MAI-listed Light Up Total Solution, a local fully integrated lighting systems supplier, needs to adjust its cash spending plan due to the delay in state budget spending for fiscal 2024.
The budget spending allocation plan was approved by the House of Representatives in March to bolster the overall economy, following a months-long delay in budget planning for fiscal 2024, which began on Oct 1 last year.
The company has decided not to spend 54 million baht on its plan to develop its office buildings, showrooms and warehouses, said Phatt Tratkosit, chief executive of Light Up Total Solution.
The cash is part of proceeds worth 154 million baht the company raised during its initial public offering in May.
Light Up Total Solution earlier planned to spend 100 million baht of the total as working capital for its large-scale projects, including smart parks, smart cities and smart street light projects.
The other 54 million baht was initially set to be allocated for the company's infrastructure development.
With a need to cancel this infrastructure development plan, the company will extend the lease periods for office space, showrooms and warehouses, Mr Phatt said.
The company reported it has remaining cash worth 133 million after it allocated 10.8 million baht for large-scale projects.
The allocation was approved at the annual meeting of its shareholders which agreed to use the money to support business operations that supply lighting equipment to customers as well as the company's lighting system installation service.
According to Mr Phatt, the delay in the state budget spending is expected to affect large-scale projects which were awarded by several state agencies and state enterprises, so it needs to revise its money spending plan.
The company needs to prepare money to support its lighting equipment and IT solution businesses as well as asset acquisition plans in the future.
Mr Phatt expects the company's revenue to grow by 30% this year, up from 229 million baht in 2023.