SINGAPORE (May 30): Accrelist, the provider of corporate accretion services, swung back to profitability with earnings of $0.2 million in FY18 from $8.3 million in losses the previous year.
This came as revenue for the full year grew more than hundredfold to $112.5 million from $0.9 million after the group increased its shareholding in Jubilee Industries Holdings, resulting in Jubilee becoming a subsidiary rather than an associated company of the group.
As Jubilee contributed to higher sales revenue after being recorded as a subsidiary, this helped to more-than offset lower contributions from the group’s systems segment due to new industry competitors as well as lower market demand.
Over the year under review, the group booked other gains of $6 million compared to losses of $3.7 million in FY17 after netting a gain from the purchase of Jubilee, and also in the absence of an impairment of an associated company recorded in the previous year.
Operating expenses grew to $11 million from $2.8 million a year ago due to higher marketing & distribution expenses as well as administration expenses from staff cost incurred with Jubilee being a subsidiary of the company.
Finance costs grew to $1.1 million from $0.1 million in FY17 due to interests incurred by Jubilee.
Going forward, the group expects a challenging operating environment and says it will work and devote its resources to seek new opportunities in new business segments.
It also intends to remain vigilant on cost, credit and cash management in response to the volatile operating environment as it carries out its expansion strategies.
Shares in Accrelist closed 20% higher at 0.6 cent on Monday.
