SINGAPORE (May 14): Specialist engineering services provider Acromec reversed out of the red with earnings of $64,000 in the half-year ended March, compared to losses of $2.4 million a year ago.
HY18 revenue grew 6% to $22.2 million, from $21.0 million a year ago.
This was due to the stable level of business activities on execution of the group’s major projects.
Gross profit surged seven-fold to $2.9 million in HY18, as cost of sales decreased by 6% to S$19.3 million.
The group says its gross profit margin was significantly improved in HY18, as the group transited from the impact of cost overruns experienced in its major projects which were substantially completed in FY17.
As at end March, cash and cash equivalents stood at $7.4 million.
The group says it continues to actively develop its business through direct negotiations and bidding for projects, underpinned by its strong balance sheet and established track record.
Looking ahead, it adds that it may face continued pressures on its margins as competition is expected to remain keen. As such, Acromec says it is actively taking steps to streamline its processes and manage its costs amid a tight foreign labour market so as to achieve cost and operational optimisation.
Shares of Acromec last closed at 19.6 cents on May 11.
