SINGAPORE (May 8): Acromec posted a net loss of $2.4 million in 1H17 ended March, from earnings of $1.6 million a year ago.
Revenue in the half-year period fell 10% to $21.0 million, from $23.2 million a year ago.
In an SGX filing on Monday, Acromec says it “was faced with executional difficulties and complexities for its major projects” and the resultant escalation of costs. It reports that it has since substantially completed these projects in HY2017.
Cost of sales increased by 12% to $20.6 million, resulting in a 92% decline in gross profit to $406,000.
Administrative expenses rose 13% to $2.6 million while other operating expenses increased by 69% to $215,000.
These were mainly due to its 60%-owned subsidiary Golden Harvest, which was acquired in HY2017.
Cash and cash equivalents stood at $11.3 million as at March 31, 2017.
The group’s order book as at May 8, 2017, stands at approximately $27 million.
Looking ahead, Acromec says it will “continue to keep a lid on its costs, amid a tight foreign labour market and keen competition”.
Shares of Acromec closed 1.5 cents lower at 38 cents on Monday.
