SINGAPORE (Aug 1): Asia Enterprises says 1H17 earnings declined 91% to $138,000 from $1.5 million a year ago on sluggish sales and higher depreciation charges.
Revenue for the three months ended June came in at $14.9 million, down 18% from $18.2 million the previous year. This was mainly due to sluggish sales during 1Q17 and an increase of $0.9 million in depreciation charges following the completion of its warehouse redevelopment.
In 2Q17, earnings closed 4% lower at $699,000 from a year ago. Revenue had risen 14% to $9.7 million on higher average selling prices (ASP) but cost of sales rose 17% to $7.1 million.
As at 30 June 2017, the group had a balance sheet with cash and cash equivalents of $55.2 million and zero borrowings. Its net asset value per share stood at 27.06 cents, including cash of 16.18 cents and inventory of steel products with book value of 4.64 cents.
Yvonne Lee, Managing Director of Asia Enterprises, says, “With our healthy financial position, Asia Enterprises is well-positioned to withstand the present market uncertainties and to capitalise on business opportunities when they arise.”
“At the same time, the Group will remain financially prudent in its expenses and inventory procurement decisions, while staying vigilant on its credit exposure to safeguard our financial position,” Lee adds.
Shares in Asia Enterprises closed at 18 cents on Tuesday.
