SINGAPORE (Feb 12): ISOTeam announced 2Q18 earnings fell 38.9% to $1.89 million compared to $3.09 million in 2Q17.
Revenue decreased 1.0% to $23.8 million from $24.0 million a year ago, mainly due to lower contribution from the group’s repairs and redecoration (R&R), as well as coating and painting (C&P) businesses
This was partially offset by an increase in revenue from the group’s addition and alteration (A&A), as well as other businesses.
However, cost of sales increased by 17.0% to $18.8 million from $16.0 million last year.
Therefore, gross profit for the quarter stood at $5.0 million, 37.3% lower than $7.96 million recorded in the previous year.
Marketing and distribution expenses trebled to $0.46 million from $0.15 million last year, mainly due to increase in business entities arising from acquisition of a subsidiary and incorporation of new subsidiaries.
General and administrative expenses dropped 24.1% to $3.34 million compared to $4.39 million a year ago, mainly due to absence of one-time costs incurred in relation to allowance for doubtful receivables for a customer under receivership in last financial period and decrease in staff related expenses.
Finance costs was 72.5% higher at $0.21 million compared to $0.12 million last year, mainly attributable to interest incurred for utilisation of revolving loan and property loan for the purchase of the Group’s new corporate office.
Other operating expenses almost trebled to $132,000 from $47,000 in the previous year.
Anthony Koh, executive director and CEO of ISOTeam says, “I believe with the upcoming move and centralisation of all our subsidiaries at our new premises in Changi, we will be able to lower some of our overheads, while improving operational efficiencies and productivity.”
On the outlook, the group expects market conditions to remain challenging over the next 12 months, due to intensifying price competition partially brought on by fewer projects available in certain segments.
“We continue to see opportunities in the R&R and A&A segments in Singapore under the Government’s various estate rejuvenation schemes,” adds Koh.
Shares in ISOTeam closed at 36 cents flat on Monday.
