SINGAPORE (May 30): King Wan Corporation has posted earnings of $1.0 million for the full year ended March, reversing out of a loss of $17.9 million a year ago.
The improvement was attributed to higher contributions from associates, lower allowances made for amounts due from associates, and the absence of impairments on available-for-sale investments during the year.
Group revenue fell 9% to $91.9 million in FY17, from $100.8 million a year ago.
This was mainly attributable to a lower volume of ongoing mechanical and electrical (M&E) contracts available for revenue recognition during the year.
Cash and cash equivalents stood at $13.1 million as at March 31, 2017.
Looking ahead, King Wan says its M&E segment is expected to remain challenging with continuous pressures on contract values and stiff competition for new projects.
As at May 30, the group has approximately $167 million worth of M&E engineering contracts on hand, with completion dates ranging from 2017 to 2024.
Shares of King Wan last closed at 16.5 cents on Monday.
