Santak Holdings 580 has issued a profit warning for the FY2023 ended June 30, due mainly to substantially lower contributions from the group’s precision engineering division.
In a bourse filing on SGX on Aug 24, the company says it expects to report substantially lower revenue and a significantly higher loss after tax for FY2023 compared to the previous financial year.
Aside from lower contributions from Santak’s precision engineering division, the sales of its trading and distribution division was also lower compared to FY2022.
Gross profit for the financial year also decreased significantly primarily due to substantially lower economies of scale recorded as a result of the substantial decrease in turnover. Other operating expenses increased in FY2023 arising from a higher foreign exchange loss registered in the period compared to FY2022.
Santak will report its earnings for FY2023 before the end of August.
Shares in Santak closed flat at 3.2 cents on Feb 3.
