SINGAPORE (Nov 7): Starburst Holdings has swung back to profitability, posting 9M earnings of $1.3 million in 9M17 compared to a loss of $7.8 million in 9M16.
This came on the back of a 22.6% fall in revenue to $14.1 million from $18.2 million a year ago.
Revenue was mainly contributed by additional works undertaken for a firearm shooting range project in the Middle East, two small indoor shooting range projects, a security detention facility project and a supply and installation of entry training equipment project in Southeast Asia.
In line with the decrease in revenue as well as lower sub-contractor and overhead costs, project and production costs for 9M17 dropped 65.5% to nearly $7 million compared to $20.2 million.
Meanwhile, finance costs rose 11.6% to $250,000 in 9M17 from $224,000 in 9M16, mainly due to the increase in bank loan interest rate.
Other operating expenses decreased 4.7% to $1.81 million compared to $1.90 million the previous year, primarily attributable to the decrease in land rent and property tax due to the disposal of a leasehold property at 6 Tuas West Street in March 2017.
As at Sept 30, the group’s cash and cash equivalents stood at $11.0 million.
Jonathan Yap, managing director of Starburst says, “Given the geo-political tensions and instability the world is facing, we continue to see an encouraging level of enquiries for our firearm shooting ranges and tactical training mock-ups from law enforcement authorities, in line with their response to the threat of extremism globally. Starburst is actively responding to these enquiries and requests for tenders, including engaging in post tender discussions with potential customers.”
Shares in Starburst closed 42 cents on Tuesday.
