SINGAPORE (Sept 8): XMH Holdings, the provider of diesel engine, propulsion and power generating solutions in the marine and industrial sectors, posted a 44.5% decline in earnings to $106,000 for the 1Q ended July, from $191,000 a year ago.
This was mainly due to the absence of an unrealized foreign exchange gain derived from the revaluation of Singapore dollar loans by a subsidiary company whose functional currency is denominated in Japanese yen.
As a result, XMH incurred a net finance cost of $0.2 million in 1Q18, compared to a net finance income of $1.0 million a year ago.
Revenue slipped 2.8% to $18.9 million in 1Q18, from $19.4 million a year ago.
This is due to a decrease in revenue from its after-sales and distribution business segments as a result of the weak market sentiment, and partially offset by improved sales from its project business segment due to the completion of a major project.
Gross profit grew 29.5% to $5.0 million in 1Q18, from $3.9 million a year ago, on the back of a 6.6-percentage-point improvement in gross profit margin to 26.5%.
As at end-July, cash and cash equivalents stood at $26.6 million.
“Due to weak demand for marine related products and intense competition, we continue to focus on areas which can help us overcome these challenges,” says XMH chairman and managing director Elvin Tan Tin Yeow.
“We aim to position ourselves for the eventual recovery and increase shareholders’ value in the long run,” he adds.
Shares in XMH last closed at 28 cents on Sept 4.
