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MeTech International posts S$1.4 million loss for Q1 FY2015

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MeTech International reported a loss of S$1.4 million for Q1 FY2015, versus a profit of S$46,000 in the corresponding quarter a year prior.

METECH International reported a loss of S$1.4 million for Q1 FY2015, versus a profit of S$46,000 in the corresponding quarter a year prior. Revenue climbed 15.6 per cent to S$9.89 million, lifted by higher contributions from its Singapore operations.

Meanwhile, loss per share for the quarter worked out to 0.0625 cent, from earnings per share of 0.0064 cent previously.

During the quarter, cost of sales went up nearly 40 per cent to S$9.7 million. The group said it recorded lower margins during the quarter under review due to challenging business climates in Singapore and the US, with gross margin declining from 18.8 per cent to 1.9 per cent. In Singapore, it experienced a slowdown in business activity from its metals operations due to the delay of several projects. In the US, revenue fell while overhead expenses related to labour and premises remained.

"With rising business costs and current business conditions, the group expects FY2015 to be a challenging year," it added.