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MS Holdings' FY15 profit falls 36.5% to S$2 million on depreciation, IPO costs

MS Holdings' full-year net profit fell 36.5 per cent to S$2.04 million as depreciation of new cranes and listing-related expenses hit its bottom line, the mobile crane operator announced on Friday.

Net profit on a per-share basis was two Singapore cents for the year ended April 30, 2015. The company has declared a final dividend of one Singapore cent per share. MS Holdings stock last traded at 20 Singapore cents on Wednesday.

Revenue gained by a modest 0.6 per cent to S$17.09 million, although a 6.7 per cent increase in cost of sales dragged gross profit down by 8.1 per cent to S$6.43 million.

Despite other income more than doubling to S$2.98 million on the back of disposal gains, the company's expenses also rose sharply. MS Holdings recorded S$2.8 million of depreciation largely from the acquisition of a 750 tonne mobile crane in the second half of fiscal 2014 and 180 tonne and 500 tonne mobile cranes in the first half of fiscal 2015. The company's November 2014 initial public offering also created S$692,000 of expenses.

Looking ahead, the company said that it was "cautiously optimistic" about its prospects.