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Ryobi Kiso swings into the red in Q2

Tuesday, February 2, 2016 - 18:47

RYOBI Kiso Holdings swung to a net loss of S$7.9 million for the three months ended Dec 31, 2015 from S$132,000 a year ago as higher costs and an out-of-court settlement erased revenue gains.

For the fiscal second quarter, the group posted a 10.5 per cent increase in revenue to S$54.1 million.

But cost of sales rose 23.7 per cent to to S$51.9 million, mainly due to increase in business activities and additional costs recognised for certain completed projects in Singapore.

The group incurred other net losses amounting to S$6.3 million in the second quarter, after incurring other net losses of S$463,000 in the year-ago period. This mainly stemmed from an out-of-court settlement that was reached recently between the group and one of its main contractors, Lum Chang Building Contractors Pte Ltd in an arbitration proceeding.

Ryobi Kiso said that it expects public infrastructure projects to be the key support for the construction sector this year. However, external factors such as keen competition and the tight labour market will continue to add pressure on the group's performance.

"Therefore, the group will remain cautious about the local and regional markets where it operates and will continue to strive to secure more projects," it added.

Its net order book as at Dec 31, 2015 stood at S$135.3 million, comprising public infrastructure projects, public housing projects, residential projects, commercial and institutional projects, as well as geoservices.

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