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Swee Hong returns to the black with S$25.3m Q1 profit
TROUBLED construction firm Swee Hong said on Wednesday it has returned to the black with a net profit of S$25.3 million for the first quarter.
Excluding gains from debt restructuring, net profit for the three months ended Sept 30, 2016, was S$2.9 million. A year ago, it had reported a net loss of S$1.6 million.
Revenue for the quarter more than doubled to S$12.5 million, thanks to the progress of its ongoing projects, particularly the construction of the new road between MacRitchie Viaduct and Adam Flyover, and the Nee Soon tunnelling project.
The company has an order-book position which stands at S$105.5 million as at end-September. With its net tangible assets eking into positive territory at S$3.1 million in the first quarter (from net tangible liabilities of S$45 million at end-June), the company expects to start bidding for new projects.
Swee Hong credited its performance to the guidance of the new management team. As part of the scheme of arrangement which took effect last December, the company has issued more than 929 million shares to the scheme creditors, and disbursed about S$9.5 million in cash to them.
Swee Hong said: "The company will continue to work actively towards satisfying its commitments to the scheme creditors under the scheme with the aim of bringing the scheme to a close."