Xpress Holdings, a printing company, has reported a 51.6 per cent drop in its second quarter net profit to S$214,000, from S$438,000 a year earlier.
This came on the back of a 14.1 per cent drop in revenue to S$4.1 million for the quarter ended Jan 31, 2015, from S$4.8 million for the same period the year before.
Xpress' results report also highlighted the group's cash flow problems.
The group's working capital position was negative as at Jan 31, 2015, and the net drop in cash and cash equivalents for Q2 was S$57,000, compared to a net gain of S$5.3 million in the corresponding quarter a year ago. Taking into account its Q1 cashflow, the group had a cash and cash equivalent deficit of S$1.34 million for H12015.
In February, the company announced that it was working on a proposed share and warrants issuance to an investor, which is expected to raise up to S$23 million. "Based on the assurance from the investor and taking into account the progress of the transaction to date, and consequently the prospect of infusion of new capital as targeted, the board believes that the company is able to meet its short-term obligations as and when they fall due," Xpress said in Tuesday's filing.
It added that it is assessing the current challenges facing the print industry.
For Q2, Xpress' earnings per share fell to 0.8 Singapore cent, from 2 Singapore cents a year earlier. The group's net asset value per share rose to 6.7 Singapore cents as at Jan 31, 2015, from one Singapore cent as at July 31, 2014.