Xpress posts 38.5% fall in Q3 net profit

XPRESS Holdings posted a 38.5 per cent decline in net profit to S$144,000 for the third quarter ended April 30.

Its total revenue for the period slipped 24.9 per cent to S$3.7 million due to lower revenue contribution from local and overseas operations.

"Competition has intensified in the Singapore market due to new players in the digital print segment whilst offset printing demand has declined," Xpress said. "In China, printing demand has also declined as companies lowered their spending budget due to a slowing Chinese economy."

Xpress had in May announced that two creditors that previously filed writs of summons against the group had obtained judgement from the Singapore court.

Hearing on a winding-up application against the group by two other creditors has been adjourned to July 24, pending settlement of the claims from the proceeds expected from a proposed shares and warrants issuance to an investor.

This proposed shares and warrants issuance was aimed at strengthening the group's cash flow, improving its working capital for expansion purposes, and fulfilling outstanding payables. When fully completed (including exercise of warrants), it will raise up to a total of S$23 million in proceeds.

Xpress on Thursday obtained the approval-in-principle for the share issue. It is targeting to complete the share issuance by the end of July, subject to shareholders' approval.