SHARES of Xpress Holdings took an early tumble on Tuesday after the printing company took significant impairments that dragged it into a deeper loss.
Xpress stock was down by a third as at 9.53am, trading at 0.6 Singapore cent. Trading was halted over the weekend and only resumed on Tuesday.
The company said over the weekend that it lost S$147 million in the year ended July 31 after taking a S$64.5 million impairment on goodwill related to its acquisition of Precise Media Group, and a S$63.9 million impairment on trade and project receivables because of struggles in the commercial printing industry.
Xpress said excess capacity in the printing industry and aggressive price wars have led to a drop in business volumes, while a slower China has hit one of the company's major markets.
Xpress is refocusing on smaller volume printing and high-speed digital solutions to address the challenges, and has also been in merger and acquisition discussions.
The company did get some breathing room from its creditors. Xpress said a winding-up application by United Overseas Bank has been adjourned to Jan 28, 2015.