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A-Smart back in the black with H2 net profit of S$86,000
PRINTING firm A-Smart Holdings recorded a net profit of S$86,000 for the six months ended July 31 (H2 2020), reversing a net loss of S$2.12 million in the year-ago period.
This was mainly helped by a substantial gain on liquidation of a subsidiary corporation and government grants such as the Jobs Support Scheme and two-month rental rebates, according to A-Smart's financial results released on Monday night.
These activities were classified under "other income" on the firm's balance sheet, which grew about 12 times year-on-year to S$657,000 in H2.
Stripping out this figure, total revenue in H2 tumbled nearly 50 per cent to S$1.78 million, from S$3.53 million a year ago. The group's core revenue stream from printing services came in at S$1.76 million in H2, down from S$3.51 million in the year-ago period, mainly due to the Covid-19 outbreak and consequent "circuit breaker" period earlier this year.
The group said that although the printing segment continued operations as an essential service, most of its major clients were closed during the circuit breaker period, which impacted revenue.
In line with the fall in revenue, total raw materials and consumables used and changes in inventories in H2 came in at S$610,000, representing a 56 per cent decline from H2 2019.
Staff costs stood at S$1.11 million, 51.3 per cent lower than a year ago. In view of the economic downturn, the group said it did not propose any staff bonus or salary increments in H2. The proposed staff bonus for the prior year was also partially cancelled and written back to the accounts in H2.
Other operating expenses amounting to S$300,000 in H2 was 81.3 per cent lower than a year ago, mainly due to the absence of the preliminary expenses for overseas property projects of S$900,000 incurred in H2 2019; and operating lease expense of S$210,000 due to the adoption of SFRS(I) 16.
Net profit for the full year ended July 31, 2020 stood at S$210,000, up from a net loss of S$2.49 million a year ago.
A-Smart closed on Monday at S$0.295, down S$0.005 or 1.67 per cent before its results were released.