Addvalue Technologies posts H1 loss of US$1.1 million

Addvalue Technologies' net loss for the first half ending Sep 30 stood at US$1.1 million, narrowing from US$1.5 million in the same period last year, the mainboard-listed company said in a bourse filing on Sunday (Nov 14).

This amounts to a loss per share of 0.05 US cent, compared to 0.08 cent in the year-ago period.

Revenue gained 124.6 per cent to US$1.6 million from the previous year's US$720,000. Cost of sales also grew 90.2 per cent to US$563,000 from US$296,000 in the year-ago period. This translates to a gross profit of US$1.1 million, a 148.6 per cent increase from last year's US$424,000.

"The higher gross profit margin attained was attributed principally to the delivery of more high yielding products in H1 2022 relative to H1 2021," Addvalue Technologies said.

However, this was offset by selling and distribution expenses (US$162,000), administrative expenses (US$1.1 million), and other operating expenses (US$563,000).

The group added that administrative expenses grew due to higher manpower costs and related expenses as a result of increased headcount, in preparation for new processes in the company's IDRS-related (inter-satellite data relay system) business and RES-related (reconfigurable embedded system) segment.

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Addvalue Technologies recorded a net operating cash inflows of US$1.1 million and a net current liabilities of US$2.2 million as at Sep 30. Net cash used in financing activities amounted to US$555,000, mainly for repayment of borrowings.

Shares of Addvalue Technologies traded flat at 1.4 Singapore cents on Friday's (Nov 12) close.