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Allied Tech posts Q2 net loss of S$1.8m, reverses year-ago profit
ALLIED Technologies on Tuesday reported a reversal into the red - a S$1.8 million second-quarter net loss for the three months ended June 30, compared to a slight profit of S$635,000 a year ago.
Revenue fell 21 per cent to S$31.1 million, mainly due to the absence of event revenue from its e-commerce segment, although this was partially offset by higher revenue of S$4.49 million from its precision metal stamping segment.
The company has ceased to generate revenue since Q4 2018 due to the change of its principal business activity to that of an investment holding company, as a result of its internal restructuring to streamline the subsidiaries into two business segments - precision metal stamping and e-commerce.
Allied Tech expects the business environment in the next 12 months to stay challenging in light of a weak global economic outlook as well as the matter of its S$33 million of funds placed with law firm JLC Advisors under escrow that has reportedly gone missing.
"Besides streamlining its operations, the group is also exploring possible avenues for business opportunities in both its precision metal stamping and e-commerce business segments. The group will...carry out reorganisation and restructuring...as and when appropriate," it said.
It added that it is also working towards completing the special audit, and resolving the audit issues highlighted by its auditor in May 2019, and taking all necessary steps to recover the escrow funds placed with JLC.