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Allied Tech swings into net loss following audited accounts
ALLIED Technologies swung into an audited net loss for 2018 due to impairment losses despite initially posting an unaudited full-year profit in March, according to financial statements released on Monday night.
The Catalist-listed precision engineering company recorded an audited net loss of S$30 million, a reversal from the unaudited net profit of S$2.16 million.
This largely stemmed from an impairment loss of S$31.3 million to write-down the carrying amount of goodwill arising from the acquisitions of Asia Box Office and Activpass Holdings. "The recoverable amount derived based on value in use calculations exceeded the carrying amount," Allied Tech noted.
The company had acquired a 51 per cent stake in Asia Box Office, which provides ticketing solutions for events, for S$30 million on April 4; and another 51 per cent stake in Activpass Holdings, which provides software as a service solutions for businesses, for S$25.2 million on April 3.
In addition, cash held in escrow by Singapore law firm JLC Advisors LLP has been reclassified as amount due from a law firm instead of cash and cash equivalents as the company is currently "taking all steps necessary to recover the escrow funds from JLC".
Some S$33 million of Allied Tech's funds were reported in May to have gone missing. The Commercial Affairs Department later called in Allied Tech's 31-year-old executive director Kenneth Low Si Ren on May 28 to help with investigations.
Information, records and documents also were seized from the company's premises and those of its subsidiaries, including Asia Box Office and Activpass Holdings.
Information, records and documents were seized from the company's premises and those of its subsidiaries, including Asia Box Office and Activpass Holdings.
Allied Tech had in early April warned that it is expected to report a net loss in 2018, attributing it mainly to impairment losses on certain assets which are expected to be greater than the profits generated from operations.
The company's shares last traded at 1.1 Singapore cents on May 2, before it requested for a trading halt on May 3 and recommended on May 8 that the trading halt be converted to a voluntary trading suspension with immediate effect.