CFM Holdings gets go-ahead to continue operations

METAL-STAMPING firm CFM Holdings on Thursday said it has received verbal approval from the authorities to continue operating during the circuit-breaker period.

Its Singapore subsidiaries Cheong Fatt Holdings and CFM Infratrade have received approval from the Ministry of Trade and Industry to be exempted from the suspension of business activities, which will be in effect till May 4.

CFM said it is still unable to assess the impact that the heightened safe-distancing measures will have on its earnings per share and net asset value (NAV) per share for the current finacnial year ending June 30, 2020.

Revenue contribution from Singapore was about 22 per cent of total revenue for the financial year ended June 30, 2019, and 16 per cent for the half-year ended Dec 31, 2019.

The Covid-19 pandemic and its effects on the global and domestic economy may impair the group's earnings capacity and profitability, as well as its ability to secure new sales in the next 12 months, CFM said.

Earnings per share and NAV per share for the current financial year might hence take a hit, as non-essential services are non-operative.

Shares in CFM last traded at 1.4 Singapore cents on Jan 29.