CFM Holdings warns of higher net loss for H1 2021

METAL-STAMPING firm CFM Holdings expects to record a higher net loss after tax for the half-year ended Dec 31, due to a decline in gross profit margin, it said in a filing to the Singapore Exchange on Tuesday.

Its net loss is expected to widen in the first half of FY2021 despite higher revenue, higher other income and lower operating expenses, the company said.

The higher net loss after tax was mainly due to a decline in gross profit margin, which was in turn attributable to an increase in cost of sales from minimum-order requirements for material purchases, tooling and tooling material purchases, higher direct labour costs as well as sub-contract services for its metal stamping operations, it said.

CFM is a manufacturer providing metal stamping services, design, fabrication and the sale of tool-and-die used for the manufacture of stamped metal components.

It added that further details of the group's performance will be disclosed when the company announces its financial results for H1 2021 on or before Feb 10.

The counter closed at 3.8 Singapore cents on Tuesday, down 0.4 Singapore cent.