CFM unit fails to get more time from BCA to move out

Singapore

METAL-STAMPING firm CFM Holdings has announced that its subsidiary has failed to secure more time from the Building and Construction Authority (BCA) to vacate the property where its operating facility is located.

Thus, it was taking the necessary action for the group and its tenants to vacate the factory building and look for a new operating facility to relocate to within the next few days.

"During relocation, the group will take steps to ensure that the group's business operation being relocated will be minimally disrupted," it said.

However, CFM expects material adverse effect on its earnings per share (EPS) and net tangible assets per share as a result of having to move out and relocate.

Even so, the company said that it was unable to definitively assess the financial impact such as the total costs and expenses related to the exercise at this juncture.

Following an application by its subsidiary, Cheong Fatt Holdings Pte Ltd (CFH), to BCA seeking more time to move out, CFM said that it received a response from the authority on Wednesday to "cease the authorised occupation of the property immediately as no Temporary Occupation Permit (TOP) or a Certificate of Statutory Completion has been issued for the property".

Moreover, the property has not yet obtained a temporary fire permit from Singapore Civil Defence Force (SCDF).

However, it said that CFH was allowed to leave the goods and equipment at the property for the time being and may deploy security personnel to prevent any damage or theft.

Earlier, in its half-year results ended December 2014, CFM said that its subsidiary had obtained a TOP in January this year.

However, in another announcement in May, the firm said that it had come to management's attention that "the TOP was not issued by the proper authority".

"This (obtaining of TOP) disclosure was made on the basis that the company had received an e-mail from its architect that TOP had been issued," said CFM.

It then added that the management was now working with the relevant parties - including the authorities and the company's contractors and advisers - to determine the extent of the impact and the risks to the group and to take the necessary action to regularise the issuance of TOP.