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Cosmosteel notes 3 years of losses, at risk of joining SGX's financial watch list

PIPING systems provider Cosmosteel Holdings on Sunday night said that the firm has recorded three consecutive years of losses and might be placed on Singapore Exchanges' (SGX) watch list for failing to meet the bourse's financial criteria.

A company will be included in SGX's watch list if it records pre-tax losses for for three most recently completed consecutive financial years, and has an average daily market capitalisation of less than S$40 million over the last six months.

Cosmosteel's latest six-month average daily market capitalisation stands at S$36.3 million, S$3.7 million short of the bourse's requirement.

In June this year, the firm was placed on SGX's watch list for failing to meet the minimum trading price criteria of maintaining a volume-weighted average price of at least 20 Singapore cents, and a market capitalisation of at least S$40 million over the last six months.

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The company recorded a fourth-quarter net loss of S$6.6 million, reversing a net profit of S$1 million a year earlier. Revenue plunged 44.3 per cent to S$13.5 million in the three months to Sept 30, mainly because of a decrease in turnover from customers in the energy sector due to the oil supply glut, Cosmosteel said.

The counter last traded 5.085 per cent lower at 11.2 Singapore cents apiece on Friday. Some 141,000 shares changed hands.