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CSC Holdings Q4 losses deepen to S$6.9m on cost overruns
GEOTECHNICAL engineering firm CSC Holdings sank further into the red, with losses deepening 20.6 per cent to S$6.9 million for the fourth quarter ended March, the company announced on Thursday.
This was partly due to a provision for loss of S$1 million on a project with cost overruns arising from stricter regulatory requirements and unforeseen difficult ground conditions. Meanwhile, revenue for the quarter dipped 0.9 per cent year-on-year to S$74.7 million.
For the full year, CSC's losses widened 34 per cent to S$18 million on the back of a 4.6 per cent drop in revenue to S$323.1 million. Topline for the year was hit by reduced work activity, due to delays in the commencement of new projects.
The company has taken on more debt in the year, with total borrowings growing to S$102.7 million as at end-March from S$80.4 million a year ago, due to an increase in short-term borrowings to fund business operations.
The company has cash holdings of S$7.2 million as at end-March. CSC's debt-to-equity ratio stands at 0.72.
Moving forward, CSC is "cautiously optimistic" about a potential turnaround in the local construction sector and will maintain a "prudent approach towards tenders for public and private construction projects".
CSC shares closed at 1.8 Singapore cents on Thursday, up 0.1 cent.