Darco Water Technologies flags revenue impact from Covid-19 outbreak

DARCO Water Technologies on Tuesday flagged that its revenue for the current financial year ending Dec 31, 2020 will be significantly impacted by the Covid-19 outbreak, due to control measures in Wuhan preventing operations from resuming at its subsidiary there.

The personnel of Wuhan Kaidi Water Services, which has historically contributed about half of the group's revenue, have not been able to return to work since the Lunar New Year, when the city was locked down to contain the virus. Provincial authorities have said that the earliest possible date that Wuhan-based personnel can resume work is tentatively March 11.

The board said that the control measures implemented to control the outbreak are expected to result in significant adverse impact to Wuhan Kaidi's and the group's results for the current financial year.

Darco shares last traded flat at S$0.131 on Feb 17.