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Design Studio Group's Q1 net profit dives 84%

INTERIOR fit-out and panelling products provider Design Studio Group has posted a net profit of S$322,000 in the first quarter, down 84.5 per cent from a restated net profit of S$2.1 million in the same period last year.

Revenue in the three months ended March 31 was S$41 million, up 17 per cent from a restated S$35 million in the same period last year.

Subcontractors' costs rose 67.8 per cent to S$21.4 million.

Last year's figures were restated to take into account the retrospective adjustments arising from the adoption of SFRS 9 on financial instruments and SFRS 15 on revenue from contracts with customers, the group said.

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Design Studio said in a statement: "The group completed the first phase of its restructuring in 2017 and underwent a series of measures including the appointment of a strengthened executive management team."

Design Studio secured S$59 million of new projects in the first quarter, up from nil in the first quarter last year. This brings its order book to S$149.5 million as at March 31.

The group added: "We are cautiously optimistic about the outlook in our key markets of Singapore and Malaysia, as well as our ongoing expansion into other international markets."

Earnings per share was 0.12 Singapore cent, down from a restated 0.80 Singapore cent in the first quarter last year.

Net asset value was 36.09 Singapore cents as at March 31.

The counter rose 2.5 Singapore cents or 7.79 per cent on Thursday to close at S$0.35 before results were announced.