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Design Studio widens Q4 loss on one-off cost overruns
DESIGN Studio Group, which does up kitchen and wardrobe designs for residential and hotel projects, widened its net loss in its fourth quarter from a year ago, reflecting various costs overruns and expenses on slowing manufacturing activities.
Net loss for the three months ended Dec 31, 2018 stood at S$13.75 million, compared with a restated net loss of S$3.36 million posted the same period a year ago, the firm posted on Saturday in a regulatory filing.
The results come Design Studio booked one-off items totalling S$7.5 million that include losses in manufacturing operations due to lower manufacturing activity levels, and closure of underutilised showrooms in Malaysia and in mainland China.
It has also suffered costs overruns due to delay from a project in United Arab Emirates, and costs incurred on defects and commercial settlements for completed projects.
The deeper net loss comes despite fourth-quarter revenue rising 12.2 per cent from a year ago to S$43.1 million, reflecting better business from its Singapore business unit.