Gaylin warns of net loss for Q4 and FY18 ending March 31

OFFSHORE and marine service company Gaylin Holdings said that the group is expected to record a net loss for the fourth quarter and 12 months ending March 31, 2018.

The board said that the group now expects an inventory provision of S$35 million, an increase of S$10 million from the S$25 million expected amount disclosed in the announcement dated March 23. The S$35 million inventory provision is based on an extended and updated assessment of the value of the group's aged inventories by professional valuers and consultants.

In addition, non-recurring costs during fiscal 2018 amounted to S$6 million due to transaction and restructuring costs arising from the March 13 share placement as well as charges from the write-off of an intangible asset. As a result, the expected inventory provisions, intangible asset write-off, and transaction and restructuring costs totalled S$41 million.

All this is based on information currently available to the board, Gaylin said. Further details of the group's financial performance will be disclosed when it announces its Q4 2018 and fiscal 2018 results on or before May 25.