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Innopac Q4 loss widens to S$2.1m on rising costs

INVESTMENT holding company Innopac Holdings' net loss for the fourth quarter ended June 30, widened to S$2.1 million from S$446,000 a year ago, on declining revenue and rising other expenses and staff costs.

Loss per share for the year to June 30 stood at 0.04 Singapore cent, from 0.19 Singapore cent a year ago. No dividend has been declared for the quarter, unchanged from a year ago.

Revenue from rental income of investment properties fell 8.7 per cent to S$21,000 from S$23,000 in the year-ago quarter, due to exchange differences on translation of foreign operations.

Administrative expenses went up 29.8 per cent to S$222,000 from S$171,000 a year ago, mainly from employees’ benefits compensation from resignations and terminations in the quarter.

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In September, the group announced that its entire finance and administrative staff had resigned, a number which was not disclosed. It was seeking a two-month extension from SGX to announce its fiscal 2019 results and hold its annual general meeting – a request that was rejected.

Other expenses were at S$1.8 million, seven times that of S$247,000 the year before. This was due mainly to professional fees related to its share placement; legal fees related to Saxo Bank litigation; and impairment of investments in the gold exploration and exploitation joint venture and dormant CNG distribution venture in China.

For the full year ended June 30, the company’s net loss narrowed to S$3.8 million, from S$8.6 million a year ago.

Revenue for the year stood at S$59,000, down 56.6 per cent from S$136,000 a year ago, also due to exchange differences on foreign operations translation and absences of gain from trading of marketable securities, along with lower rental income of investments.

Lower rental income was also due to one of the group’s investment properties being untenanted for about nine months.

Other expenses for the full year stood at S$2.8 million, down 62.9 per cent from S$7.5 million a year ago. Administrative expenses meanwhile, were up 3.4 per cent to S$993,000 due to staff resignations and terminations.

In July, Innopac said it does not have the cash resources to consider making an exit offer to its shareholders, after receiving a notice of delisting from the Singapore Exchange on June 4 for failing to meet criteria to exit the bourse's watch list.

Innopac - which doesn't have a controlling shareholder - said that it has not received any proposal or exit offer from any shareholder. The board is currently exploring options to move the company forward, including monetising the group's assets.

Innopac shares last traded at S$0.002 before the counter was suspended in June 2018.