InnoTek gives H1FY2022 profit guidance

INNOTEK issued a profit guidance for its financial performance for the first half of FY2022 to June, as higher operating costs and customers’ operations disrupted by Covid-19 prevention measures hit its bottom line.

The precision metal components firm stated it would likely report a net loss when it releases its financial results in mid-August, according to a bourse filing on Thursday (Jul 14).

InnoTek attributed the loss to soaring costs of labour and manufacturing, as well as higher cost of raw materials due to disruptions to the global supply chain. It also said its turnover was hit by a drop in demand from its major customers operating in China, as the country imposed movement restrictions to stamp out Covid-19.

InnoTek shares rose 3 per cent or S$0.015 to S$0.52 on Thursday, before the announcement.