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Jadason posts third straight loss, falls into Watch List

Jadason Enterprises posted a third straight annual loss in 2014, placing the printed circuit board equipment supplier within the criteria for being put on the Singapore Exchange's Watch List.

Jadason on Saturday reported a net loss of S$8.9 million, or 1.24 Singapore cents per share, for the year ended December. That was wider than its year-ago loss of S$5.9 million, or 0.81 Singapore cents per share. Pre-tax loss was S$8.7 million, wider than the S$5.3 million pre-tax loss in 2013.

The exchange will place Mainboard-listed companies on the Watch List if they record pre-tax losses for the past three straight years and have a market capitalisation below S$40 million.

Jadason's market cap was S$32.5 million as at Friday, when the stock closed at 4.5 Singapore cents, the company said.

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Companies that are placed on the Watch List have two years to exit the Watch List or face delisting. If the company's market cap is at least S$40 million, the company may apply to be removed from the Watch List if it reports a profit in the most recently completed financial year. If the market cap floor is not achieved, the profitability test will be higher, at a cumulative three-year pre-tax profit of at least S$7.5 million and at least S$1 million of profit for each of those three years, or a cumulative pre-tax profit of at least S$10 million for the last one or two years.

Jadason said equipment and supplies sales fell 24 per cent to S$37.3 million in 2014. The manufacturing and support services business saw a 5 per cent increase in sales, to S$43.5 million, but a poorer product mix and a write-down of inventories sent that segment into a higher operational loss of S$3.8 million.

Jadason expects printed circuit board makers to be cautious in the near term and expects soft demand in the first quarter of 2015.