You are here
Kingsmen Creatives expecting net loss for H1 2020 due to Covid-19
KINGSMEN Creatives is expecting to report a net loss for the first half of 2020 as a result of the Covid-19 pandemic, compared with the same period last year, when it recorded a net profit, the mainboard-listed company said in an exchange filing on Thursday.
This is based on a preliminary review of the unaudited financial results for the half year ended June 30, it said after trading hours.
The pandemic has severely affected the group's business, resulting in cancellations and postponements of contracts, the temporary closure of factories and operations, and a disruption in the supply chain, Kingsmen said in the filing.
As a result, it has registered a decline in revenue and higher cost of sales due to the disruption to its supply chain for H1 2020.
Kingsmen said: "Despite the ongoing cost-containment and cost-saving measures taken, it has not been sufficient for the group to achieve a positive bottom line."
Its board of directors believes, however, that the working capital position of the group remains healthy.
The company is still finalising the group's unaudited financial results, it said. Further details of the group's financial performance will be disclosed when the it announces its H1 2020 unaudited financial results on or before Aug 14.
Its board has also advised shareholders and potential investorss to exercise caution when dealing in the shares of the company.
Kingsmen's shares closed flat at S$0.22 on Thursday.