Metech posts Q1 net profit of S$30,000, reverses year-ago loss

CATALIST-LISTED metal dealer Metech International, which is making a shift into supply chain management, returned to the black in the first quarter, according to results released on Wednesday.

It posted a net profit of S$30,000 for the three months to Sept 30, reversing the S$1.78 million loss the previous year, on the absence of losses from discontinued operations after the group sold its electronic waste management business. Earnings per share was 0.03 Singapore cent.

This was even as revenue fell by 40.2 per cent to S$14.6 million, which the company attributed to its lower exposure to metal-trading activities, given global economic softness.

Metech pointed to an announcement in September that its wholly-owned subsidiaries had won commitments from clients for technical, operation and procurement supply chain management services. The group plans to re-allocate resources and develop similar asset-light businesses, which it believes present lower risk than metal trading, it said in its outlook statement.

"Barring any unforeseen circumstances, the company is confident that with a considerable reduced cost structure and a new asset-light business within the supply chain management sector, the group will continue to generate positive cash flow."

No dividend was recommended, unchanged from before, which Metech said was because "the group currently does not have accumulated profits available for the declaration of a dividend".

Metech shares saw no trading on Wednesday but last closed at S$0.142.