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MS Holdings reverses loss, posts half-year net profit of S$34,000
MS Holdings posted net earnings of S$34,000 for the half-year to October, reversing a loss of S$335,000 for the corresponding period a year ago. This came mainly on an improvement in the utilisation rate of its mobile cranes.
The Catalist-listed mobile crane rental company said in a regulatory filing on Tuesday that the better utilisation rate of its mobile cranes lifted its top line to S$7.5 million from S$6.9 million for the half-year to October. Its service income came in higher as well by 18.2 per cent to S$500,000.
Therefore, its earnings came in at S$34,000, compared to a loss of S$335,000 for the year-ago period. But the company decided against giving dividends, "in view of the group's ongoing needs for working capital".
MS Holdings recorded a working capital deficit of S$800,000 as at Oct 31, but it said it has "adequate resources to pay its debts as and when they are due".
Yap Chin Hock, chief executive of MS Holdings, said: "The prospect for the crane rental industry is expected to remain challenging although the rental rates of the cranes have slowly stabilised. Going forward, the group will continue to focus on optimising the deployment of our fleet of mobile cranes and lorry cranes to drive further operating improvements. Meanwhile, we will also remain on the lookout for new business opportunities to grow our profitability."
MS Holdings closed flat at S$0.05 on Tuesday before the results were announced.