Natural Cool posts H1 net loss

NATURAL Cool Holdings posted a net loss of S$324,000 for its half year ended June 30, easing from a S$630,000 loss a year ago.

Revenue went up 22.1 per cent to S$66 million, mainly due to higher local sales to aircon wholesalers, and maiden contribution of revenue from regional sales by its new 51 per cent-owned subsidiary JNVHC in August 2017.

Loss per share was 0.15 Singapore cent, from a loss per share of 0.24 cent previously.

No dividend was declared.

The group expects its operating environment and conditions to be challenging for the next 12 months.

"The group will continue to enhance its efforts to promote sales and to increase margins by improving operational efficiency and rationalising cost structure in order to enhance our competitiveness," it said.

The group expects to face market challenges arising from the introduction of additional property cooling measures announced in July 2018, which would affect its aircon division. In addition, any significant appreciation of the US dollar may impact the cost of its imports of aircon materials.

As for its paint division, it is anticipated that the impending sale of 38 Lok Yang Way will ease interest cost and working capital burdens and barring any unforeseen circumstances, steer the paint business into profitability.