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Soo Kee's Q4 profit dives 43.2% on higher expenses

JEWELLER Soo Kee Group posted a 43.2 per cent drop in fourth-quarter net profit, from S$4.17 million to S$2.37 million, it said on Sunday.

Revenue for the quarter ended Dec 31, 2015, was 4.4 per cent lower at S$36.4 million, even as the group saw higher year-on-year employee benefits expense, finance costs and other expenses during the quarter.

Soo Kee's counter began trading on the Catalist last August.

For the full year, net profit was 24.1 per cent lower, falling from S$10.6 million to S$8.06 million.

Revenue, however, saw a 3.5 per cent rise to S$139.3 million. Even so, this was offset by higher material costs, employee benefits expense and finance costs.

"Employee benefit expense increased by S$2.3 million, or 13.8 per cent, mainly due to the increase in the directors' remuneration and directors' fees in conjunction with the company's initial public offering on Catalist . . . annual salary increments for existing employees and higher commissions payable to sales staff which are in line with the higher revenue," the company said.

Earnings per share stood at 0.4 Singapore cent and 1.7 Singapore cents for the quarter and full year, respectively, against 0.98 Singapore cent and 2.4 Singapore cents for the corresponding periods in the previous year.

The company declared a final ordinary cash dividend of 0.5 Singapore cent per share.

At the close of trading on Friday, Soo Kee's counter finished 0.2 Singapore cent lower at S$0.154, before the release of its results.