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Swee Hong expects net loss for Q3

SWEE Hong Limited expects to report a net loss for the third quarter ended March 31, the construction company said in a Singapore Exchange (SGX) filing on Friday night.

This is primarily attributable to impairment allowance for contract assets.

The profit guidance was based on a preliminary review of the group's management accounts, and further details of the financial performance will be disclosed when Swee Hong announces its unaudited financial results for Q3 on or before May 15.

In the same filing, Swee Hong provided an update to its April 23 announcement which disclosed that its major shareholder, KH Foges (KHF), had applied for moratorium under section 211B of the Companies Act. The section allows for proceedings against a company to be restrained when the company proposes, or intends to propose, a compromise or arrangement between the company and its creditors.

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Swee Hong announced that KHF has now applied for judicial management and has provided a letter of support to the group as disclosed in its annual report for the financial year ended June 30, 2018.

Swee Hong requested for a trading halt earlier on Friday, citing its "uncertain" financial position under Singapore Exchange (SGX) listing rules.