Sysma Holdings reverses into the red with S$2.7 million H1 loss

CONSTRUCTION services provider Sysma Holdings posted a net loss of S$2.7 million for the six months ended Jan 31, 2023, due in part to higher costs.

The H1 losses represent a reversal from a net profit of S$3.1 million posted in the corresponding period a year ago.

The results translate to a loss per share of 0.82 Singapore cent, against earnings per share of 1.45 Singapore cent in the year-ago period.

Revenue was up 16.4 per cent to S$29.6 million from S$25.4 million, mainly due to better progress in construction works, the group said in a bourse filing on Friday (Mar 10).

The company’s cost of sales rose 22.2 per cent to S$26.1 million, from S$21.3 million.

Other operating expenses also shot up, by 26.6 per cent to S$2.7 million from S$2.2 million. Sysma explained that this was mainly due to an increase in foreign exchange losses, a result of the weakening of the US dollar against the Singapore dollar.

The Catalist-listed business said it expected the uncertain external environment to “negatively impact high indebtedness”, adding that it would be cautious and prudent with cash management and liabilities going forward.

Nevertheless, it said that it would continue to keep a lookout for suitable opportunities across all its segments to grow its business strategically.

No dividend was declared or recommended for the financial period ended Jan 31, 2023, “to conserve cash for the challenging environment ahead”, said the group.

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Shares of Sysma Holdings closed flat at S$0.128 on Friday, before the announcement.