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Sysma's profit drops close to 69% for H1 FY16
CONSTRUCTION services provider Sysma Holdings reported a near 69 per cent drop in net profit to S$499,000 for the six months ended Jan 31, 2016, dragged down in part by higher costs.
This was despite a near 18 per cent year-on-year rise in revenue to S$68 million.
Cost of sales, on the other hand, shot up about 20 per cent to almost S$64 million. This was due to higher cost of sales for its construction projects and property development projects.
During the period under review, earnings per share clocked 0.19 Singapore cent, down from 0.61 cent a year ago.
"The group's construction business remains stable, and the management will continue to actively identify good projects to maintain its pipeline of construction projects. While margins remain under pressure due to inflation in materials and labour costs, it will continue to focus on timely project execution and improving efficiency to manage costs," it said.
And while its property development business continues to operate in a difficult environment, it has made further progress in the sales of its development projects, Sysma added.
As at Jan 31, the group's property development projects at 28 RC Suites and 8M Residences have been "substantially sold". The group is trying to push sales for Charlton 18.
"With the three development projects expected to receive their temporary occupation permits by the end of this calendar year 2016, the group will continue to focus on its marketing strategies to improve sales," Sysma added.