Tee International swings into red with S$4.1m net loss in Q3

TEE International sunk into the red with a net loss of S$4.1 million for its third quarter ended Feb 29, 2020, compared with a net profit of S$435,000 a year ago.

Cost of sales increased by S$5.1 million in the infrastructure businesses and engineering projects, resulting in an overall gross loss position, the mechanical engineering company said in a bourse filing late Tuesday evening.

Based on continuing operations, the group's loss per share stood at 1.79 Singapore cents, compared with earnings per share of 0.32 cent in the year-ago period.

Revenue for Q3 fell 1.9 per cent to S$100.7 million from S$102.5 million a year ago, due mainly to lower revenue from its infrastructure business.

No dividend was declared for the quarter, unchanged from a year ago.

On March 5, Tee said it had removed its chief executive officer (CEO) Phua Chian Kin from his post and revealed he had been interviewed by the Commercial Affairs Department for an offence under the Penal Code, Chapter 224.

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Mr Phua had earlier admitted to taking company funds to repay his own debts and satisfy margin calls between July 2018 and October last year.

Following its CEO's removal, the company said it has implemented a slew of measures to tighten internal control policies and raise its level of corporate governance.

Tee International shares closed up 0.1 Singapore cent or 4.3 per cent to 2.4 cents on Tuesday.