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Vallianz, USP Group warn of fiscal 2019 net losses
CATALIST-LISTED Vallianz Holdings and mainboard-listed USP Group have each warned that they expect net losses for the fiscal year ended March 31, 2019.
Vallianz Holdings is likely to post a “significant” full-year net loss, as a result of expected non-cash impairment expenses for certain assets, the offshore support vessel provider announced in a bourse filing on Monday night.
Vallianz said that these expenses came to light after it completed an in-depth evaluation of the carrying value of those assets - which comprise fixed assets and investments - amid “continued challenges and slow recovery” in the offshore and marine market.
However, excluding these non-cash impairment expenses, the company expects to report operating profits for FY2019.
Vallianz will release its unaudited full-year financial results on May 30.
Its shares closed flat at 14.9 US cents on Monday.
Meanwhile, mainboard-listed USP Group said on Tuesday morning that it expects to record a net loss for FY2019 ended March 31, based on a preliminary review of the unaudited financial results.
USP will announce its FY2019 results by May 30.
It sank into the red with a net loss of S$380,000 for the third quarter ended Dec 31, 2018, compared to a net profit of S$806,000 a year ago.
USP is on the Singapore Exchange’s watch list. Its single-largest shareholder parted with all her shares and resigned from the board in March this year. The company is involved in oil trading, biofuel engineering and consultancy, property development, and marine equipment trading.
USP shares last changed hands in the market at 7.5 Singapore cents on May 16.
Both Vallianz and USP advised shareholders and investors to exercise caution when dealing in their securities.