VibroPower warns of FY19 loss; unit seeks to recover S$1.7m loan

VIBROPOWER Corporation, which manufactures power generator sets, does not expect to report a profit for the full year ended Dec 31, based on a preliminary assessment of the group's unaudited financial results for FY2019.

The loss will be mainly attributable to lower sales recognised in the second half of the year, watch-listed VibroPower said in a profit guidance filed on Thursday night.

In a separate announcement on the same day, the group said that its wholly-owned subsidiary VibroPower Pte Ltd has filed a writ of summons in the Singapore High Court against an unnamed former business partner of the group, relating to sales of generators in the oil and gas market.

The subsidiary is looking to recover a loan it had made to the business partner. Including accrued interests and costs, the outstanding amount totals about S$1.7 million.

The business partner's sole director and shareholder is the guarantor for the loan.

VibroPower shares were trading at S$0.105 on Friday as at 9.18am, down 0.3 Singapore cent or 2.8 per cent.