Blame the one-off IPO expenses.
Engineering services provider Acromec has ended the year on a sad note as it swung into a net loss of $0.58m.
The group said it would have ended the year with a $0.1m gain if not for the one-off IPO Expenses. However, this supposed gain was still below the $3.4m profit from a year a go. Despite this, its revenue for the year increased by 23% or $8.1m to $43.5m as compared to $35.4m last year, mainly contributed by the Engineering, Procurement and Construction business segment.
"The increase in revenue was due to increased business activities on execution of the Group’s major projects, which stemmed from a strong order book," the group said.
With this came a 38% increase in cost of sales to $38.4m.
The group was also faced with execution difficulties and complexity on two of its healthcare projects where the projects’ adjacent critical facilities were running at full scale operations. This has hampered productivity and the resultant escalation of costs.
Looking forward, the group continues to see activities in the sectors, albeit at a slower pace.
"The Group sees opportunities in the healthcare sector in the long term, buoyed by the Government’s major plans to increase infrastructure spending through building new hospitals and medical facilities and refurbishing existing ones so as to cater to Singapore’s ageing population. Likewise, the biomedical, research and academia sectors is expected to grow on the back of the Government’s initiatives to encourage and facilitate research and development activities," the group noted.
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