Blame it on severe, irrational market competition.
BRC Asia’s FY15 profit plummeted to $15.4m, reflecting a sharp 40% YoY drop.
The main reason for the plunge was increasingly severe and irrational market competition arising from much greater reinforcing steel supply built up during the recent construction boom chasing after relatively fewer jobs amid an ongoing real estate downturn, stated BRC’s Group Managing Director Lim Siak Meng in the company’s annual report.
Lim also noted that the company’s overall expenses for the year fell 19.5% to 18.4m, from $22.9m a year earlier.
He stated that although distribution costs inched up 5.8% YoY to $5.5m due to the heightened uptake of prompt payment discounts by customers, and finance costs were up 25.1% YoY on back of interest expenses relating to trade bills and convertible bonds, it was more than offset by lower personnel costs, share options expense and a smaller provision for doubtful debts.
Notwithstanding the tumultuous year, BRC’s balance sheet stood with net assets of $167.9 million as at 30 September 2015, Lim asserted.
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