It attributes the decline in profit to the subdued sentiment brought about by an uncertain business climate.
According to its press release, Sunningdale was burdened with rising labor costs and pricing pressure from customers. The company also recorded foreign exchange losses worth $3.1m due to the volatility of the US dollar.
Sunningdale has also reported one-off retrenchment costs of $0.1m.
Despite the slowdown, Sunningdale reports an 9.1% increase in revenue YoY to $188.1m as it posted growth across all segments. Its mould fabrication segment led the pack as it posted 35% growth YoY to $36m followed by the automotive segment which grew 2.5% YoY to $63.2m, the healthcare segment which grew 6.2% YoY to $12.1m and the consumer/IT segment which grew 5.6% YoY to $76.9m.
DBS Group Research notes that Sunningdale turned in slightly disappointing numbers as its growth came in below expectations but remains optimistic as its sales momentum is on an upward trajectory across all segments.
Analyst Carmen Tay adds that forex volatility and global economic slowdown pose the greatest risks to Sunningdale this financial year.
Do you know more about this story? Contact us anonymously through this link.