Libra Group's profit falls 52.5% to $0.76m

Blame the lower mechanical and electrical engineering revenue.

Singapore-listed firm Libra Group reported a 30.2% decline in revenue to $30.8m and a 52.5% fall in profits to $.076m.

According to OCBC Investment Research, this is due to the lower mechanical and electrical engineering (M&E) revenue by 42% to $18.3m and the lower manufacturing revenue by 20% to $6.0m,

This is offset by higher revenue from building and construction solutions (B&C) segment which increased by 25% to $6.5m on the back of increasing project realisation.

As a result, gross profit was also lower with a slightly lower gross profit margin of 18.3% vs. 19% in 1H16.

Due to lower bonus and incentives incurred during the year, administrative expenses decreased 25%.

There was also a slight increase in ‘other income’ to $1.0m due to a gain on disposal of a factory in Ang Mo Kio.