Aztech Group records turnover slump of 10.7% to S$56.85m

The Group also registered a net loss of S$3.80 million in 3Q2011.

In a release, Singapore Exchange Mainboard-listed Aztech Group Ltd announced its third quarter (3Q2011) and January to September FY2011 (Jan-Sep FY2011) financial results for the period ended 30 September 2011.

For 3Q2011, the Group recorded a turnover of S$56.85 million, a 10.7% decline over the same period last year. In the quarter, the Group registered a net loss of S$3.80 million  (3Q2010: net profit of S$1.61 million). The loss was attributable to the increase in  unrealised exchange loss of S$2.22 million due to the sudden appreciation of the US dollars in the month of September 2011. In addition, the operating costs of the Group’s Marine Logistics segment went up by S$1.49 million resulting from additional expenses incurred in gearing up its operations for a newly awarded contract.

For the 9-month period ended 30 September 2011, the turnover for the Group was S$157.87 million, a 1.7% decline compared to the previous corresponding period. The net loss for Jan-Sep FY2011 was S$23.43 million with the impairment loss of S$19.40 million on vessels recognised in 1Q2011 compared to the net profit of S$4.30 million for the same period last year.

The Group saw a 28.4% decline in its Electronics business to S$44.90 million in 3Q2011, due to weaker demand from customers attributable to uncertainty of the global economic outlook. However, it is to be noted that the Electronics segment would have remained profitable in 3Q2011 without the unrealised exchange loss described above.

The Materials Supply sector saw an increase in revenue of S$11.21 million associated to the new contract of supplying infrastructure materials.