HSR Global reveals 4 culprits to a looming profit loss

Versus total gains of S$0.47m last year.

According to a release, following a preliminary assessment of the financial results for FY2012 for HSR Global, the Board of Directors of the company announced that the group is expected to report a consolidated net loss for FY2012 (compared to a consolidated net profit of approximately S$0.47million for the financial year ended 31 December 2011) mainly due to the reasons as follows:

1. Start-up losses from new business units established in the second half of the financial year to broaden the Group’s revenue streams;
2. Impact of the softer property market which has resulted in reduced commission income;
3. Increased operating costs arising mainly from higher staff costs including the realignment of executive directors’ remuneration to market levels and investment in a new senior manager to spearhead the broadening of the Group’s revenue streams; and
4. One-off retrenchment costs incurred in relation to the disposal of the electroplating business of the Group in March 2012.

Nevertheless, the Group’s balance sheet remains healthy, with a healthy cash position to fund the Group’s operations.

The information in this announcement is based on an assessment of the management accounts of the Group and such information has not been audited or reviewed by the Company’s auditors.

Further details in respect of the Group’s FY2012 financial results will be announced no later than 1 March 2013.