ICP books $800,000 net loss in H1

On back of weak revenue, skyrocketing costs.

ICP Limited closed the first half of FY16 with a $800,000 net loss as the company was battered by the one-two punch of weak revenue and climbing expenses.

According to the company’s announcement, ICP’s revenue sank by a staggering 55.4% YoY to $1m in 1HFY16, compared to $2.2m from corresponding period in FY15. The company cited the $1.2m pullback in ship chartering fees as a result of conversion of the charter arrangement from time charter to bareboat charter, and a revision in the charter rate.

As a result, the cost of sales took a 49.6% YoY nosedive to $700,000 in the half-year, after incorporating $200,000 in amortisation of drydocking expenditure.

Other operating income also saw a pullback of $200,000 due to the absence of special employment credit grant and productivity and innovation credit cash payout on qualifying expenditure in H1. On the flip side, finance income generated from placement of fixed deposits remained fairly consistent.

Meanwhile, operating costs soared 43.6% to $1.1m on back of personnel costs for ICP’s new business segment in hospitality. Finance costs also grew, jumping by $300,000 due to the spiked interest cost incurred on term loans following the refinancing of two vessels in FY15.