SINGAPORE - Waste management and horticultural services firm, 800 Super Holdings, reversed into the red for the fiscal fourth-quarter on the back of higher expenses.
For the three months ended June 30, the group registered a net loss of $1.65 million, versus a net profit of $2.72 million last year.
Loss per share stood at 0.93 cent, from an earnings per share (EPS) of 1.52 cents in the year-ago period.
Revenue also fell 1.8 per cent to $37.9 million, mainly due to the completion of term contracts, and the renewal of certain contracts at more competitive prices, 800 Super said.
A final cash dividend of $0.01 per share has been proposed for fiscal 2018, subject to shareholders' approval, versus a dividend of $0.03 per share for the preceding year.
For the full year, net profit fell to $9.2 million, down 46.5 per cent from $17.1 million a year earlier, as revenue slipped 3.7 per cent to $151.1 million.
On a per share basis, earnings came in at 5.12 cents for the 12 months ended June 30, down from 9.58 cents for the previous year.
Notably, purchase of supplies and disposal charges rose 42.6 per cent to $7.8 million for the fourth quarter, and was up 13.5 per cent to $26.9 million for the full year. This was mainly attributable to higher production levels for the group's plastic recycling plant, the acquisition of Iwash Laundry (Senoko) consolidated into the group for Q2, as well as higher fuel costs, 800 Super said.
It also noted that the industry it is operating in is "highly competitive", with the group having to compete based on the range and quality of its services provided, timeliness of service delivery, and pricing.
In addition, the development of its sludge treatment facility at Tuas South is now undergoing testing and commissioning. According to the company, the facility has started to treat sludge from water reclamation plants operated by the Public Utilities Board, and is slated to be fully operational by December.
Barring any unforeseen circumstances, the group expects to remain profitable for the next financial reporting period.
As at 3.15pm on Tuesday, the counter was trading at 83 cents apiece, down 17 cents, after the release of its financial results.