Acma seeks trading halt, flags errors in earnings report

Acma shares had jumped four cents to 32 cents prior to the halt, after the initial set of financial results showed the company had a net profit of $2.8 million in the three months ended Dec 31 last year.
Acma shares had jumped four cents to 32 cents prior to the halt, after the initial set of financial results showed the company had a net profit of $2.8 million in the three months ended Dec 31 last year.PHOTO: ST FILE

Minor errors linked to SGX-listed firm's quarterly, full-year figures

Singapore-listed Acma called for a trading halt yesterday afternoon after its share price had surged more than 14 per cent.

The group, which makes molds and precision plastic components for the automotive market, later announced a corrigendum - a series of corrections - on its earnings report released earlier in the day.

As it turned out, the errors were fairly minor and related to both the quarterly and full-year figures for net profit and earnings per share.

Acma shares - set to resume trading this morning - had jumped four cents to 32 cents prior to the halt, after the initial set of financial results showed the company had returned to the black with a net profit of $2.8 million in the three months ended Dec 31 last year, compared with a net loss of $39.2 million previously.

In its correction, net profit for the quarter was a little less at $2.7 million. Revenue - not the subject of the corrections - jumped 50.4 per cent to $33.2 million, thanks largely to sale contributions of $5.1 million from Xenon, a $4.9 million rise in turnover from the tooling and injection molding business, and a $1 million increase in turnover from the communications, electronics and equipment distribution business.

Net profit for the full year came in at $1.2 million - rather than $1.4 million in the original - an improvement over the $39 million net loss previously, while revenue climbed 6.3 per cent to $76.4 million.

Earnings per share for the quarter was 6.3 cents, a marked turnaround from the loss per share of 92.5 cents previously.

  • AT A GLANCE

    NET PROFIT: $2.7 million (Not meaningful)

    REVENUE: $33.2 million (+50.4%)

    DIVIDENDS: None

Net asset value per share stood at 80 cents as at Dec 31, higher than the 75 cents at the same time a year ago.

Acma said the near-term outlook for the group is likely to remain challenging, particularly in view of the prevailing global economic uncertainties, which may continue to dampen business sentiment.

"We anticipate having to deal with continued price pressures from our customers, the intensifying competitive landscape as well as rising costs in China where our tooling and injection molding operations are based."

The group added that it will continue to "rationalise" its manufacturing operations to maintain competitiveness.

A version of this article appeared in the print edition of The Straits Times on March 03, 2017, with the headline 'Acma seeks trading halt, flags errors in earnings report'. Print Edition | Subscribe