Addvalue Technologies posts wider FY2018 loss, lower net asset value after audit

SINGAPORE - Addvalue Technologies reported a wider loss for the financial year ended March 31, 2018, after its financial results were audited, in a regulatory filing on Saturday (July 7).

Compared to its unaudited results announced on May 30, 2018, Addvalue's FY2018 loss after tax widened to US$12.8 million, 14.8 per cent higher than the US$11.1 million reported. Total equity fell 18 per cent to US$7.5 million from the US$9.1 million reported.

The adjustment was due mainly to further adjustments relating to the write-down of deferred tax assets of certain subsidiaries. This gave rise to deferred tax liabilities, as development expenses claimed under the income tax computations should have been recognised in FY2018, but were erroneously omitted from the announced results.

Due to this, the basic loss per share worsened to 0.73 US cent, compared to 0.64 US cent based on the unaudited results.

As a result of the reduction in total equity, Addvalue's net value asset per share as at March 31, 2018 fell to 0.42 US cent from 0.52 US cent.

In a separate announcement, Addvalue gave notice that it has recorded pre-tax losses for the three most recently completed consecutive financial years, based on audited full year consolidated accounts, and that its six-month average daily market capitalisation as at July 6 is $70.2 million.

The company drew investors' attention to Rule 1311(1) of the Listing Manual, under which the Singapore Exchange will place an issuer on a watch list if it records such pre-tax losses and has a six-month average daily market cap of under $40 million. It said it will make an immediate announcement if notified by the Singapore Exchange that it will be placed on the watch list.

Addvalue Technologies last closed at 3.3 cents on July 6.