Chasen Holdings falls in the red but expects to be profitable this year

SINGAPORE - Chasen Holdings has reversed into the red, both for the fourth quarter and full year.

The company said it made a net loss of S$2.2 million and S$1.5 million for the three months and 12 months to March 31, respectively.

Fourth quarter revenue was flat at S$25 million. For the full year, revenue fell by 5 per cent to S$93.5 million.

Revenue from its specialist relocation business segment and third party logistics business segment fell by S$4.8 million and S$600,000 respectively while technical and engineering business segment inched up by S$100,000 during the year.

The lower revenue was mainly due to generally slowing economic conditions thataffected the markets that the group operated in, said Chasen in a statement on Sunday (May 29).

Meanwhile, gross profit margin for the year slipped to 18.3 per cent from 20.9 per cent, as a result of intense competition in a slowing economic environment.

Fourth-quarter loss per share amounted to 0.7 cent against earnings of 0.53 cent previously while net asset value per share shrank by 4 cents to 18.4 cents.

Looking ahead, Chasen noted that the pace of execution of specialist relocation projects in China picked up during the quarter under review and is expected to flow through into the new financial year.

Specialist relocation projects are also expected to commence in other markets.

"Our third-party logistics business in Malaysia shows continued robustness especially with its expansion into the Thai and Indochina markets," said Chasen.

The technical and engineering business segment is expected to increase its revenue contribution in the new financial year despite challenges in the market place.

Barring unforeseen circumstances, Chasen expects to return to profitability in the new financial year.

A decision on whether to pay a final dividend will be announced later.

Last year, Chasen paid a final dividend of 0.1 cent a share.