Cosmosteel notes 3 years of losses, at risk of joining SGX's financial watch list

Cosmosteel Holdings was placed on SGX's watch list in June 2017.
Cosmosteel Holdings was placed on SGX's watch list in June 2017.PHOTO: ST FILE

SINGAPORE - Piping systems provider Cosmosteel Holdings said on Sunday (Dec 17) night that the firm had recorded three consecutive years of losses and might be placed on Singapore Exchanges' (SGX) watch-list for failing to meet the bourse's financial criteria.

A company will be included in the watch-list if it records pre-tax losses for three most recently completed consecutive financial years, and has an average daily market capitalisation of less than S$40 million over the last six months.

Cosmosteel's latest six-month average daily market capitalisation stands at S$36.3 million, S$3.7 million short of the bourse's requirement.

In June this year, the firm was placed on SGX's watch-list for failing to meet the minimum trading price criteria of maintaining a volume-weighted average price of at least 20 Singapore cents, and a market capitalisation of at least S$40 million over the last six months.

The company recorded a fourth-quarter net loss of S$6.6 million, reversing a net profit of S$1 million a year earlier. Revenue plunged 44.3 per cent to S$13.5 million in the three months to Sept 30, mainly because of a decrease in turnover from customers in the energy sector due to the oil supply glut, Cosmosteel said.

The counter last traded 5.085 per cent lower at 11.2 Singapore cents apiece on Friday. Some 141,000 shares changed hands.