SINGAPORE (March 1): Advance SCT, the metal trader and recycling & waste management company, saw FY16 losses narrow by a third to $8.3 million from $12.3 million a year ago.

Placed on the SGX watchlist since March 4, 2015, Advance SCT says it has managed to terminate its 2011 scheme of arrangement and restructure itself into a “leaner entity, with much reduced debt and lower operating expenses”.

Amid a challenging business environment, FY16 group revenue increased nine-fold to $46.8 million from $5.2 million a year ago due to significant revenue and profitability generated by the trading of copper products at the operating level.

However, cost of sales grew accordingly to $46.4 million from $5.2 million during FY16, while loss from operations widened 12% to $8.3 million from $7.4 million.  

In a Wednesday filing to the SGX, Advance SCT says although it is a net current liabilities position, the bulk of its current liabilities including an arbitration award made against the company, have been contained in a proposed scheme of arrangement which it is waiting court sanction on May 8.

And until a final decision with regards to the scheme is made by the Court, all creditors are restrained from taking legal action against the company.

(See also: Advance SCT collaborates with consulting firm to turn company around)

It adds that it is considering inorganic growth through the acquisition of companies in the familiar metal industry, and also intends to raise fresh cash to boost its working capital within the next 12 months.

Advance SCT shares have been suspended from trading since Jan 12.