SINGAPORE (Nov 29): Prefabricated steel reinforcement specialist BRC Asia saw its earnings tumble 75% to $2.1 million for the full year ended September, down from $8.3 million a year ago.
Revenue fell 10% to $311.6 million in FY17, from $346.8 million a year ago, despite higher selling prices. This was due to lower volume of steel delivered as a result of weaker construction demand.
Gross profit decreased 29% to $20.3 million in FY17, from $28.7 million a year ago, due to reduced sales volume and lower gross profit margin.
BRC Asia also incurred a loss of $1.4 million in FY17 from its share of results of an associate, Pristine Islands Investment.
As at end September, cash and cash equivalents stood at $24.0 million.
Looking ahead, the group says it expects a challenging and volatile market environment ahead.
Shares in BRC Asia has been suspended from trading after a takeover bid ended with the offeror controlling a 95.83% stake in the company, leaving the stock with a public float of just 4.17%, below the 10% minimum to be traded on the Singapore Exchange.
The counter last traded at 90 cents on Oct 27.