SINGAPORE (May 9): The Trendlines Group posted losses of US$1.3 million ($1.7 million) for the 1Q ended March, improving some 22.7% from losses of US$1.7 million a year ago on the back of lower expenses.
Total income in 1Q18 was halved to US$0.6 million, from US$1.2 million a year ago, primarily reflecting a reduction in the fair value of its portfolio companies.
Trendlines registered a loss in fair value of investments in portfolio companies of approximately US$1.2 million in 1Q18, compared to a loss of US$0.7 million a year ago.
This was mainly due to the completion of fund raising exercises at less favourable terms to the company, and general commercial or technological challenges with some portfolio companies during the quarter.
In 1Q18, the group also suffered a write-off of one portfolio company as a result of lack of funding for this company.
Total expenses fell 25.7% to US$1.9 million in 1Q18, from US$2.6 million a year ago.
The decrease was mainly attributable to reductions in employment costs and other general and administrative budget cutting as part of the group’s cost reduction plan announced in October last year.
As at end March, the group’s total current assets and fair value of portfolio stood at US$18.0 million and US$97.4 million, respectively.
"Our first quarter financial results demonstrate a 25% reduction in our net operating costs, compared to the first quarter of last year, a result of our commitment to the plan’s implementation. We continue to monitor our cash flow and expenses closely,” says Trendlines’ chairman and CEO Steve Rhodes.
Shares of Trendlines closed 0.2 cents lower at 13.2 cents on Wednesday.