Energy-saving appliance supplier TrickleStar Limited reversed its losses, posting earnings of US$506,711 ($696,733) for 1HFY2020 ended June 30, 2020.
The Catalist-listed company on the Singapore Exchange (SGX) cleared its losses of US$298,836 from this time last year, owing to some US$1.6 million in administrative expenses incurred then. Some US$1.2 million was incurred in net listing expenses during the company’s initial public offering on June 18, 2019. Administrative expenses decreased by 55.3% y-o-y US$0.75 million in 1HFY2020.
Earnings per share increased to 62 US cents from negative 0.37 US cents last year.
Revenue dipped slightly by 1.3% y-o-y, or US$0.08 million, to approximately US$6.50 million in 1HFY2020, owing to the impact of the Covid-19 pandemic on demand, says the company in its results statement on August 5.
“After a strong start to 2020, our Group noticed an easing of demand in more recent months, which we believe would have been experienced throughout our industry. Home energy assessments, an important part of our business, inevitably have been disrupted by people’s need to socially distance and we must expect this disruption to continue until a true resolution to the Covid-19 virus is found.”
TrickleStar Limited was incorporated in Singapore on October 31, 2018, as a private limited company. It designs and supplies energy-saving products for homes and workplaces, such as its patented Advanced Powerstrips, load controllers, energy meters, energy monitors and surge protectors.
Cost of sales increased by 1.2% y-o-y, or US$0.05 million, resulting in a lower gross profit margin of 27.2% for 1HFY2020, compared to 28.9% in the same period last year. The company cites the increase of US tariff imposed, from 10% to 25%, starting from May 2019 and non-recurring engineering costs incurred in 1HFY2020.
“The Group continues to exercise cost monitoring and progressively outsourcing the manufacturing of the Group’s products to independent contract manufacturer with facilities in Malaysia, a country that is not subject to tariffs on exports to US,” says the company.
Other income increased by US$6,520 to US$9,098 in 1HFY2020. This was primarily due to a net increase in foreign exchange gain, amounting to US$6,214 in 1HFY2020.
Cash and cash equivalents were approximately US$4.27 million as at June 30, 2020, a slight dip from US$4.29 million in 1HFY2019.
On July 1, the company incorporated PlugLoad Pte Ltd, a new wholly-owned subsidiary in Singapore. PlugLoad has an initial issued and paid-up share capital of S$300,000 comprising 30,000 ordinary shares.
“It is intended that PlugLoad will explore opportunities in the growing energy saving segment, which may include opportunities to export to other countries besides USA. The incorporation of PlugLoad was funded by IPO net proceeds and as such, is not expected to have any material impact on the net tangible assets per share or earnings per share of the Company and Group for the current financial year ending December 31, 2020,” says the company.
No dividend has been recommended for 1HFY2020, owing to uncertainty surrounding the Covid-19 pandemic.
“As there are significant uncertainties in assessing the duration of the pandemic and its impact, the Group’s current key priority is to preserve cash to support working capital requirements and product development until the Covid-19 situation improves. Furthermore, the Company remains in a retained loss position, therefore, the Board will not be recommending any interim dividend for HY2020,” says the company.
Shares in TrickleStar closed flat at 35 US cents (48 Singapore cents) on August 5.