SINGAPORE (March 1): MMP Resources, the construction company on the Watchlist of the Singapore Exchange, reported earnings of $4.7 million for the FY16 ended Dec, reversing from the net loss position of $43.7 million in FY15.

This was mainly due to the reversal of two loans payable amounting to $5.22 million.

MMP Resources says preliminary forensic investigations found no evidence to prove that it is liable for the alleged loans made by the company in 2014 and early 2015.

As the nature of the funds cannot yet be determined, the company has recorded the amount payable as a contingent liability until further notice.

Taking that into account, the group recorded total revenue of $1.62 million for FY16. This was an increase of 62% compared to $1.0 million for FY15. It also achieved a gross profit of $1.6 million compared to a loss of $0.27 million.

Total cost of sales for FY16 fell by 98% to $0.021 million compared to $1.27 million in FY15.

This was mainly due to the decrease in power generation related business in FY16 and an increase in management-related consultancy services in FY16.

Administrative expenses fell by 63% to $2.07 million in FY16 largely due to the decrease in professional fees, directors’ fees and remuneration.

Cost of sales also fell by 98% to $210,000 in FY16 from $1.27 million in FY15 mainly due to the decrease in power generation related business and an increase in management related consultancy services.

In its outlook, the group says its strategy is to focus on construction opportunities, asset acquisitions and brand growth in Tier-1 markets with a specific focus on travel, hospitality and leisure (THL) industry.

Paul Crosio, Executive Director of MMP Resources, said: “The group’s 2016 full-year results showed a marked improvement over that of FY15 where losses of $43.74 million were recorded. The operations of the Chisenupuri Ski Area have just started in Jan 2017 and it coincides with the commencement of the ski season. We are pleased that our wholly-owned subsidiary, MMP Resources Japan K.K., which jointly operates the Chisenupuri Ski Area with JRT Trading, recorded its maiden profit of $0.041 million after its first month of operations in January.

Shares of MMP Resources closed at 0.4 cent on Wednesday.