SINGAPORE (Jan 29): In a rare piece of positive news amid the wider gloom plaguing the market, Acromec has reported that it is in “advanced discussions” to win a potential “material contract”.

The contract will be for a client that is building a medical facility in Singapore.

“The discussions with the aforesaid party are still ongoing,” states executive chairman and managing director Lim Say Chin (picture) in an SGX announcement on Jan 29. 

“The Board wishes to highlight that there is no certainty or assurance that the discussions will materialise into any definitive contract,” Lim adds.

Acromec is a specialist engineering services provider. It helps install equipment in controlled environments operated by customers in healthcare, pharmaceutical, biomedical science, research and academia, and electronics sectors.

For the year ended Sept 30 2019, the company recorded revenue of $31.9 million, down 23% y-o-y. However, due to better project management, Acromec was able to improve its gross margins from 7% to 19%, and despite the lower revenue, it reported earnings of $30,000, reversing from a loss of $3.4 million suffered in the preceding year. 

On Nov 15, the company announced that it won a $5.12 million contract to fit out a laboratory at Biopolis, bringing its total order book to some $28 million.

On Jan 29, Acromec shares closed at 11 cents, up 8.08% for the day. 

The possible contract win was announced by the company after market closed for the day.

Year to date, Acromec shares have gained 37.5%, valuing the company at 14.83 times.

At Jan 29 close of 11 cents, Acromec is valued at 486.36 times historical earnings.