Slower Indonesian marine and coal industry growth has affected Singapore-listed marine engine maker XMH Holdings’ performance for financial year (FY) 2015.
XMH posted a net profit of SGD5.43 million (USD4.02 million) for FY 2015 that ended on 30 April 2015, down 11.4% from SGD6.13 million in FY 2014.
The lower profit was accompanied by a decline in revenue, which inched down by 13% to SGD91.5 million in FY 2015 from SGD105.2 million in FY 2014. The decrease was primarily due to lower revenue contribution from both the distribution and after sales business segments, which stood at approximately SGD29.7 million.
Meanwhile, the company also recorded an increase in operating expense by 30.6% year on year at SGD20.9 million in FY 2015, largely due to the effects of its wholly owned subsidiary Mech-Power Generator (MPG)’s amortisation of intangible assets and the inclusion of the newly acquired subsidiary.
The company, in its filing to the Singapore Exchange, stated that the “uncertainty in macro environment factors” has impacted XMH’s distribution business.
“Though we foresee the slow economic situation in Indonesia may continue to affect us in the coming months, we will endeavour and explore opportunities to continue securing new contracts,” said Elvin Tan Tin Yeow, chairman and CEO of XMH.
He noted that the company has experienced delay of orders and deferment of collections from its customers in the past year because of the challenging market condition.
XMH expects to move into its new seven-storey facility at Tuas, Singapore, in the last quarter of 2015. The new facility will accommodate all XMH’s subsidiaries and production lines, and increase the company’s general warehousing capacities.