Stratech Group's FY2015 earnings down 49.9%

Singapore

STRATECH Group's net profit for FY2015 fell 49.9 per cent from S$1.5 million to S$732,000 despite revenue rising 48.29 per cent, from S$11.1 million to S$16.5 million.

This was largely due to higher non-recurring administrative expenses, which increased from S$4.5 million in FY2014 to S$5.7 million in FY2015. This was mainly attributed to professional fees, including, among others, the one-off fees and related costs in relation to the recently concluded group restructuring exercise amounting to about S$0.60 million and staff costs of S$0.32 million in line with higher level of business activities during the year.

Meanwhile, the group succeeded in securing several new contracts in FY2015. These include a contract to deploy its iFerret system at Hong Kong International Airport and the contract to upgrade the existing iFerret system at Singapore Changi Airport.

"We expect these two contracts to contribute to our FY16 earnings," said executive chairman David Chew.

"The market has woken up to iFerret and the use of modern technology for more effective airfield/runway surveillance, so foreign objects and debris (FOD) detection is now taking off rapidly."

For Q4, the group recorded revenue of S$6.01 million and net profit of S$2.42 million, against revenue of S$1.32 million and net loss of S$1.82 million for the quarter in Q3. The group's net assets stood at S$6.57 million as at March 31. Its counter ended trading up 0.2 Singapore cent, at 4.5 Singapore cents.