Serrano says it expects to post a net loss for FY2015 ending Dec 31, which it attributes to the performance of its interior fit-out business.
This business segment saw a cost overrun for projects mainly due to an increase in labour sub-contracting costs resulting from labour shortage and reworks undertaken as well as additional costs incurred for defect rectifications.
In addition, the segment’s write-off of overdue retention sums and claims for variation orders were not approved.
The anticipated net loss for FY2015 may potentially subject the group to a certain technical breach of a covenant in its banking facility agreements. The group says it is currently in discussions with the lender in relation to resolving this matter.
Meanwhile, the group has been awarded new interior fit-out contracts with contract values of approximately in $11.6 million. The projects are estimated to be completed in 2016 and are not expected to have a material impact on FY2015 earnings.
Shares in Serrano closed 5.8% lower at 6.5 cents.
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This business segment saw a cost overrun for projects mainly due to an increase in labour sub-contracting costs resulting from labour shortage and reworks undertaken as well as additional costs incurred for defect rectifications.
In addition, the segment’s write-off of overdue retention sums and claims for variation orders were not approved.
The anticipated net loss for FY2015 may potentially subject the group to a certain technical breach of a covenant in its banking facility agreements. The group says it is currently in discussions with the lender in relation to resolving this matter.
Meanwhile, the group has been awarded new interior fit-out contracts with contract values of approximately in $11.6 million. The projects are estimated to be completed in 2016 and are not expected to have a material impact on FY2015 earnings.
Shares in Serrano closed 5.8% lower at 6.5 cents.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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