Wednesday, September 30, 2015

Xpress no longer in negative working capital position but still mired in losses

Printing company Xpress Holdings says it is no longer in a negative working capital position as at July 31 and has settled all its outstanding debts.

This was after the group successfully completed the share placement on July 24 to the current Executive Chairman Ma Wei Dong.

Xpress also says it has also fully settled its bank borrowings with the exception of an overdraft facility that is backed by a bank fixed deposit of the same amount.

As at end July, the group held cash and cash equivalents of $3.3 million.

Still, it may take a while for the group to swing back into the black.

For the 4Q ended July, Xpress posted a net loss of $0.17 million, down from the net loss of $142.4 million a year ago.

Total revenue fell 34.7% to $1.69 million mainly due to lower revenue contribution from its local and overseas operations.

Xpress says the intense competition amidst a shrinking market has continued in the Singapore and China markets.

At the same time, new digital printing technology has replaced a significant portion of the demand in the traditional offset printing segment.

Xpress closed 5.3% lower at 1.8 cents on Tuesday.

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