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Novo Group's full-year loss narrows to US$16.3 mil
30 Jun 2016, 01:13 pm
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SINGAPORE (June 30): Novo Group, the steel trader and tin plate manufacturer, is still mired in the red as it ponders its next business.

For the FY16 ended April, the group posted full-year losses of US$16.3 million ($22 million), down  from losses of US$20.6 million in FY15.

In FY16, group revenue fell 55.2% to US$101.2 million from US$225.9 million a year ago as the group discontinued its tinplate processing business this year by disposing all its 50% equity interest in Novo Tianjin, which the group says “has been making losses for some time”. Tinplate manufacturing contributed revenue of $2.1 million.

In 2015, Novo saw a change in ownership after a successful takeover by Golden Star Group which is owned by an investment holding firm solely owned by Zhu Jun, an executive director and chairman of e-commerce company GNet Group plc.

In a separate filing, Novo says it will take active steps to remove itself from the SGX Watch-list and is aware of the Sept 3 deadline given by the latter for its removal from the list.
Although 4Q16 gross profit rose 153% to US$1.6 million from a loss of US$3 million a year ago and gross profit margin also increased to 1.6% from –1.3%, the group is aware of the current market condition and “endeavour to overcome the challenges”.

Novo’s new management looking to diversify from its remaining businesses in steel trading and tinplate manufacturing, and may be considering other industry sectors such as IT or the financial related sector. No specific investment targets have yet been identified.

Shares of Novo last traded at 38 cents on June 22.

 

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