SINGAPORE (Aug 25): Metech International, the e-waste management solutions provider, has swung back into the black in FY17.
For the 12 months ended June, the group reported a net profit of $0.87 million compared to a loss of $7.1 million a year ago.
Full year group revenue trebled to $120.5 million from $40.6 million a year ago. Sales from E-Waste Management (EWM) rose 29.3% to $31.8 million while sales from Supply Chain Management (SCM) surged more than fivefold to $120.8 million from $41.9 million.
In its outlook, Metech says gold and silver prices seemed to have stabilised over the last three fiscal years. This will be good for the EWM and SCM businesses going forward.
However, the strong upswings in palladium and copper prices, which are currently beneficial to the EWM and SCM businesses, also represent uncertainties which must be carefully watched in case the prices cannot be sustained.
“Hedging will be key to managing any sharp downtrends in prices. It must also be mentioned that a major drawback of higher prices is that more working capital will be needed to trade,” says Metech.
The counter closed at 0.3 cent on Friday.
