SINGAPORE (Aug 11): Firearms-training facilities engineering group Starburst Holdings reversed out of the red with earnings of $0.6 million in the 1H17 ended June, from a net loss of $2.1 million a year ago.
This came on the back of a vastly improved gross profit margin, which surged 37.7 percentage points to 45.8% in 1H17 due to better management of project and production costs.
Project and production costs fell 59.8% to $5.4 million in HY2017, in line with a decrease in revenue, and lower sub-contractor and overhead costs.
Revenue fell 32.1% to $10.0 million in HY2017, from $14.8 million a year ago.
As at end June, cash and cash equivalents stood at $8.0 million.
“We are pleased to have delivered our second consecutive quarter of profit, a clear signal that our efforts to control costs have continued to bear fruit,” says Starburst executive chairman Edward Lim Chin Wah.
“Going forward, apart from focusing on higher margin projects, we will also look for opportunities to expand into complementary areas of growth, leveraging on our core competencies,” he adds.
In a filing to SGX on Friday, Starburst notes that its overall revenue may fluctuate due to the nature of its business being largely project based.
“We have seen an encouraging level of enquiries for our firearm training facilities, in line with law enforcement authorities’ response to the threat of extremism globally. We are actively responding to these enquiries and requests for tenders, including engaging in post tender discussions with potential customers,” says Lim.
Shares in Starburst closed 1.5 cents higher at 43 cents on Friday.
