HPC Holdings (01742) issues profit warning, expecting an annual loss of around 8.48 million Singapore dollars.

HPC Holdings (01742) announced that the group is expecting a significant decrease in the attributable profit for the year ending October 31, 2024, compared to the audited performance for the year ending October 31, 2023, by approximately SGD 11.59 million, changing from a profit of about SGD 3.1 million to a loss of about SGD 8.48 million. Overall, the group's net loss for the current year is expected to be about 3.7 times higher compared to the audited full-year performance for the year ending October 31, 2023. The significant decrease in profit is primarily due to (including) the following reasons: 1. The group has been following up on two high-potential projects that were originally expected to be awarded in the first half of the year, but were eventually lost, while existing projects under construction have spanning over two years. These two factors have resulted in a significant reduction in construction activities for the current year; 2. The completion period of one project has been extended, leading to cost overruns; 3. The group upgraded its workplace to a new corporate building, resulting in an increase in administrative expenses due to matching the new corporate management standards and market branding. Despite the above, the board of directors believes that the group's financial position remains robust due to maintaining sufficient order levels, reserves, and working capital.