[ET Net News Agency, 19 February 2021] Raffles Interior Limited (01376) said the group
anticipates to record a net loss after tax of approximately SGD4.5 million for the
financial year ended 31 December 2020 (FY2020) as compared to a net profit of
approximately SGD6.9 million for the year ended 31 December 2019 (FY2019).
It was primarily due to the decrease in the group's revenue as a result of the
imposition of circuit breaker measures by the Singapore government in April and May 2020
due to the outbreak of COVID-19. During the circuit breaker period between 7 April 2020 to
1 June 2020, the group's interior fitting out services are identified as non-essential
business and therefore all of the group's project sites were halted. Although the circuit
breaker measures have been gradually lifted on 1 June 2020, work at site cannot resume
immediately due to the spike in COVID-19 infections among foreign workers living in the
dormitories and the additional safe and controlled measures for each construction projects
before work can resume at site. The group is only able to fully resume operation since
November 2020, therefore revenue recognised during FY2020 significantly reduced when
compared to FY2019.
Apart from the decrease in revenue, cost of sales had also increased as a result of
additional cost like more supplied labour and subcontractors engaged to complete the
projects within the new stipulated timeline, which resulted in a significant drop in the
gross profit margin for FY2020. (RC)