plastoform holdings ltd (PLAS) Snapshot

The rise in popularity of Bluetooth audio speakers has helped Plastoform Holdings lift itself off the Singapore Exchange's (SGX's) dreaded watchlist of loss-making companies. Plastoform said that it will exit the SGX watchlist from May 22, 2013. The list is designed to alert investors to underperforming companies. The company's pleasing rejuvenation came as it reversed an HKD 18 million (SGD 2.9 million) loss in the 2011 financial year to record a profit before tax of HKD 3.6 million last year. In another sign of the company's return to better financial health, Plastoform's average market capitalization over 120 days was above $40 million. The bottom line and market capitalization are two key factors determining whether a company is on the watchlist. The SGX watchlist is for mainboard-listed companies with three years of losses and whose market capitalization over the previous 120 days has fallen below $40 million. Watchlist companies get two years to return to the black or lift their market capitalization above $40 million, or they may face delisting.

The Board of Directors of Plastoform Holdings Limited announced the resignation of Ho Kang Peng as an Independent Director of the company with effect from 22 May 2013.

Plastoform Holdings Limited announced unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, the company reported revenue of HKD 65,646,000 against HKD 96,529,000 a year ago. The decrease in group revenue was mainly due to higher customer demand in first quarter 2012 when the company first launched the Bluetooth Speakers. Additionally, a major European customer encountered difficult market conditions, which caused them to withdraw their orders. Loss before income tax was HKD 9,199,000 against HKD 1,274,000 a year ago. The loss before income tax increased by HKD 7,900,000 from first quarter of 2012, the wider loss was largely attributable to lower product sales for the quarter. Loss for the period was HKD 9,199,000 or 0.68 cents per fully diluted share against HKD 1,274,000 or 0.18 cents per fully diluted share a year ago. Net cash generated from operating activities was HKD 40,190,000 against net cash used in operating activities of HKD 21,178,000 a year ago. Purchases of property, plant and equipment was HKD 1,162,000 against HKD 215,000 a year ago. Net asset value per ordinary share based on issued share capital as on March 31, 2013 was 8.4 cents compared to 8.5 cents as on December 31, 2012. Net cash from operating activities was due to the higher settlement of trade receivables.