Lion Asiapac (BAZ) Q1 2024 earnings summary

Executive summary

• Net profit was S$136,000 versus a S$862,000 loss a year earlier; continuing operations contributed S$100,000 profit and discontinued operations S$36,000 profit.

• The quarter included one month of contribution from the roofing businesses acquired in August; Compact Energy was classified as held for sale and discontinued operations.

Financial highlights

• Continuing-operations revenue was S$4.583m; management attributed the increase to improved steel trading, mining-equipment trading and one month of roofing-solutions contribution.

• Discontinued-operations revenue was S$5.801m versus S$7.755m YoY; post-tax profit was S$36,000 versus a S$242,000 loss.

• Other income and gains from continuing operations rose 61% to S$413,000, including S$232,000 goodwill written off as a gain following the acquisition.

• Continuing-operations other losses were S$38,000 versus S$462,000, as stronger RMB reduced foreign-exchange losses.

• Total comprehensive income was S$132,000 versus a S$2.072m loss; other comprehensive loss included a S$371,000 fair-value decline and S$341,000 foreign-currency translation gain.

Outlook and guidance

• Acquired Semangat businesses are expected to contribute to consolidated results; management plans to manage economic challenges prudently and pursue new opportunities.