XMH Holdings 1Q16 Net Profit Plunges 47%

XMH Holdings reported 1Q16 net profit of $743,000, a plunge of 46.9 percent year-on-year, on the back of a 7.8 percent decline in revenue to $23.8 million.

The weaker top line was due to lower contributions in the projects and aftersales business segments of approximately $3 million and $1.1 million respectively, mainly attributed to the timing of contract deliveries in 1Q16 as compared to the exceptionally high deliveries recorded in 1Q15.

Overall operating expenses increased 17.3 percent mainly as a result of the 80 percent acquisition of Z-Power Automation (ZPA) in 4Q15, due to the consolidation of ZPA’s results, higher marketing expenses as well as higher amortisation of intangible assets, which eroded profitability.

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