Broadway Industrial Group recorded Losses
Broadway Industrial Group (BIGL), a company which provide solutions in the manufacturing of precision machined components was founded in 1969 and listed on the SGX Main Board in 1994 had been making losses for the last three financial years.
Back in December 2016, the Company’s Flow Control Devices and Foam Plastics businesses (link) were divested. Now, BIGL comprises of over 7 manufacturing and research facilities across China, Thailand and the USA and employs more than 4,000 people worldwide. Through its subsidiary Compart Asia, BIGL is one of the top three manufacturers of actuator arms and related assembled parts for the global hard disk drive industry.
BIGL had earlier on divested its Foam plastic operation in Malaysia, Thailand and Indonesia in 2002 in order to focus its business on China, which was emerging as a major manufacturing hub for the global electronics industry. The Group recorded loss of SGD 1.6 Million in 2016 and SGD 74.395 Million in 2015. The Group had net debt of SGD 87.1 Million while payables were about SGD 115 Million while revenue dropped from SGD 402.6 Million in 2015 to SGD 373.7 Million in 2016 and seeing a decreasing profit margin from 2.4% to 0.72% and was due to keen competition resulting in lower selling prices and write-off of inventories while Management succeeded in lowering logistic cost, administration/sales/marketing cost by 6.6% yoy in 2016 to SGD 20.4 Million.
Going forward, the Management expect the environment continue to be challenging due to tight NAND supply and elevating SSD prices based on the outlook of eroding PC Volumes and increasing SSD usage rates.https://straitsjournal.com/broadway-industrial-group/EngineeringIndustrial Goods & SvcsSemiconductorBroadway,HDD,NAND,SSDBroadway Industrial Group (BIGL), a company which provide solutions in the manufacturing of precision machined components was founded in 1969 and listed on the SGX Main Board in 1994 had been making losses for the last three financial years. Back in December 2016, the Company's Flow Control Devices and Foam Plastics businesses...escveritas [email protected]AdministratorThe Straits Journal