Avi-Tech 1H2026 slips into S$1.0m loss on margin squeeze; cash pile remains strong at S$37.5m
Summary:
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Revenue dipped 3% year on year to S$8.7m in 1H2026, as softer Engineering Services demand and project deferments offset growth in Manufacturing and PCBA Services to S$6.1m.
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Gross profit halved to S$0.7m and the Group posted a net loss of S$1.0m versus a S$0.2m loss a year earlier, with basic EPS deteriorating to a negative 0.58 cents.
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The balance sheet remains robust with total assets of S$55.1m, net working capital of S$40.7m and a cash balance of S$37.5m against total liabilities of S$5.6m, supporting strategic investments and diversification.
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The Board withheld an interim dividend to preserve capital, prioritising liquidity and funding for efficiency measures and new growth initiatives.
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Management is pushing diversification into higher‑value Automated Test Equipment load boards and IoT solutions via the proposed Create Technologies deal to mitigate cyclical semiconductor headwinds and broaden earnings.