Revenue for the three months ended Sept fell 22.8% to $33.6 million, led by a decrease in contribution from hospitality and commercial segments. During the quarter, the group had also completed fewer projects compared with 3Q16.
Gross margin decreased to 22.9% for 3Q17 from 23.1% in 3Q16 as a result of lower margins recorded in projects completed during the quarter.
Marketing and distribution expenses increased to $1.7 million from $1.6 million due to an increase in travelling expenses and increase in staff costs relating to restructuring.
General and administrative expenses also increased to $2.6 million in 3Q17 from $2.3 million in 3Q16 mainly due to increase in foreign exchange losses and impairment loss on doubtful receivables.
As at end Sept, the group’s order book stood at $146 million with a strong balance sheet and cash position.
As Singapore’s residential and hospitality market picks up and Malaysia, Thailand and China maintain their growth momentum, Design Studio says it is optimistic about its performance in leading into FY18.
“The group’s focus is to regain its market share in Singapore, and expand its international footprint organically in a measured and disciplined manner,” it adds.
Shares in Design Studio closed at 60 cents on Wednesday.
