“It has since completed the review, and identified core assets which bring synergies to the group, as well as non-core assets which are surplus to its operations that would be written down,” it adds.
The closure of surplus non-core assets and the write-down of excess and obsolete inventories are expected to move the group’s productivity. It is also expected to optimise its cost structure and lower cash operating expenses, resulting in significant value creation over the medium to long term.
As such, the group is expecting to make a material non-cash write-down for its surplus non-core assets as well as excess and obsolete inventories in the FY2023. The move will result in a significantly higher financial loss compared to the year before.
Seatrium will release its results on the morning of Feb 26.
See also: Creative guides for ‘similar level of operating loss’ for 2HFY2025
Shares in Seatrium closed 0.4 cents higher or 3.85% up at 10.8 cents on Jan 29.
