Design Studio Group (DSG) has reported a multimillion-dollar profit loss for the first half of 2019, after revenue dropped sharply in Singapore and Malaysia.
The Asian subsidiary of Dubai-based interior design firm Depa Group posted a loss after tax of $13.3m (AED48.9m) for the first six months of 2019, down sharply on the marginal profit it made at the same point a year earlier.
DSG’s revenue fell by more than 40% year-on-year, due to a worse-than-expected performance in Singapore and Malaysia, compounded by weaker manufacturing figures.
While revenue streams declined, the company’s expenses for staff benefits, legal fees, repair and maintenance, travel and shipping costs increased.
The business is listed on Singapore’s stock market and thus has not made a detailed forward-looking statement about its financial performance for the next reporting period. However, DSH warned it expects to make a loss for 2019, but stressed it will work hard to “secure projects and improve” operational efficiency.
“The group will continue to strive on improving the bottom line by increasing efficiency, productivity and costs management. In consideration of the losses incurred for the half year ended 30 June 2019, the group is expecting to record a full-year loss for 2019,” the company said in its financial report.
DSG was established in the early 1990s as a joinery manufacturer and is operational across Asia. It floated shares on the Singapore Stock Exchange in 2003 before Depa Group acquired a share in the business in 2006.