Advancer Global (43Q:SES), an integrated services provider offering workforce solutions and services in Singapore announced yesterday after markets closed, that, based on preliminary assessment of its unaudited consolidated financial results for the financial year ended 31 December 2021, the group is expected to report a net loss for FY2021 as compared to a net profit for the financial year ended 31 December 2020.

Since the onset of the Covid-19 pandemic in the beginning of 2020, the group’s business activities have continued to be dampened.

The accommodation expenses increased due to provision of housing to Migrant Domestic Workers (MDWs) who are required to serve ‘stay-home-notice’.

Recruitment costs paid (or payable) to overseas recruiters increased due to requirement of multiple Covid-19 tests over a 14-day period at isolation facilities in MDWs’ home countries.

Insurance expenses for employment services increased due to absence of insurance rebate in FY 2021.

The company added that cost of sales increased because of an increase in direct labour costs of property management services.

Other operating income reduced substantially due to lesser government grants and credit schemes and other relief subsidies in relation to Covid-19 in the year of 2021.

Administrative expenses increased substantially mainly due to the acquisition of new subsidiaries, increase in marketing expenditures, purchases of face mask for employees, impairment loss of goodwill, loss allowance for impairment in quoted and unquoted equity instruments.

In February 2022, the group announced that it acquired 100% of the total issued and paid-up share capital of Propmag Management Services Pte Ltd and Propmag Property & Facility Pte. Ltd.

The group is in the process of finalising its unaudited financial results for FY2021.

Advancer will announce its unaudited financial results for FY2021 on or before 1 March 2022.

Advancer’s profit guidance was published yesterday after markets closed. The group last traded yesterday.