The Board of Directors of ACROMEC Limited announce that preliminary review of the unaudited financial results of the Group for financial year ended 30 September 2016, the Group is expected to incur a net loss. The net loss is mainly attributed to: Substantial one-off professional fees incurred in relation to the initial public offering exercise, pursuant to which the company was successfully listed on the Catalist board of the Singapore Exchange Securities Trading Limited on 18 April 2016; Lower gross profit margins reported for Fiscal year 2016 mainly due to recognition of additional cost incurred in a few of the Group's major projects in the second half of the financial year due to unanticipated requirements from customers and scope changes. Whilst the Group has submitted its corresponding variation orders and is in discussion with its customers, the Group has not recognized these variation orders as revenue before the issues are resolved. In addition, the Group has underestimated the impact of the execution difficulties and complexity of two of its healthcare projects where the projects' adjacent critical facilities are unning at full scale operations; and Poorer manpower productivity as manpower were increased in the second half of the financial year to prepare for expected increase in tender activities. These tenders were however delayed, in part, due to Singapore's slower growth and the uncertainty in the global economy.