It is also asked about the material variation between its unaudited and audited statements in nine of the last 10 financial years
[SINGAPORE] The Securities Investors Association (Singapore), or Sias, has called on medical aesthetics firm Accrelist to clarify why the group has repeatedly reported material variances between its unaudited and audited financial statements.
This follows audit adjustments by the Catalist-listed company on Jul 13 to its FY2026 results, which resulted in a more-than-four-time increase in net loss to S$264,000 from S$1.14 million previously.
Meanwhile, equity attributable to equity holders declined by around 10 per cent to S$8.2 million.
Sias also noted that Accrelist has reported material variances between its unaudited and audited financial statements in nine of the past 10 financial years, except for FY2019.
In a response issued ahead of Accrelist’s annual general meeting on Jul 29, the company attributed the recurring discrepancies to “delays or adjustments arising at the subsidiary level, including at overseas entities … which in turn affect the accuracy of the group’s consolidated results”.
To address this, Accrelist said it has “taken steps to strengthen (its) finance function”, such as by giving the team involved in year-end reporting additional resources.
“Any issues arising between the auditors and the subsidiaries’ accountants are resolved promptly, including bringing up contentious issues early for the audit committee’s attention and resolution,” said the company.
Accrelist also addressed the investor watchdog’s queries on accounting reclassifications within its core medical aesthetics segment, and the appointment of an executive from the food and beverage sector as its new chief executive officer.
Sias noted that for FY2026, the group’s aesthetics medical services (AMS) segment improved its gross profit margin from 38 to 44 per cent. However, while marketing and distribution expenses declined by about S$200,000, administrative expenses rose significantly by about S$2.5 million, more than offsetting the improvement in gross profit.
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The company noted that administrative expenses comprised “mainly depreciation of property, plant and equipment and employee compensation remained broadly stable at S$5 million in FY2026, revised down from approximately S$7.5 million previously reported, following a reclassification between segments”.
As a result, the AMS segment reported a profit before income tax of S$1.2 million in FY2026, reversing the loss before income tax of S$1.1 million reported in FY2025.
The company said it will continue to monitor its cost base as it grows the AMS segment.
