Kakiko Group Limited provided unaudited consolidated earnings guidance for the year ended 2018. For the year, the company expected loss of approximately SGD 4 to SGD 5 million for the year ended 2018. The Group recorded a profit of approximately SGD 4.6 million (excluding one-off listing expenses) for the year ended 2017. In addition to the factors discussed in the Group's interim report dated 13 August 2018, the change from profit to loss was mainly attributable to, among other factors, a decrease in the number of construction ancillary services projects awarded to the Group in 2018 as compared to that in 2017; an increase in workers' wages and other related costs as the Group employed more workers in 2018 in preparation for the large-scale public sector projects as compared to that in 2017; an increase in staff costs mainly due to bonus payment made to back office staff and the remuneration paid to the executive Directors and independent non-executive Directors who were appointed in late 2017; and an increase in travelling and entertainment expenses mainly due to an increase in the costs in relation to the relationship building with the Group's existing and potential customers in 2018. Besides the above mentioned factors, there is a significant increase of approximately SGD 2 to SGD 2.5 million in provision for doubtful debts due to the adoption of IFRS 9 which was effective on 1 January 2018.