Aztech's Q1 profit lower on one-off start-up costs

AZTECH Group saw net profit slide 27.5 per cent year on year to S$1.22 million for the first quarter ended March 31, 2015, largely due to higher administrative expenses from one-off start-up costs.

Revenue was flat at S$85.59 million as lower revenue from its material supply and marine division was offset by higher revenue from its electronics division. Gross profit came to S$7.85 million, down 7.8 per cent from a year ago, due to higher depreciation costs associated with a new shipyard acquisition and the offsetting effect from the business segment mix.

Earnings per share slipped to 0.25 Singapore cent from 0.35 cent in the corresponding quarter a year earlier.

Meanwhile, administrative expenses for the quarter rose 5.5 per cent to about S$5.2 million.

"Market demand for LED lighting products may gain further traction in the next quarter and next 12 months and when such increase in demand materialises, the group could stand to benefit from more orders," it said.

At the same time, it flagged "elevated headwinds" over the next one year in the form of ongoing foreign exchange volatility and persistent low inflation.