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Tiong Woon full-year net profit slumps 46%

Tiong Woon Corporation Holding reported a 46 per cent slump in its net profit for the fiscal year ended June 30 to S$12 million as revenue and margins took a hit.

Revenue slipped 12 per cent to S$145.7 million due to an overall decline in business activities across all its business segments amid a challenging operating landscape, particularly for the oil and gas and petrochemicals industries.

Gross profit margin fell to 27.8 per cent in fiscal 2015, from 34 per cent in the preceding year. Through manpower rationalisation and job re-design, Tiong Woon managed to lower its other operating expenses.

Finance expenses decreased to S$0.7 million in FY15 from S$2.8 million in FY14, while Tiong Woon recorded a S$2 million currency translation gain in FY15, compared to a currency translation loss of S$100,000 in the previous year.

Group chairman and managing director Ang Kah Hong said: "Despite the challenges faced during the year, Tiong Woon was able to remain profitable. The business environment is expected to remain tough going forward, but Tiong Woon is committed to focus on delivering our best to customers and shareholders.

"We remain on the lookout for strategic business opportunities that would allow us to expand our services," he added.

The Board is proposing a dividend of 0.4 cent per share.