Aztech Q4 net profit falls nearly 91%

Singapore

AZTECH Group saw its net profit for the three months ended Dec 31, 2014, slump nearly 91 per cent year on year to S$280,000 on the back of higher expenses and lower revenue.

Revenue slipped 7 per cent to S$77.34 million as higher sales from its electronics segment were offset by lower revenue from its material supply and marine logistics segment. Earnings per share came in at 0.06 cent, down from 0.63 cent a year ago.

During the quarter under review, cost of sales slipped 5.3 per cent to S$68.9 million, translating to a gross profit of S$8.42 million, down 18.9 per cent. Gross profit margin was 10.9 per cent, down from 12.5 per cent in the corresponding quarter a year ago owing to a different business segment mix. Meanwhile, administrative expenses were higher by 8.9 per cent at S$6.24 million

For the full year, net profit clocked S$5.77 million, or 10.7 per cent lower year on year, even as revenue increased 36.6 per cent to S$329.4 million.

Commenting on outlook, the group warned that the year ahead is likely to be challenging due to currency volatility, economic uncertainties as well as stiff competition, which will put pressure on pricing and profit margins.

Aztech said: "With the new business acquired in FY2014, the group is opening more outlets to expand its F&B Retail business in FY2015 and looks towards offering more marine and shipyard related services."

It added: "The group will also continue to seek out new business opportunities within its various business segments, while remaining its cautious posture in managing costs, working capital and driving product innovation and productivity."

The group has proposed a final dividend of 0.5 Singapore cent per share, payable May 20.