CSE Global returns to the black with Q4 net profit of S$5.06m

TECHNOLOGY solutions provider CSE Global was back in the black in the fourth quarter, despite a slide in revenue, on the absence of massive costs chalked up in the same period the previous year.

Net profit for the three months to Dec 31 was S$5.06 million, against a prior loss of S$37.3 million, according to full-year results released on Wednesday. Meanwhile, revenue was 14.2 per cent lower year-on-year at S$100.1 million, as turnover fell in all regions - most notably the Americas.

The turnaround to profitability came on a 79.2 per cent drop in "other operating costs", as CSE Global had previously racked up S$9.17 million in net impairment of receivables, S$2.98 million in a write-down of unbilled receivables and a S$1.05 million net allowance for stock obsolescence in the year before.

Earnings per share was 0.99 Singapore cent, compared with a loss per share of 7.23 cents previously.

For the full year, net profit came in at S$20.1 million, compared with a loss of S$45.1 million before, as revenue rose by 4 per cent to S$376.8 million.

The board has recommended a final dividend of 1.5 Singapore cents a share, for an annual payout of 2.75 Singapore cents a share - the same amount in the year before.

The group said in its outlook statement that it expects an improvement in its financial performance for 2019, based on a projected increase in market activities and a more stable pricing environment.

It netted S$384.2 million in new orders in 2018 on the back of infrastructure project orders, up from S$381.9 million the year before, with S$181 million in outstanding orders as at year-end.

CSE Global closed up by 1.5 Singapore cents or 3.23 per cent to S$0.48 before the results.