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Ellipsiz's full-year net profit up 7% higher on revenue growth
DISCONTINUED operations bolstered the full-year bottom line at electronics distribution and service solutions provider Ellipsiz, according to unaudited results released on Monday.
The group turned in a net profit of S$9.1 million for the 12 months to June 30, up by 7 per cent on the year before, with revenue from continuing operations coming in higher by 18 per cent at S$49.1 million.
The higher turnover was on the back of a strong fourth quarter in the distribution and service solutions business, Ellipsiz said in its financial statements, with growth mainly from Singapore, mainland China and Taiwan.
But the group faced one-off expenses of S$4.1 million in retirement payouts for its former chief executive and former chief financial officer. It also suffered fair value and exchange losses.
Higher costs sank continuing operations into the red, to the tune of S$4.8 million, compared with a S$174,000 profit in the previous year. Earnings were salvaged by the 67 per cent growth in contributions from discontinued operations, to S$13.9 million. Ellipsiz sold a probe card solutions subsidiary, SV Probe, to Japan's Nidec-Read Corp for US$70 million in 2017.
Earnings per share stood at 5.43 Singapore cents, against 5.09 Singapore cents previously, while net asset value was 74.62 Singapore cents a share, down from 78.67 Singapore cents as at June 30, 2017.
The board has proposed a final dividend of S$0.02 a share, the same as in the yea before, and a special dividend of S$0.01 a share, down from S$0.045 a share previously.
Ellipsiz noted in its outlook statement that industry monitors have predicted worldwide growth in semiconductors and the contract manufacturing industry, but warned: "Despite these positive projections, the macroeconomic environment has become increasingly volatile due to the trade tensions between the United States and China."
The group said: "On this backdrop, we remain cautiously optimistic of our business and performance prospects. Our distribution and services Solutions segment will endeavour to continue to contribute to the results of the group, notwithstanding these uncertainties."
It added that a joint venture formed in May with intelligent vending machine company Kalms Investment "is scaling up and is in discussions on new partnerships and alliances to expand its platform both locally and regionally".
Ellipsiz closed higher by half a Singapore cent, or 1.11 per cent, at S$0.455, before the results.