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InnoTek declares one S cent dividend as Q4 earnings fall 42% to S$2.8m
FOLLOWING a request on Feb 1 to move a resolution to declare a 7.5 Singapore cent per share dividend by Gazelle Capital which holds a 6.28 per cent stake in InnoTek Limited, the precision metal components manufacturer announced a dividend of one cent for fiscal 2017, double the dividend for the previous year.
Gazelle cited InnoTek's lack of intention to utilise excess funds, its financial position, an improvement in financial performance, the need to reward shareholders for their loyalty and increasing shareholder value as reasons for the proposed dividend of 7.5 cents. Gazelle had requested the resolution to be moved at InnoTek's annual general meeting (AGM) on April 25.
"The board will provide their response to Gazelle's proposal in the explanatory note to the resolution relating to the requisition received from Gazelle to be included in the notice of the AGM," InnoTek said.
For the fourth quarter, InnoTek reported a 42 per cent decrease in net profit to S$2.8 million from S$4.8 million as earnings per share dropped to 1.23 cents from 2.13 cents in the previous year, the group said in a Singapore Exchange filing on Wednesday evening.
For the three months ended Dec 31, revenue crept up 1.3 per cent to S$56.1 million from S$55.4 million in the year ago period.
This was mainly due to increased revenue from its precision machining business, with higher sales from heat sink, car display panel and TV Bezel programmes, InnoTek said.
For the full year, the group's revenue dropped 1 per cent to S$212.7 million from S$214.7 million the year before.
The decline in revenue was due mainly to lower demand for office automation and consumer products from its precision components segment, InnoTek said.
Net profit for the year fell 15 per cent to S$9.8 million from S$11.6 million as earnings per share fell to 4.39 cents per share from 5.17 cents per share a year ago.
Net asset value per share crept up to 59.8 cents as at Dec 31, from 55.8 cents in a year ago.
InnoTek shares were trading at S$0.445, S$0.01 or 2.2 per cent down as at 11.41am.