Neo Group reports higher Q4, full-year net profit

CATERER Neo Group on Wednesday reported a net profit of S$3.92 million for the fourth quarter ended March 31, up nearly 43 per cent from the corresponding quarter a year ago as it reported higher revenue.

Q4 revenue increased 7 per cent to S$50.89 million on the back of better food catering business.

For the full year, net profit shot up 48.7 per cent to S$5.4 million, while revenue edged up 1.6 per cent year-on-year to S$181.02 million owing to stronger revenue contributions from its food catering and food retail businesses, as well as the other businesses segment. Earnings per share came to 3.68 Singapore cents, rising from 2.49 cents previously.

Neo Group's chief executive Neo Kah Kiat said: "We will continue to actively pursue higher-margin and recurring income opportunities across the various market segments. This covers the full spectrum, from childcare and elderly to the fast-growing tingkat business, to institutional catering, corporate clients and venue partnerships. Moving ahead, we aim to continuously maximise shareholder returns through improved operational synergies and efficiencies."

The group has proposed a final cash dividend of 0.5 Singapore cent for FY19.

The counter closed at 52 cents on Wednesday, up five cents.