Venture Corp posts 5.8% rise in Q1 net profit

GLOBAL electronics service provider Venture Corporation posted a 5.8 per cent hike in net profit to S$32.56 million (S$30.77 million, one year ago) in the first quarter ended March 31st, 2015.

This came on a revenue of S$608.65 million, up 3 per cent over the year-ago quarter's S$590.98 million. Diluted earnings per share (EPS) was 11.8 Singapore cents for the quarter (11.2 Singapore cents, one year ago).

Venture recorded a quarterly profit before tax of S$38.4 million for the quarter, an increase of 13.6 per cent compared to the corresponding quarter of the prior year. Based on tax incentives granted to the company, income tax expense for the quarter was S$5.7 million due to changes in sales mix of tax approved products.

During the quarter, Venture generated cash from operations of S$40 million (S$41.8 million, one year ago). It registered an increase in working capital largely due to higher inventories.

Through concerted collection efforts, trade receivables decreased by S$26.7 million to S$530.3 million for the reported quarter compared to the previous quarter which ended on December 31, 2014. Trade payables decreased slightly to S$380.5 million for the same reported period.