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Vibropower Corp posts 2.2% dip in FY2017 earnings

VIBROPOWER Corporation on Sunday announced a 2.2 per cent dip in earnings for the fiscal year 2017 on the back of lower revenue.

Net profit for the 12 months ended Dec 31 came in at S$575,000, compared with S$588,000 from a year earlier.

Earnings per share was 1.6 Singapore cents, down from 1.74 Singapore cents previously.

No dividend was declared for the period.

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Revenue dropped 43.4 per cent to S$14.2 million mainly due to lower sales and the deferment of a few projects, said Vibropower Corp, which manufactures and supplies customisable power generator sets, in a filing to the Singapore Exchange.

Gross profit was little changed at S$3.4 million due to better product margin and lower manufacturing overheads.

Administrative expenses eased 15.4 per cent to S$2.3 million on lower operating costs, while finance costs decreased by 20.9 per cent to S$500,000 as there were fewer borrowings during the year.

The group also recognised a foreign exchange loss of S$500,000, due to translation loss of foreign entities.

Vibropower Corp said that the group expects to continue facing stiff competition in the market and to operate in a challenging economic environment, although it will remain focused on operational efficients to stay competitive.

It added that the power plant in China has resumed operations in January, and is expected to contribute to the group's financials.

Shares of Vibropower Corp closed 2.2 per cent or 0.3 Singapore cent higher at 13.8 Singapore cents last Friday, before the results were out.