Hai Leck Holdings, the integrated service provider of scaffolding, corrosion prevention and insulation works, says it posted a net profit after tax of $6.3 million for the six months ended 31 December 2009 (1H2010), an increase of 6% over the $5.9 million it made in the previous corresponding period.

For the same period, Hai Leck made $68.7 million in revenue, a rise of 50% or $22.9 million from $45.7 million in the previous corresponding period. The increase is due mainly to higher revenue from on-going projects in the Project Services unit that were mostly contracted in FY2007 and late-FY2008.

Quarter-on-quarter, revenue increased by 70% or $15.5 million to reach $37.5 million in the second quarter ended 31 December 2009 against $22.1 million in the previous corresponding quarter, primarily as a result of higher revenue from Project Services.

Due to a dilution after its Initial Public Offering, earnings per share was 1.9 cents for the 1H2010 under review, a marginal decrease over the 2.2 cents registered previously.

Overall, Hai Leck says the group continues to be in good financial shape with a market capitalisation of $94.2 million — based on yesterday’s closing price of 29 cents — backed by total assets of $107.6 million and net current assets of $35.8 million as at 31 December 2009. Net asset value per share of 23.3 cents was 5.9% or 1.3 cents higher than 30 June 2009.

At the end of December 2009, cash and cash equivalents balance amounted to $35.9 million, an increase of 100% over 30 June 2009 balance. Net cash flow generated from operations also jumped significantly for the period, standing at $23.8 million compared to $4.3 million the previous year.

On Nov 26, the company allotted and issued 130 million warrants, raising $1.2 million for working capital purposes. The warrants will mature two years from the date of issue.