Mencast Holdings, the sterngear equipment manufacturer and services provider, achieved a net profit attributable to shareholders of $7 million for the full-year ended 31 December 2009 (FY2009).

Total revenue of the group rose 4.8% to $26.3 million in FY2009, on the back of higher revenue contribution from its sterngear services business division, due mainly to the contribution from Recon Propeller & Engineering Pte Ltd and the business of Denfon Engineering, following their acquisitions last year.

Revenue from the sterngear services business division increased 16.1% to $12 million in FY2009, from $10.3 million the year before (FY2008). Revenue from the sterngear manufacturing business division declined 3.1% to S$14.3 million in FY2009 due to the slowdown in activities in the shipbuilding industry.

Gross profit of the group increased 10.2% to $12.4 million in FY2009, from $11.3 million in FY2008. Overall gross profit margin improved from 45.0% in FY2008 to 47.3% in FY2009 due mainly to lower raw material costs such as copper alloy and steel as compared to the significantly higher prices of the same materials in FY2008.

The group’s net profit attributable to equity holders increased by 21.2% to $7.0 million in FY2009, which translated to basic earnings per share of 4.71 cents. The group’s net profit margin also improved from 23.2% in FY2008 to 26.8% in FY2009.

Mencast has recommended a first and final cash dividend of 1 cent per ordinary share, representing a payout ratio of 22%.

The group says it expects to continue to operate under challenging conditions as demand for new shipbuilding orders remain slow, which in turn could affect sales for its sterngear manufacturing division.

As at 31 December 2009, the group’s order book for sterngear manufacturing was $8.4 million.