Avi-Tech Holdings has reported net profit of $3.1 million for the FY2022 ended June, 9.7% lower than the net profit of $3.5 million posted in the year before.
During the period, the group’s revenue increased by 5.1% y-o-y to $30.8 million due to higher revenue contribution from its engineering services business segment. This was offset by the lower revenues from the group’s burn-in services segment and manufacturing and PCBA (or printed circuit board assembly) services segment.
Gross profit for the FY2022 increased by 3.3% y-o-y to $7.8 million. Gross profit margin (GPM) fell by 0.3 percentage points y-o-y to 25.3%.
Despite the higher revenue and gross profit, the lower net profit is on account of the substantial increase in electricity costs, totalling over $600,000, as well as the absence of the $600,000 Covid-19 government support grant that was provided in FY2021.
Basic and diluted earnings per share (EPS) have been set at 1.84 cents per share for FY2022, compared with 2.03 cents per share for FY2021.
Avi-Tech’s balance sheet remained healthy with total assets of $58.7 million against total liabilities of $7.3 million as at June 30, registering positive working capital of $40.3 million in FY2022, compared to the $40.7 million in FY2021.
The company also generated positive operating cash flow with an increase in cash and cash equivalents of $1.3 million, closing the year with a healthy cash balance of $33.1 million.
With these results, the company has announced a proposed final dividend of 1.0 cent per share, bringing its total dividend payout for FY2022 to 1.75 cents per share.
The dividend will be payable on Nov 29.
Avi-Tech believes that its outlook remains “mixed”, and maintains “cautiously optimistic”, despite recent developments such as the recent interest rate hikes from central banks to combat inflation, the challenges posed by the onset of the war in Ukraine, the evolution of the Covid-19 pandemic and China’s zero-Covid policy, which may continue to weigh in on supply chain disruptions.
CEO Lim Eng Hong says that the company will continue to focus on “enhancing” its core business efficiency, working oncost management, particularly in managing electricity costs by exploring solutions with authorities and suppliers, improving productivity and generating more output from existing capacity to better meet customers’ demands more efficiently and effectively.
“At the same time, we will continue to leverage global opportunities afforded by digital transformation, vehicle electrification, autonomous driving and smart technologies to capture growth from these favourable megatrends by exploring new collaborations, including mergers and acquisitions or even new partnerships, to deliver long-term sustainable returns to shareholders,” he concludes.
Shares in Avi-Tech closed 0.5 cent lower or 1.67% down at 29.5 cents on Aug 23.