Enviro-Hub Holdings has reported earnings of $2.7 million in the 2HFY2021 ended December, 4.5 times higher than the earnings of $597,000 in the corresponding period the year before.

The company’s earnings for the FY2021 came in at a record-high of $3.2 million, reversing from the $1.1 million loss seen in the FY2020.

Earnings per share (EPS) for the 2HFY2021 and FY2021 stood at 0.2 cent and 0.25 cent respectively up from the 0.06 cent and loss per share of 0.1 cent in the same period the year before.

According to the company, the stellar performance was driven by the company’s e-waste recycling business, as well as maiden contribution from its newly-acquired subsidiary, Pastel Glove. The acquisition of Pastel Glove was completed in October 2021.

Revenue for the 2HFY2021 grew 42% y-o-y to $22.7 million mainly due to higher sales from recycling businesses and contribution from Pastel Glove.

See also: <a class='gtm_see_also_1_inread' style='text-decoration: underline;' href='/capital/results/ntuc-income-reports-premium-growth-fy2021-lower-net-operating-surplus-fair-value?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>NTUC Income reports premium growth for FY2021 but lower net operating surplus on fair value loss</a>

Gross profit for the 2HFY2021 surged 92% y-o-y to $6.2 million mainly due to the higher gross profit from the company’s recycling businesses, and partly offset by the lower gross profit from its property business.

2HFY2021 saw other income increase 4% y-o-y to $3.4 million on the back of the higher fair value gain on precious metal and gain on disposal of strata units. This was offset by lower government grants and foreign exchange gains during the year.

Segmentally, Enviro-Hub’s e-waste and metals business segment contributed 81% to the group’s total revenue in the FY2021, which stood at $40.4 million, up 31% y-o-y.

Its investment properties business contributed 6% to the group’s total revenue in the FY2021.

See also: <a class='gtm_see_also_2_inread' style='text-decoration: underline;' href='/capital/results/serial-system-reports-lower-1qfy2022-earnings-allowance-obsolete-stocks?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>Serial System reports lower 1QFY2022 earnings on allowance for obsolete stocks</a>

Piling contract, construction, rental and servicing of machinery business segment contributed 9%, while the healthcare products business segment contributed post-acquisition revenue of 4% to the company’s total FY2021 revenue.

As at end-December, cash and cash equivalents stood at $13.7 million.

Net gearing shrunk to 47% as at end-December, from nearly 70% in the year before.

No dividend has been declared for the period.

“In FY2021, we remained focused on executing our long-term strategy and stepping up growth investments. The evolution of our business segments continued, putting our focus on attractive growth opportunities such as our acquisition of Pastel Glove and further expansion in healthcare segment,” says executive chairman Raymond Ng.

“We are making good progress in the e-waste segment with our disciplined execution in expanding capacity and clients’ base. We continued to create value for our shareholders through prudent capital allocation and strengthen our investment strategy,” he adds.

Enviro-Hub says it has identified the healthcare industry as a “viable additional revenue stream business” with sustainable growth potential looking ahead.

For more stories about where money flows, <a class='gtm_see_also_3_inread' style='text-decoration: underline;' href='/capital/right-timing/straits-times-indexs-rebound-likely-be-fleeting-further-volatility-lies-ahead?utm_source=website&utm_medium=article&utm_campaign=ONPAGESEO'>click here for Capital Section</a>

It adds that it plans to expand into the pharmacy business in Malaysia “in [the] near future”.

Shares in Enviro-Hub closed 0.1 cent lower or 1.43% down at 6.9 cents on Feb 24.

Enviro-Hub sees 4.5 times surge in 2HFY2021 earnings of $2.7 mil; records all-time high earnings of $3.2 mil in FY2021

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