For the 2HFY2020 ended December, Multi-Chem saw earnings increase 171% y-o-y to $10.5 million from $3.9 million a year ago.

This brings earnings per share (EPS) to 11.61 cents on a fully diluted basis for the 2HFY2020 compared to 4.28 cents the year before.

Revenue for the half-year period fell 1.2% y-o-y to $253.7 million, while FY2020 revenue grew 5.2% y-o-y to $455.8 million.

The IT Distribution business saw revenue drop 1.3% y-o-y to $252.6 million for the 2HFY2020. For the FY2020, IT Distribution saw revenue increase by 12.3% y-o-y due to the increased reliance on digital technologies during Covid-19.

Revenue in the PCB division increased slightly, by $84,000 to $1.1 million in 2HFY2020. In FY2020, revenue in the division fell by 8.0% y-o-y to $2.2 million due to lower customer demands and reduction of manufacturing capacity of the group resulting from customer demands and reduction of manufacturing capacity of the group due to the disposal of the remaining two laser machines in Singapore during the period.

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For the 2HFY2020, the group registered profit before tax of $14.9 million, compared to the $7.5 million in 2HFY2019.

This was due to an increase in gross profit of $2.8 million due to the $1.0 million grant from the government from the Covid-19 pandemic.

The group also reported net foreign exchange gains of $1.9 million in 2HFY2020 compared to net foreign exchange loss of $490,000 in the year before, mainly due to the depreciation of the US dollar against the local currencies and the appreciation of the RMB against the SGD in 2HFY2020.

Excluding the net foreign exchange difference, PBT stood at $13.0 million.

Cash and cash equivalents stood at $67.6 million as at Dec 31, 2020.

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Looking ahead, the group says it will “focus on its best-of-breed products and will continue to look out for opportunities for regional expansion”.

It adds that it will be “selective of the products we carry so as to be able to do the best for the principals that the M.Tech companies represent. The group will also promote the M.Tech brand name and intends to work closely with key partners to further promote the products.”

Shares in Multi-Chem closed flat at $1.38 on Feb 8.