SINGAPORE (May 23): Sanli Environmental has announced earnings of $3.1 million for the FY18 ended March, down by 40.7% from its earnings of $5.2 million a year ago due to lower overall gross profit margin as well as higher administrative expenses and cost of contract works.

A final dividend of 0.25 cent has been declared for the full year.

Revenue for FY18 grew 17.6% to $75.6 million on the back of higher contributions from the gorup’s Engineering, Procurement and Construction (EPC) segment, partially offset by lower revenue from the Operations and Maintenance segment.

Cost of contract works however grew 20.1% to $64.7 million from $53.9 million a year ago due to higher material, sub-contracting, overhead and direct labour costs.

Administrative expenses grew 52.4% to $5.2 million from $3.4 million previously as a result of higher headcount and salaries, in addition to additional professional fee expenses incurred by the group’s Catalist listing.  

While gross profit grew 4.5% to $10.9 million over the year, gross profit margin fell by 1.8 percentage points to 14.4% in FY18 due to lower contributions from the Operations and Maintenance segment, which yields higher margins than the EPC segment.

As at end-March, cash and cash equivalents stood at $9.4 million compared to $11.5 million a year ago.

In its outlook, Sanli Environment says it sees a continued focus on creating a sustainable water supply in Singapore, and that it intends to continue capitalizing on its track record in undertaking water & waste management projects to grow its business.

The group adds that it will continue to undertake careful and comprehensive evaluation of areas for potential future growth in the Asean region.

Shares in Sanli Environmental closed flat at 25 cents on Wednesday.