Vicplas International saw FY20 earnings ended July increase 17.7% to $5.0 million from $4.2 million a year ago.

This translates to earnings per share (EPS) of 0.98 cents, compared to the 0.84 cents in 2019.

Revenue for the 12 months grew 10.8% to $88.8 million from $80.2 million a year ago due to higher revenue from the medical devices segment. The growth was partially offset by lower revenue from the pipes and pipe fittings segment.

Revenue for medical devices increased 36.2% y-o-y to $61.4 million due to increased orders, while revenue for pipes and pipe fittings fell 21.7% y-o-y to $27.4 million due to the stoppage of most construction projects during the circuit breaker measures and the slow recovery thereafter.

Other income was higher in FY20 due to the negative goodwill of $0.7 million from the acquisition of the remaining 80% of Arrow Medical Limited, as well as the $1.5 million in Covid-19 subsidies from governments of countries where Vicplas is located at.

Vicplas has proposed a final dividend of 0.38 cents per ordinary share for FY20.

The company says that its FY21 profit may be lower than that of FY20 due to the non-recurring negative goodwill and Covid-19 related subsidies from various governments. It will also be preserving its financial capacity to prepare for the expected capital expenditure relating to the proposed establishment or acquisition of a fifth plant for the medical devices segment.

Shares in Vicplas closed flat at 45 cents on September 25.