Mainboard-listed Vicplas International achieved earnings of $5 million for the 1HFY2021 ended January 31, representing a 120% growth y-o-y from $2.3 million previously.

The increase in earnings follows higher revenue and other income for the period. Revenue grew 19.8% y-o-y from $47.2 million to $56.5 million, driven by increased customer orders from the medical devices segment, while other income grew 120% from $1 million to $2.8 million on the back of higher income from building tools for customers as well as Covid-19 grants totalling $0.5 million.

The increased revenue from the medical devices segment, which grew by 35.7% to $40.1 million, was partially offset by lower revenue for the pipes and pipe fittings segment, which decreased 7.6% to $16 million from $17.3 million previously. The company attributed the lower revenue to the construction industry that is still recovering from the disruptions caused by the Covid-19 pandemic.

Other operating expenses, which fell by 16.9% to $6.1 million, also contributed to the improved earnings. The lower expenses are due to a reduction in marketing-related, travelling and entertainment expenses due to the Covid-19 pandemic, and lower foreign exchange loss.

SEE:Vicplas International's FY20 earnings increase 17.7% to $5.0 mil

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Earnings per share (EPS) for the period stood at 96 cents, compared to 46 cents in 1HFY2020.

Ast at January 31, cash and cash equivalents stood at $4.8 million, while net asset value for the group stood at 12.92 cents, compared to 12.17 cents as of July 31, 2020.

No dividend has been recommended for the period.

In a statement dated March 15, the company says that long-term growth prospects in the medical devices outsourcing industry remain attractive and that it is well-positioned to “continue tapping opportunities in a post-Covid world”.

Shares in Vicplas closed 0.5 cents higher or up 1.96% at 26 cents on March 12.