It is paying a final dividend of 0.03 cents per share
By TEH SHI NING
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WHILE many companies can only dream of announcing dividends this earnings season, Liang Huat Aluminium had one to declare but neglected to mention it to shareholders.
The aluminium manufacturing group yesterday issued a correction to say that contrary to its 'no dividend' statement last week, it will be paying out a final one-tier tax exempt cash dividend of 0.03 cents per share after all.
Last Tuesday, Liang Huat announced a net profit of $5.4 million for the full year ended Dec 31, 2008. This was a 96 per cent plunge from a net profit of $142.7 million in the preceding year.
The group's revenue, however, almost tripled from $9.2 million in FY2007 to $25.6 million in FY2008.
The seemingly incongruous fall in net profit was largely due to the fact that FY2007's net profit included one-off gains from restructuring totalling $142.2 million.
The impact of its revenue growth was thus more evident in the jump in gross profit from $1.6 million in FY2007 to $8.5 million in FY2008.
The group attributed this to 'a lower cost structure' as most of its plant and equipment has been fully depreciated, as well as minimal finance costs.
'Significant savings in material costs' also contributed to the higher gross profit, the group said. The price of aluminium fell significantly in the fourth quarter of 2008.
Liang Huat's recently completed projects include internal facade work for Changi Airport's Terminal 3, and unitized curtain wall systems for The Sail @ Marina Bay and The Capella @ Sentosa.
Its current projects include the design, supply and installation of an aluminium membrane system, LED lighting and video systems and internal facade works for Orchard Central, and another contract for works on The Clift @ McCallum Street.
The group's gross order books stand at $55.9 million.
Liang Huat expects its operating environment to be difficult in the year ahead, and said that it would focus its efforts on securing high value-added projects, evaluating the effectiveness of its cost control measures, and monitoring its cash flow.
It reported a cash and cash equivalents position of $7.5 million, up from $6.7 million a year ago.
Earnings per share fell, from 12.7 cents to 0.2 cents, while net asset value per share rose from end-December 2007's 0.4 cents to 0.5 cents as at Dec 31, 2008.
Liang Huat's shares last traded at 1.5 cents.
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