Written by The Edge
SMB United, one of the leading manufacturers and distributors of switchgear and electronic meters in Singapore, today reported a net profit attributable to owners of $7.3 million for the half year ended 30 June 2010 (1H2010) on revenue of $107.2 million.
Group revenue recorded on a half year basis was a 10.9% increase from the 1H2009 revenue of $96.7 million. The higher turnover was attributed to significant deliveries made in Malaysia by the Switchgear Division in the second quarter, while the Power & Technology Division made steady deliveries due to the increase in demand for electricity meters in Australia, New Zealand, Europe and Asia. Better product mix as well as higher margins for foreign currency denominated contracts that were delivered during the period also led to improvements of gross profit margin, which rose from 27.4% in 1H2009 to 31.6% in 1H2010.
Although SMB’s bottom line in 1H2010 was not as strong as that achieved in 1H2009, its 2Q2010 performance showed a significant improvement with net profit increasing by 73.2% over 1Q2010.
Compared to the corresponding period last year, net profit dropped due to higher general and administrative expenses, which was attributed to higher bonus accruals and headcount increase in the Power & Technology Division to support the expanding sales volume. The absence of one-off gains including the gain from the acquisition of additional shareholdings in EDMI Limited that was recognised in 1Q2009 also contributed to the slide in net profit.
Basic earnings per share slid to 1.52 cents in 1H2010, as compared to 1.89 cents in 1H2009. Net asset value per share for the group was 28.3 cents as at 30 June 2010.
Dividend : None
