ALLIED TECHNOLOGIES LIMITED

Transcription

1 ALLIED TECHNOLOGIES LIMITED NEWS RELEASE ALLIED TECHNOLOGIES REPORTS 3% GROWTH IN TURNOVER TO S$67.5 MILLION IN 1H FY06 - Net profit up five-fold to S$0.4 million in Q2 FY06 - Precision Engineering ( PE ) business continues to be the main revenue contributor - Strategic move into new market segment metal parts for LCD panels continues to yield positive results - Successful penetration into new market segment photocopier - yields positive results Singapore August 4, Allied Technologies Limited ( Allied Technologies ), a Mainboard-listed manufacturer of precision stamped metal parts, today announced a 3% revenue growth to S$67.5 million for the half year ended June 30, 2006 ( 1H FY06 ). This was achieved mainly due to the Group s good performance for its PE business. On a year-on-year basis, the Group s Q2 FY06 turnover of S$36.0 million represented a marginal 5% drop as compared to Q2 FY05. This resulted from a lower sales contribution of S$6.7 million from the Group s LCD monitor segment, in line with ongoing restructuring efforts of its Assembly Related ( AR ) business. The Group also achieved a five-fold increase in net profit to S$0.4 million for Q2 FY06, as compared to S$66,000 in the previous corresponding period. Mr. Hsu Ching Yuh, the Group s Chief Executive Officer and Group Managing Director, said: The first half of the year is traditionally a slower period for our business. We are delighted to have achieved top line growth for 1H FY06, an indication that we continue to be well on the recovery track. We are satisfied that our strategy to move into the sale of metal parts for LCD panels in China continues to bear fruitful results. We are also Page 1 of 5

2 very encouraged that our restructuring efforts for our Assembly Related business have successfully reduced losses further to just S$0.2 million in Q2 FY06, compared to S$0.6 million in the same corresponding period. Review of Performance On a half-yearly basis, Group revenue for 1H FY06 rose 3% to S$67.5 million, compared to S$65.6 million in 1H FY05. This was mainly attributed to an increase in revenue contributions from the Group s PE business in Singapore, Malaysia and China. The increase in revenue in 1H FY06 was also achieved on the back of higher revenue contribution from the PE business, recording a 19% increase as compared to the corresponding period in the prior year. For Q2 FY06, turnover for the Group s PE business increased by 16% to S$36.0 million as compared to S$31.0 million in Q2 FY05. Revenue contribution from printer and metal parts for LCD panels increased by S$1.3 million and S$3.7 million respectively as compared to the corresponding period in the prior year. Our continued efforts in expanding our product segment have continued to bear positive results. For the current quarter, apart from increased sales from our printer and metal parts for LCD panels segments, we have seen our sales from the photocopier segment increase from S$1.5 million in Q2 FY05 to S$5.2 million in Q2 FY06, added Mr. Hsu. Operationally, profit before interest and tax ( PBIT ) for Q2 FY06 has improved significantly by 81% to S$1.1 million from S$0.6 million in Q2 FY05. This improvement in results arose mainly from a reduction in operating losses by the Group s AR business from S$0.6 million in Q2 FY05 to S$0.2 million in Q2 FY06. PBIT for the Group s PE business also increased by S$0.1 million to S$1.3 million for the current period under review. Page 2 of 5

3 The increase in PE s PBIT for the current period is in line with the increase in revenue recorded in the current quarter. However, this was partially offset by a higher than expected foreign exchange loss of S$0.2 million due to the strengthening of Asian currencies against the US Dollars, higher depreciation of S$0.3 million due to the Group s expanded production capacity and higher staff cost of S$1.4 million. In comparison, the Group recorded an exchange gain of S$0.4 million in the corresponding period a year ago. The Group s finance costs also increased by S$0.3 million due to additional loans that were taken to fund the construction of the second Suzhou factory in China. The recent increases in interest rate have also made an impact on the Group s finance costs for the quarter. We would have achieved a higher net profit of S$0.6 million in Q2 FY06 against a net loss of S$0.3 million in Q2 FY05 if we do not take into account of our foreign exchange difference, added Mr. Hsu. Healthy Cash Flow The Group continues to maintain a healthy cash flow position. The Group managed to generate a positive cash flow amounting to S$3.3 million for the current quarter through higher profit and better management of working capital. The Group has a net cash and cash equivalent amounting to S$5.2 million as at 30 June Outlook Mr. Hsu said: We expect the operating conditions and marketing environment for the PE business continue to remain difficult. Any unanticipated appreciation of Asian currencies against the US dollar and the cost of raw materials will have an adverse impact on our performance for the remaining half of FY06. Page 3 of 5

4 About Allied Technologies Limited Listed on the Mainboard of the Singapore Exchange in June 2003, Allied Technologies is a 5-time winner of the prestigious Enterprise 50 Award. Allied Technologies commenced operations in May 1994, providing vertically integrated precision manufacturing services, including design and product development, prototyping services, tool and die fabrication and production, and mechanical sub-assembly services, to its pool of customers. Allied Technologies operates in two business segments: namely, (i) Precision Engineering business, which is its core business, and (ii) Assembly Related business, which commenced operations in The Precision Engineering business includes services provided in the design and fabrication of toolings, prototyping, mass production and sub-assembly of stamped metal parts and purchased components. The Assembly Related business relates to the assembly of electronics products. Allied Technologies has a total of 13 production facilities in Asia, namely, 4 in Singapore, 2 in Malaysia, 3 in China and 4 in Vietnam. Its Singapore operations are primarily involved in the provision of higher value-added, low volume, high mix services such as design and prototyping, whilst its facilities in the region concentrate on mass production activities or high volume, low mix services. Some of Allied Technologies major customers include the Hewlett-Packard Group, the Flextronics Group and the Venture Group. Other major customers include Taiwanese and Chinese companies such as the BenQ-Siemens Group and the Asus Group. Page 4 of 5

5 ISSUED ON BEHALF OF : Allied Technologies Limited BY : Citigate Dewe Rogerson, i.mage Pte Ltd 1 Raffles Place #26-02 OUB Centre SINGAPORE CONTACT : Ms Dolores Phua at telephone DURING OFFICE HOURS : (Office) AFTER OFFICE HOURS : (Handphone) dolores.phua@citigatedrimage.com August 4, 2006 Page 5 of 5