Lincotrade and Associates Holdings BFT has reported earnings of $1.8 million for the 1HFY2024 ended Dec 31, 2023, reversing from its loss of $9.5 million in the corresponding period last year.
Earnings per share stood at 1.04 cents in 1HFY2024, compared to a loss of 5.87 cents per share in 1HFY2023 when the company recorded a one-off non-cash reverse takeover (RTO) expense of around $10.8 million.
For the half-year period, revenue increased 4.6% y-o-y to $42.7 million, with cost of sales also up by 4.5% y-o-y to $38.2 million.
Gross profit increased by 5.2% y-o-y to $4.5 million in 1HFY2024, while gross profit margin (GPM) increased marginally from 10.5% in 1HFY2023 to 10.6% in 1HFY2024. The higher GPM achieved in the period was mainly due to higher proportion of revenue generated from the company’s commercial segment, which generally yields higher margins.
As at Dec 31, 2023, the company’s order book stood at $47.0 million while cash and cash equivalents stood at $15.7 million.
For the 1HFY2024, Lincotrade has announced a maiden interim dividend of 0.38 cents per share following its adoption of a dividend policy to distribute at least 20% of net profit attributable to shareholders.
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Managing director Tan Jit Meng says: “Our consistent performance and healthy liquidity position have allowed us to declare our maiden interim dividend and announced the adoption of a dividend policy today. In the meantime, I would like to thank all of our shareholders for their patience.”
“It has been more than a year since our transition into a listed company and we are pleased to report another positive set of first half results — despite a continuously challenging market environment, which underscores the strength of our business model and project execution capabilities,” he adds.
Tan notes that the performance of Lincotrade’s commercial segment has stood out and is a testament to the company’s business strategy to expand its presence in this area. “To enhance our value propositions, we also pushed ahead with our strategic priorities and have made important progress in recent months that bolster our outlook for long-term growth.”
Shares in Lincotrade closed unchanged at 19.9 cents on Feb 14.
