A-Sonic Aerospace, which got out of the SGX Watch-list just June last year, plans to reward shareholders with a rare bonus issue.
Entitled shareholders will receive a new A-Sonic share for each five shares they hold. Nearly 17.8 million new shares will be issued.
Besides boosting the share capital, the proposed bonus issue is to reward and "give due recognition" to shareholders for their "loyalty, and continuing support".
"The proposed bonus issue, is expected to further increase the accessibility of investing in the company to a wider base of investors, thereby potentially encouraging trading liquidity and greater participation by investors, as well as to broaden the shareholder base of the company," the company says on Feb 26.
Separately, A-Sonic has announced earnings of $4.88 million for FY2022 ended Dec 2022, down 26.3% over the preceding FY2021.
Revenue in the same period was down 17.6% to $344.2 million.
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For 2HFY2022, earnings dropped 75.9% y-o-y to $753,000, on the back of a 41.2% decline in revenue to $142.9 million.
The company attributes the lower numbers to a drop in cargo volumes handled in China, as well as lower rates fetched. In the preceding FY2021, A-Sonic enjoyed a surge in its logistics business in line with the global industry.
The company, which is also in aviations, narrowed its losses for this segment to US$0.51 million for FY2022 from US$1.39 million in FY2021.
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Going forward, the company expects "great uncertainty and volatility, leading to a slow down in the global economy. Both our aviation and logistics businesses are highly correlated to the economic and market condition."
For FY2022, the company plans to pay a final dividend of 0.75 cent. For FY2021, its total dividend payout was 5.8 cents.
A-Sonic shares closed Feb 24 at 73 cents, unchanged for the day.
