Spindex Industries has reported net profit of $15.6 million for FY2024 ended June 30, up 43.8% y-o-y.
In financial statements released on Aug 20, Spindex posted full-year revenue of $180.3 million, 1.7% lower y-o-y, while profit before tax grew 38.3% y-o-y to $20.4 million.
Spindex Group is an integrated solution provider of precision-machined components and assemblies for use in machinery and automotive systems, imaging and printing equipment, consumer-lifestyle and healthcare products
Demand was uneven across the group’s business sectors during the financial year. Both automotive and machine tools under the MA business sector benefited from a general restocking in FY2024 and the sector grew 11.6% y-o-y to $90.7 million.
Although revenue from the IP business sector declined 16.4% y-o-y to $26.6 million for FY2024, the business sector posted a marginal revenue growth in the second half year.
Following weak demand for components in FY2023, the resumption of production of imaging and printing equipment in FY2024 contributed to some demand in 2HFY2024.
See also: Spindex net profit up 4.7% y-o-y to $6.3 mil in 1HFY2024
The CP business sector comprising domestic appliances, consumer electronics, health and leisure equipment and data storage, continued to be affected by the general business slowdown and weaker demand. In FY2024, revenue for the CP business sector declined 10.4% y-o-y to $63.0 million.
Distribution and selling expenses fell 2.3% y-o-y in line with the lower group revenue. Administrative expenses rose 6.0% for the year and the increase was partly due to a lower foreign exchange gain, offset by the absence of any retrenchment expenses incurred in FY2024.
The repayment of short-term loans in FY2023 lowered financial expenses and the continuing improvement in the operations of the joint venture in Vietnam resulted in a modest share of profit, says the company.
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With higher profit before tax and lower depreciation for property, plant and equipment, operational cash flow before changes in working capital improved to $32.8 million. However, an increase in trade receivables, pre-payments and trade payables reduced the cash flow from operations to $29.4 million.
Although a higher amount of cash was used to purchase property, plant and equipment, net cash used in financing activities declined substantially due to lower dividend payment and marginal repayment of bank loans. This contributed substantially to the net increase in cash and cash equivalents of $14.7 million for the year.
A reduction in financing activities led to the increase in cash and cash equivalents of $60.9 million from $46.4 million in FY2023. Total loans and borrowings of $4.7 million as at June 30 remained low, says the company, and Spindex “continues to be in a strong financial position to selectively invest in expanding the business”.
Earnings per share rose to 13.49 cents in FY2024, up from 9.38 cents this time last year. Spindex has proposed a first and final dividend of 2.7 cents per share, up from 0.5 cents per share this time last year.
The proposed dividends, if approved at the 37th annual general meeting to be held on Oct 25, will be paid on Nov 18.
Shares in Spindex closed flat at 86.5 cents on Aug 20.
