SINGAPORE (June 29): CSC Holdings, the engineering solutions provider, reported a net profit, or earnings of $1.7 million in 4Q19/20, a turnaround from its $6.9 million loss the year before.
This marks the group’s fourth consecutive quarter of profitability.
Earnings per share (EPS) for 4Q20 and FY20 amounted to 0.06 cent and 0.23 cent respectively.
For FY20, the group made a net profit of $5.6 million, compared to the $19.3 million loss the year before.
Group revenue for 4Q20 grew 18.4% y-o-y to $88.5 million on the back of a “healthy demand” for the group’s services, and an improvement in tender prices.
Group revenue for FY20 grew 6.1% y-o-y to $342.8 million.
Quarter-on-quarter, CSC Holdings recorded a 5.5% increase in revenue compared to 3QFY20 as a result of higher contribution from the its equipment trading division.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for 4Q20 surged 5,550% to $11.3 million from 4Q19’s $0.2 million. EBITDA for FY20 surged 334% to $40.8 million from $9.4 million FY19.
Gross profit and gross profit margin (GPM) for 4Q20 rose over 200% at $12.9 million and 14.6%, compared to $4.3 million and 5.7% in 4Q19.
“The higher gross profit and GPM reflect the improvement in tender prices and business activity,” says CSC Holdings, in a Monday statement.
CSC Holdings recorded lower other income of $0.3 million for 4Q20 compared to the $0.5 million in 4Q19 mainly due to a lower gain from the disposal of old equipment.
In FY20, the group’s income came in at $2.2 million, compared to the $1.9 million the year before. The increase took into account a $1.3 million gain from the disposal of old equipment, along with a profit distribution of $0.2 million from the group’s 5% owned mixed-use property development project in Iskandar Malaysia.
As at March 31, cash and cash equivalents stood at $14.3 million.
Looking ahead, the group says it will “focus on capital and cash flow management to mitigate and manage the financial implications arising from COVID-19”.
As at June 26, the group’s order book stands at approximately $160 million.
Shares in CSC Holdings closed 0.1 cent higher, or 6.3% up, at 1.7 cents.
