Mooreast Holdings 1V3 has reversed to profit after tax of $1.4 million for the FY2022 compared to the loss of $2.3 million in the year before.
During the 2HFY2022, the Catalist-listed group also reversed into profitability of $501,000 from the loss of $2.7 million in the same period before.
Revenue for the 2HFY2022 more than doubled to $14.8 million from $7.0 million thanks to higher revenue growth across all segments.
Gross profit for the 2HFY2022 also more than doubled to $6.5 million from $3.0 million in line with the higher revenue. Gross profit margin (GPM) increased by one percentage point to 44% during the period.
Interest income increased by 4.5 times to $164,000, from $36,000 previously due to the placement of fixed deposits from the proceeds of the convertible note in the bank in FY2022.
Other income grew by 33% y-o-y to $508,000 due to higher gain from sales of plant and equipment and government grants for research & development, job support scheme as well as a grant from the Monetary Authority of Singapore (MAS) for equity market Singapore to offset the group’s listing expenses.
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Profit before tax came in at $930,000 from the loss of $2.7 million in the 2HFY2021.
FY2022 revenue grew by 96% y-o-y to $27.8 million due to higher revenue contributions across all segments.
FY2022 gross profit grew by 81% y-o-y to $10.9 million in line with the revenue increase although GPM fell by three percentage points y-o-y to 39%. The lower GPM was mainly higher third-party cost of goods, increased cost of fabrication, and lower selling prices in the marine supplies and services division amid intense competition.
Interest income surged by 13.7 times to $492,000 from FY2021’s $36,000 same as the reasons for the interest income growth during the 2HFY2022.
Other income surged by 2.9 times to $2.7 million from $925,000 same as the reasons for the surge in other income during the 2HFY2022.
FY2022 profit before tax stood at $2.0 million from FY2021’s loss of $2.1 million.
Earnings per share (EPS) for the FY2022 and 2HFY2022 stood at 0.53 cents and 0.19 cents respectively.
As at Dec 31, 2022, cash and cash equivalents stood at $19.0 million.
No dividend has been recommended for the period.
Looking ahead, the group says it remains “cautiously optimistic” as its business momentum continues to recover from the pandemic. Its yard dividend is also expected to increase its market share amid a consolidation of service providers within Singapore’s marine and offshore sector. To this end, the group says it intends to enhance its facility and widen its range of services and continue to generate synergistic value with its other business divisions.
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“We are proud to have delivered a strong set of results in our first full year as a listed company. Despite market volatility, we have progressed with our renewable strategy. We secured our first commercial-scale floating renewable energy project since listing, with plans to set up a facility in Scotland to better service our customers in Europe,” says Sim Koon Lam, CEO of Mooreast.
“Moving ahead, we are focused on enhancing our capabilities, generating synergy amongst our various business segments, and building our track record in the renewable energy space,” he adds.
Shares in Mooreast closed flat at 17.4 cents on Feb 23.
