MTQ Corporation M05 has reported earnings of $3.7 million for its FY2023 ended March 31, almost tripling its FY2022 earnings of $1.3 million.
Earnings per share for FY2023 came to $1.72, up from 61 cents in the preceding financial year.
For the period, revenue was up by 61% to $83.8 million, with a smaller 52% increase in cost of sales to $56.8 million.
This was boosted by the $48.9 million in revenue generated in 2HFY2023, an increase of 80% y-o-y compared to $27.2 million in 2HFY2022 as activities continue to pick up, particularly in the Middle East where Bahrain posted its highest annual revenues.
In Singapore, the group also recorded significant growth mainly due to “spillover opportunities” from the Middle East.
Gross profit increased to $26.9 million in FY2023, up from $14.6 million in FY2022. Gross profit margins have also improved to 32.2% with MTQ operating at a high utilisation rate throughout the financial year.
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As at March 31, the group’s cash and cash equivalents stood at $13.5 million.
MTQ has proposed a final cash dividend of 0.5 cents per share, representing a payout ratio of approximately 29.1% of the group’s profit attributable to shareholders.
If approved at the next Annual General Meeting, it will be paid around August 2023.
Commenting on the financial results and outlook, Kuah Boon Wee, Group CEO says: “Looking ahead, we are committed to maintaining this momentum and to meet the needs of our customers. We will focus on investing in our people and our infrastructure to drive operational efficiencies.”
“The group will also accelerate its efforts to look for new areas of growth amid current high utilisation levels. The Middle East is an important area in our future growth,” Kuah adds.
MTQ recently announced that it received consent from JTC Corporation for the sale of its Pandan property and is working towards completing the disposal as soon as possible.
Following the completion of its relocation of operations to Tuas, MTQ says its focus will be on consolidating operations at Tuas and maximising efficiencies.
Shares in MTQ closed flat at 23 cents on May 10.
