Sunningdale Tech has, for the FY2020 ended December, posted earnings of $31.5 million, almost four times higher than earnings of $8.0 million for the FY2019.
Earnings for the 2HFY2020, similarly, spiked 180.6% to $23.2 million from the 2HFY2019’s earnings of $8.3 million.
2HFY2020 revenue increased 7.8% y-o-y to $378.4 million due to growth across all business segments, led by growth in revenue from the Mould Fabrication segment.
Gross profit for the 2HFY2020 increased 36% y-o-y to $56.4 million, while gross profit margin (GPM) stood higher at 14.9% from 11.8%. This was due to the tightening of costs and the implementation of shorter work weeks in plants where orders were low, and concession on social security contributions by the Human Resource and Social Security Bureau in China. Improvement in operational efficiency also contributed to the higher GPM.
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The 88.1% y-o-y increase in other income was mainly attributable to government grants.
Excluding the impact from net foreign exchange loss, net retrenchment costs, onerous rent, penalty on early termination of rental contract, net allowance for the impairment on PPE, net gain on the disposal of PPE, non-recurring professional fee, onerous rent, penalty on early termination of rental contract, amortisation of customer relationship intangible assets, government grants due to Covid-19 and concession on social security contribution and foreign worker levy, core net profit would have been $21.0 million for 2HFY2020 as compared to $11.2 million for 2HFY2019, representing a 86.3% y-o-y increase.
FY2020 revenue fell 3% y-o-y to $653.5 million due to lower contributions from its Automotive segment, and mitigated by its Healthcare and Mould Fabrication segments.
However, the surge in the group’s full-year bottom line was due to a series of one-time non-recurring items including reduced payroll, temporary salary reduction, concessions on social security contribution in China and foreign worker levy in Singapore.
Grants were also received from the Singapore government, which contributed a further $6.2 million to the group’s net profit.
Gross profit increased 21.1% y-o-y to $90.0 million. GPM increased to 13.8% from 11.0% in the FY2020.
Excluding the impact from net foreign exchange loss, net retrenchment costs, onerous rent, penalty on early termination of rental contract, net allowance for the impairment on PPE, net gain on the disposal of PPE, non-recurring professional fee, onerous rent, penalty on early termination of rental contract, amortization of customer relationship intangible contract, government grants due to Covid-19 and concession on social security contribution and foreign worker levy, core net profit would have been $22.9 million for FY2020 as compared to $13.3 million for FY19, representing a 72.5% y-o-y increase.
Earnings per share for the 2HFY2020 and FY2020 stood at 11.85 cents and 16.23 cents respectively.
As at end-December, cash and cash equivalents stood at $125.8 million.
No dividend was declared, versus five cents per share for FY2019.
Shares in Sunningdale closed 1 cent lower or 0.6% down at $1.64 on Feb 26.
See: Koh Boon Hwee succeeds in Sunningdale privatisation offer, shares to stop trading on Mar 8, Sunningdale Tech needs to pivot fast; additional capex required: Koh Boon Hwee, Sunrise Technology answers FAQs pertaining to Sunningdale Tech's scheme of arrangement, says scheme consideration is 'final' and Sunningdale and Sunrise Tech increase privatisation offer to $1.65 in cash per scheme share or 1,650 shares in Sunrise
