SINGAPORE (Feb 22): Trek 2000 International recorded a 1.5% increase in its FY17 earnings to US$6.16 million ($8.14 million), compared to US$6.07 million in FY16.
Revenue was 32.1% lower at US$112.6 million from US$165.7 million in the previous year, mainly due to decrease in the group’s Interactive Consumer Solutions (ICS) division and the disposal of Racer Group in the first quarter of FY2017.
Cost of sales was 35.3% lower at US$95.3 million, bringing gross profit for FY17 to US$17.4 million, 5.8% lower than US$18.4 million in the same period last year.
Interest income increased by 67.2% to US$1.11 million from US$0.66 million a year ago.
Research and development expenses decreased by 27.4% to US$2.11 million compared to US$2.91 million last year, mainly due to management consolidation of key R&D projects.
Marketing and distribution expenses were also 24.2% lower at US$1.91 million from US$2.52 million in the previous year, mainly due to decrease in marketing activities upon the disposal of Racer Group in the 1Q17.
Other expenses saw a significant increase to US$1.67 million compared to US$0.01 million last year, due mainly to losses incurred upon disposal of Racer Group in 1Q17 and quoted investments.
As at Dec 31 2017, the group’s cash and cash equivalent amounted to US$37.0 million.
The group has declared a first and final cash dividend of 1 cent per share, which will be payable on May 16.
Henn Tan, executive chairman and CEO of Trek 2000 says, “Amidst a challenging business environment, we continue to yield positive results and seek to explore strategic partnerships to ensure the long-term sustainability of the Group’s operations. While we apprehend the presence of global business headwinds that may prevail, we remain cautiously optimistic of our prospects.”
Shares in Trek 2000 closed at 24 cents on Thursday.
