The lower earnings came as a result of a 14.75% y-o-y decrease in 1HFY2024 revenue of $195.7 million. The lower revenue was due to declines across the group’s segments, except for its Testing and Inspection (T&I) segment.
Gross profit decreased by 8.3% y-o-y to $32.3 million in 1HFY2024, although gross profit margin (GPM) for the period improved by 1.17 percentage points y-o-y to 16.51% due to lower deliveries of loss making projects.
Other operating income in 1HFY2024 decreased by 26.2% y-o-y to $2.8 million mainly due to the absence of fair value gain on derivative financial instruments during the period, compared to the fair value gain of $2.0 million recorded in 1HFY2023.
Other operating expenses for the period increased by $1.9 million, largely attributable to a fair value loss on derivative financial instruments, partially offset by the lower loss allowance for trade receivables in 1HFY2024.
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Meanwhile, finance costs held relatively stable at increased to $1.1 million, decreasing slightly by $33,000 due to lower utilisation of bank borrowings to finance purchase of copper during 1HFY2024.
Profit before income tax decreased by 36.9% y-o-y to $9.4 million.
As at Dec 31, 2023, cash and cash equivalents stood at $25.9 million.
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An interim cash dividend of 0.75 cent per share, payable on March 13, has been declared. This is unchanged from the corresponding period the year before.
Shares in Tai Sin Electric closed flat at 39 cents on Feb 7.
