The increased revenue from the medical devices segment, which grew by 35.7% to $40.1 million, was partially offset by lower revenue for the pipes and pipe fittings segment, which decreased 7.6% to $16 million from $17.3 million previously. The company attributed the lower revenue to the construction industry that is still recovering from the disruptions caused by the Covid-19 pandemic.
Other operating expenses, which fell by 16.9% to $6.1 million, also contributed to the improved earnings. The lower expenses are due to a reduction in marketing-related, travelling and entertainment expenses due to the Covid-19 pandemic, and lower foreign exchange loss.
Earnings per share (EPS) for the period stood at 96 cents, compared to 46 cents in 1HFY2020.
Ast at January 31, cash and cash equivalents stood at $4.8 million, while net asset value for the group stood at 12.92 cents, compared to 12.17 cents as of July 31, 2020.
No dividend has been recommended for the period.
In a statement dated March 15, the company says that long-term growth prospects in the medical devices outsourcing industry remain attractive and that it is well-positioned to “continue tapping opportunities in a post-Covid world”.
Shares in Vicplas closed 0.5 cents higher or up 1.96% at 26 cents on March 12.
