SERIAL SYSTEM went through a tough 4Q2015 with a slew of factors -- especially forex volatility -- contributing to a 78% fall in its net profit to US$1.027 million.
Executive chairman Derek Goh @ FY15 results briefing in Tower Club. Photo by Janine YongBut its full-year revenue of US$1.22 billion, up 18%, was a record and brought cheer to the company. (By the way, Chairman Derek Goh, 54, has made no secret that his ambition is for the company to achieve US$5 billion annual sales -- before he retires).
The revenue increase in FY15 was aided by recently-acquired subsidiaries as well as organic growth.
Serial, an electronic components and consumer products distributor, reported a 31% fall in its FY2015 bottomline to US$11.035 million.
Associate companies Achieva Technology and Bull Will contributed about US$3 m in losses.
Serial chairman Derek Goh, 54: Ambition is for Serial to achieve US$5 b in annual sales -- before he retires. File photoBut Mr Goh expressed optimism that Achieva (from being 49%-owned last to being 100% owned since 27 Jan 2016) will be able to improve its performance this year owing to better management of its forex risks, which had tripped up the company in 2015.
Mr Goh is optimistic too of continued growth in group revenue in 2016, in part arising from the consolidation of Achieva's results and from organic growth.
The official word is: "Despite the current headwinds in the global semiconductor industry, the Group is confident of prospects in the longer term, given the growing popularity of emerging technologies, especially those for wearable devices and the Internet of Things, all of which require integrated circuits and chips."
Serial has proposed a final dividend of 0.5 Singapore cent a share, compared to the 0.75 cent paid for FY14.
Together with an interim dividend of 0.35 cent a share, the dividend for FY15 totals 0.85 cent a share, compared to 1.05 cent a share in FY14. (If Serial maintains a dividend of 0.85 cent a share in 2016, the yield would be 7.1% based on the current share price of 12 cents).
Serial has been consistent in paying out 40-50% of its earnings as dividends. This, however, has contributed to a gearing of 1.16 as at end-2015, as have higher borrowings to support revenue growth.
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Some interesting developments that may pan out in the near term, as suggested by Derek Goh, Serial's executive chairman, at the FY15 results briefing; |
