Catalist-listed Giken Sakata said Wednesday that group net profit for the financial year ended 31 August 2014 surged 474.7 per cent to $2.1 million from $446,000 a year ago, on stronger sales in higher margin products in the precision engineering sector.
The company added that its newly acquired oil and gas services business in Indonesia, Cepu Sakti Energy, will begin contributing to group earnings from the first quarter of its current 2015 financial year.
Giken Sakata reported revenue of $66 million for last financial year, down from $126.8 million in the year-ago period mainly due to the discontinuation of a large project in March 2014.
But the resulting change in product mix resulted in 23.8 per cent growth in gross profit to $11.7 million. Gross profit margin improved from 7.5 per cent for FY2013 to 17.0 per cent for FY2014.
Barring unforeseen circumstances, Giken Sakata said it expects sales of the higher margin products to grow going forward.
Net profit attributable to shareholders rose to $2.1 million in FY2014 from $400,000 in FY2013, an increase of 474 per cent.
Commenting on the its FY2014 performance and outlook, the company's chief executive office Sydney Yeung said: "Giken Sakata has delivered a stellar FY2014 performance thanks to good order flow and strong client relationships, as well as the full recapitalisation of the company. The outlook for the precision engineering business remains attractive and we are looking positively at FY2015.