Tee International reports 65.1% drop in Q4 net profit

SINGAPORE - Higher costs dragged dow n fourth-quarter net profit for Singapore mainboard-listed Tee International, an engineering and property group.

Its earnings for the three months to May 31 dropped 65.1 per cent over a year ago to $2.3 million, while revenue fell 47.6 per cent to $46.6 million, it said on Wednesday.

Earnings for the full year to May 31 fell 59.3 per cent to $5.4 million, as revenue dipped 6.3 per cent to $202.8 million.

The group reported a rise in administrative expenses due to higher staff costs for its 2014 financial year. The higher staff costs were in turn mainly attributable to the group's overall business expansion, including buying crane company Interlift Sales last year.

Higher costs were also incurred in the same financial year for certain projects, which are nearing completion.

Tee International also announced on Wednesday that it will sell its 55 per cent stake in Interlift Sales for $3.2 million.

The group said in a statement that it wants to focus on businesses that are in line with its core competencies in the engineering and construction, real estate and infrastructure sectors.

Mr CK Phua, group chief executive said in a statement: "Due to the lumpy nature of our engineering business revenue, our top line was weakened as a result of lesser revenue being recognised in the financial year 2014."

He added that that the group is expecting a healthy order book for the next financial year, as it has won new contracts recently, and may have new orders coming in.

Earnings per share for the fourth quarter was 0.46 cents, from 1.4 cents in the same period the previous year.

Net asset value per share for the group inched up to 22.9 cents as at May 31, from 20 cents as at May 31 last year.