Venture Corp posted a net profit of $43.4 million in the second quarter, up 20.3 per cent from the same period a year earlier, owing to "increased traction" with several customers, it said yesterday.

Revenue in the three months to June 30 climbed 3.4 per cent to $683 million as the contract manufacturer expanded its manufacturing services and undertook more design and engineering work, instead of simply taking customer blueprints to the manufacturing floor.

This was in spite of "persistently challenging economic conditions", the provider said in a filing to the Singapore Exchange.

Research and development (R&D) expenses - which comprised prototyping-related tooling and services - fell 28.7 per cent to $6.2 million due to lower customer requirements, the group said, though it did not elaborate on what these requirements were.

Meanwhile, employee benefit expenses, which include R&D manpower costs, rose 7.7 per cent to $70.6 million last quarter from a year ago.

During the quarter, Venture Corp generated cash from operations of $41 million, up from $33.6 million in the second quarter last year.

Mr Wong Ngit Liong, chairman and chief executive of Venture Corp, said in a statement: "The group's keen focus on its differentiated and distinctive strategies underpinned its overall performance over the past three years. The profit margin improvement in recent quarters has been gratifying."

The group added: "Venture is well positioned to invest in building greater depth and strengths in engineering and R&D, as well as advanced manufacturing capabilities and supply chain processes."

Second quarter earnings per share was 15.7 cents, up from 13.1 cents a year earlier. Net asset value per share was 643.7 cents as at June 30, down from 684.7 cents as at Dec 31 last year.

The results were announced after the market closed. The counter closed one cent higher at $8.90 yesterday.