Nam Lee posts 17.4% rise in full-year profit to $12m

SINGAPORE - Fabricated metal producer and supplier Nam Lee Pressed Metal Industries has posted a 17.4 per cent gain in full-year net profit to $12 million for the year ended Sept 30, as revenue rose 10.5 per cent to $156.8 million.

The higher revenue was mainly attributable to increased contributions from the group's aluminium segment, the group announced late on Wednesday night (Nov 28).

On a per share basis, earnings came in at 4.956 Singapore cents, from 4.240 cents for the year-ago period.

A final cash dividend of two cents, and a special cash dividend of 0.5 cent has been declared for the current financial period, versus a final cash dividend of one cent, and a special cash dividend of one cent for the preceding year.

Administrative costs increased to $1 million for FY2018 from $10.2 million for FY2017, mainly due to higher accrued personnel cost, while other operating costs decreased to $2.2 million from $5.5 million for the same period. The fall in other operating costs was mainly due to the absence of provision for a one-time product replacement costs for a prior-year project, Nam Lee said.

Looking ahead, the company expects its aluminium industrial product business to be affected due to uncertainties in the global economy.

"Intense market competition, continuing government cooling measures, and the tight labour market in Singapore continue to pose challenges and exert pressure on the profit margin of our building product business," Nam Lee added.

Nonetheless, barring unforeseen circumstances, the group expects to remain profitable.

Shares in Nam Lee closed down 5 per cent, or two cents to 37.5 cents apiece on Wednesday, before the release of its financial results.