Neo Group reports net profit of $7.4 million, proposes dividend of 1.05 cents per share

Mr Neo Kah Kiat, 41, founder of catering giant Neo Group Limited. -- ST PHOTO: TERRENCE LIM  
Mr Neo Kah Kiat, 41, founder of catering giant Neo Group Limited. -- ST PHOTO: TERRENCE LIM  

SINGAPORE - Food and catering solutions provider, Neo Group Limited, has reported a net profit of $7.4 million for a 14 months period ended Mar 31, 2015 with a record revenue of $77.4 million, driven by a growth in its food catering business and rise in food retail revenue.

The growth was achieved notwithstanding expenses in line with business growth, the company said Thursday in a release.

Neo achieved a 47.1 per cent growth in its food catering segment to $57.4 million coupled with a 51.6 per cent rise in food retail segment to $19.2 million which drove the top-line surge in the 14-month period compared to $52.4 million for financial year ended Jan 31, 2014.

The net profit growth was a 15.7 per cent rise in the 14-month period from $6.4 million in 12-month period ending Jan 2014.

The Group's earnings per share improved to $5.14 cents from $4.44 cents in FY2014, while net asset value per share was boosted to $16.79 cents as at 31 March 2015 from $14.23 cents as at 31 January 2014.

The group has also proposed final cash dividend of $1.05 cents per share, bringing total dividends declared for the 14-month period to $2.56 cents per share.

The group, which recently acquired a 55 per cent stake in Thong Siek Holdings (TSH), a maker, distributor and retailer of surimi-based seafood products, is also planning to revitalise TSH's 'DoDo' brand of frozen foods to reach out ot new customer segments, its Founder, Chairman and CEO Mr Neo Kah Kiat said.

"In addition, TSH's expertise in food manufacturing will further strengthen our central kitchen's operations for higher quality consistency and at the same time, enabling us to reap economies of scale," he said.

Join ST's Telegram channel and get the latest breaking news delivered to you.