S i2i proposes cash payout of 72.9 cents per share to shareholders

S i2i non-executive chairman Dr Bhupendra Kumar Modi.
S i2i non-executive chairman Dr Bhupendra Kumar Modi. PHOTO: ZAOBAO

SINGAPORE - Mainboard-listed S i2i has announced a plan for a proposed cash payout of S$10 million to shareholders via a capital reduction exercise.

The firm, which offers mobile telecommunication solutions, said this works out to 72.9 cents per share, and that it will be paid out of its cash balances declared in its fourth quarter 2015 financial results.

"This reflects the Group's commitment for shareholders," the firm said in a statement on Monday (Feb 29). "The capital reduction will not result in any cancellation of shares or a change in the number of shares held by shareholders."

S i2i added that the group's financial position is expected to remain healthy following the capital reduction, and it believes the firm is able to maintain a sufficient cash balance to support its existing operations and to service debt obligations as and when they are due.

For the fourth quarter ended Dec 31, S i2i posted a net profit of S$3.2 million, reversing a S$47.1 million loss in the corresponding period a year ago.

Turnover in the fourth quarter came in at S$83.4 million, down 30.5 per cent from the previous year.

For the full 2015 financial year, the firm recorded a net profit of S$960,000, compared with the S$55.8 million loss in 2014. Revenue for 2015 was S$411.9 million, a decline of 8.3 per cent from S$449.3 million a year before.

Said S i2i non-executive chairman Dr Bhupendra Kumar Modi: "I am heartened that in the months following my return, the board and the management has made progress with the divestment of three non-core businesses, continuous cost control and hence return to profitability."

The firm said its board members and senior management will "continually monitor and evaluate the group's turnaround progress, with a view towards maintaining profitability and to exit the SGX-administered watch-list".