SINGAPORE - Electronics components distributor Serial System announced its first quarter profit surged by 92 per cent on the back of an increase in sales, and a currency translation gain.

It recorded net profit of US$5.2 million for the three months ended March 31, 2018 from US$2.7 million a year ago, on the back of a 22 per cent increase in sales to US$405.2 million.

Revenue growth was helped by its electronic components distribution business, which recorded sales of US$386.5 milion on higher contributions from all markets except South Asia, which faced "keen" price competition and weak demand for certain product lines.

The company also benefited from a US$1.6 million currency translation gain, as well as a US$1.2 million write-back of an earlier provision for obsolescent inventory.

Shareholders have approved the company's plans to spin off its majority-owned electronic components distribution subsidiary, Serial Microelectronics (HK) Limited, with a view to list it on the mainboard of the Hong Kong stock exchange.

"Listing SMHK will enable it to raise funds to support its own distribution business in China and Hong Kong," Serial System said, adding that the business currently accounts for some 70 per cent of the group's total revenue.