Yongnam Holdings fails to extend six-year record profit streak

FY12 profit amounted to anemic S$43.5m.

In a release, Yongnam Holdings Limited (Yongnam), a structural steel contractor and specialist civil engineering solutions provider, announced a net profit of S$43.5 million on the back of revenue of S$301.6 million for the financial year ended December 31, 2012  (FY2012). "This set of comparatively lower numbers was reported after six  consecutive years of record profits," said Yongnam. 

Yongnam explained that a number of major Structural Steelwork projects were substantially completed in the previous year (FY2011), and that slower progress in certain ongoing Structural Steelwork projects in FY2012 also affected the Group’s revenue, notwithstanding a marginal
increase in contribution from Specialist Civil Engineering projects.

Commenting on the Group’s full year performance, Mr Seow Soon Yong, Chief Executive Officer of Yongnam, said, “We had delivered six consecutive years of outstanding bottomline performance. The pace at which Yongnam is pursuing new projects has not changed. We will continue to step up our efforts in pursuing new projects both in Singapore and overseas.

Having secured a number of landmark projects in FY2012, Yongnam’s order book remains strong at S$400.6 million.The Group is optimistic that it will continue to perform reasonably well in FY2013.”

Deloitte said the Board has recommended to maintain a dividend of 1.0 cent per share for FY2012. This represents a pay-out ratio of 29.0% of the Group’s net profit attributable to shareholders and a dividend yield of 3.6% (based on Yongnam’s last traded price of S$0.28 on February 25, 2013).