Frencken Group rebounds to S$6.7m net profit in 3Q13

Turning around its 3Q12 net loss.

Frencken Group Limited (Frencken) has reported net profit of S$6.7 million for the three months ended 30 September 2013 (3Q13), reversing a loss after tax of S$1.5 million during the same period a year ago.

The company said this was achieved on the back of a 43.7% increase in revenue to S$119.6 million and a significant 243.9% jump in gross profit to S$19.5 million in 3Q13.

Higher sales from the Group’s Mechatronics and IMS Divisions drove Group revenue in 3Q13. The Mechatronics Division posted 10.7% year-on-year increase in revenue to S$73.4 million while the IMS Division’s revenue soared 173.1% to S$46.2 million in 3Q13.

With three straight quarters of profit growth, the Group recorded net profit of S$13.9 million for the nine months ended 30 September 2013 (9M13), compared to a loss of S$1.0 million in 9M12. Group net profit was driven primarily by the IMS Division which achieved a turnaround in its bottom line to with a profit of S$7.5 million in 9M13. The Mechatronics Division reported a net profit of S$7.0 million in 9M13.

At the end of 30 September 2013, Frencken had shareholders’ equity of S$200.5 million, equivalent to a net asset value of 50.36 cents per share.

While the performance in 3Q13 was strong, the results for 4Q13 are expected to be lower than 3Q13. Barring any unforeseen circumstances, the Group expects to remain profitable in 4Q13.