Interplex Holdings’ H1 profit after tax soars 34% to US$20.9m

Favourable products mix and cost efficiency were a boon.

Powering past reduced revenue, Interplex Holdings (Interplex) posted a 34% YoY leap in profit after tax to US$20.9m in the first half of FY16.

According to the precision engineering company, the hike in earnings is thanks to improved gross margins due to favourable products mix, which partially offset the impact of higher cost per order dollar sales due to lower economies of scale.

Moreover, the company reaped benefits from its cost efficiency initiatives in the half-year as it secured an overall 1% YoY dip in general and administrative expenses, notwithstanding the consolidation of its electro-mechanical component solutions (EMCS) division's results for the half-year.

Meanwhile, Interplex’s revenue for the half-year, which included contribution from its EMCS division, slipped 5% YoY to US$465.4m. The company asserts that its segments took a hit from softer end-market demand across several industry sectors, mainly due to economic slowdown in China, which offset revenue gains in the automotive, telecommunications, medical, and life sciences and “others” product sectors.

With many of Interplex’s business wins in recent years are for products with longer life cycles, the company expects its portfolio of recent business wins to keep driving the company’s revenue forwards. The company asserts, though, that the full realisation of these new business wins will stay dependent on a health end-market demand.