Micro-Mechanics hit 31.5% profit jump to $1m

Earnings outpaced the company's revenue.

According to a release, Micro-Mechanics reported a 31.5% gain in net profit to S$1.0 million for the three months ended 31 December 2012 (“2Q13”), from S$0.7 million in the same quarter last year.

Net profit in 2Q13 rose at a faster pace than revenue, which grew 6.4% to S$9.3 million, driven by the Group’s ongoing initiatives to boost productivity and the efficiency of its manufacturing operations. This translated into a significant 4.2 percentage point expansion of its gross profit (GP) margin to 48.6% from 44.4% in 2Q12.

For the six months ended 31 December 2012 (“1H13”), the Group’s net profit increased 8.4% to S$2.2 million from S$2.0 million in 1H12 on stable revenue of S$19.2 million.

It has declared an interim dividend of 1.0 cent per share (one-tier tax exempt) amounting to S$1.4 million.

The dividend will be paid on 20 February 2013 to shareholders on record as at 4 February 2013. The Group has paid interim and final dividends totaling 3.0 cents per share for each of its last three financial years.

As at 31 December 2012, the company's balance sheet had total assets of S$42.8 million, shareholders’ equity of S$36.2 million, cash and cash equivalents of S$7.1 million and no bank borrowings.