Venture net profit surged 30.9% in 2010

However, full year revenue declined from $3.4 billion in FY2009 to $2.7 billion in FY 2010.

According to Venture, the year-on-year revenue decline for FY 2010 was within expectation given the Group’s earlier guidance on its businessmix shifting towards technology services, products and solutions with greater design and engineering content.

The Group is pleased to report that full year profit attributable to shareholders of the Company rose 30.9% year-on-year to S$188.1 million.

In FY 2010, the Group registered sequential margin improvement every quarter, yielding a full year net margin of 7.0%. This compares favourably to FY 2009 net margin of 4.2%.

The Group’s improved profitability profile largely reiterated that its strategic direction is panning out well.

Diluted Earnings Per Share for FY 2010 increased to 68.5 cents from 52.4 cents in the prior year.

For the full year of 2010, the Group generated cash of S$253.1 million from operations before working capital changes. As at 31 December 2010, cash and cash equivalent balances stood at S$441.7 million. Excluding bankloans of S$203.2 million, the Group remained net cash positive at S$238.5 million.

As at 31 December 2010, the value of the Group’s inventories was S$513.1 million. The Group closed the year with trade receivables of S$524.0 million and trade payables of S$352.9 million.

At the year end, total shareholders’ equity of the Group amounted to S$1.9 billion with Net Asset Value per share at S$6.76.

4Q 2010 Performance
The Group reported revenue of S$705.5 million for 4Q 2010, compared to S$913.2 million for the corresponding quarter of FY 2009 and S$677.9 million for the prior quarter.

The Group registered net profit of S$54.2 million for 4Q 2010. The year-on-year profit jump of 222.4% is contributed by better 4Q 2010 performance as well as by a one-time non-operational charge in 4Q 2009. Compared to the prior quarter, net profit for 4Q 2010 improved by 11.4%.

Proposed Dividend
The Board of Directors has recommended an increased final dividend of 55 cents per share on a one-tier tax-exempt basis for the financial year ended 31 December 2010.

Subject to the approval of shareholders at the Annual General Meeting to be held on 28 April 2011, the proposed dividend will be paid on 26 May 2011.

Outlook
The Group is progressing well towards its vision to be a leading global provider of technology services, products and solutions. It is expanding its capabilities, enhancing its operational excellence, growing its technology and enlarging its network of market access.

The Group will continue in this strategic direction taking advantage of its diversity in product portfolio, technology services’ offering and customer base. This diversity will also provide opportunities for further growth.