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For the quarter ended 31 March 2016, Singapore-based EMS firm Venture Corp. Ltd registered revenues of S$630.7 million, an increase of 3.6% year-on-year. The Group registered profit before tax of S$42.5 million, an increase of 10.7% compared to the corresponding quarter of the prior year.
Based on tax incentives granted, an income tax expense of S$6.6 million was recorded for the reported quarter. The Group registered net profit of S$35.8 million, an improvement of 10.1% year-on-year, while net profit margin was 5.7%. Profit improvement for the reported quarter continued to be driven by successful execution on a number of strategic initiatives including the pursuit of operational excellence and value creation.
Financial position and cashflow
During the quarter, Venture generated cash from operations of S$100 million, compared to S$40 million in the same period last year. Working capital for the reported quarter closed at S$699.5 million, lower by S$74 million compared to the quarter ending 31 December 2015, largely due to lower trade receivable balances for the reported quarter. Through concerted collection efforts, trade receivables decreased by S$63.9 million to S$506.5 million as at 31 March 2016. The Group recorded higher cash and bank balances of S$527.0 million at the end of the reported quarter (S$459.3 million as at 31 December 2015) with a corresponding increase in net cash of S$77.5 million to S$401.7 million (S$324.2 million as at 31 December 2015).
As at 31 March 2016, equity attributable to owners of the company was S$1.887 billion and net asset value per share was S$6.82.
Venture made good progress in improving its profitability notwithstanding the challenging global economic environment. This was largely underpinned by strong R&D initiatives, innovation in product and solution development and sustained operational excellence. These performance imperatives have enabled the group to increase its market share and capture additional opportunities across its diversified and healthy customer base.
The company continues to pursue excellence relentlessly and to provide total customer satisfaction. It will also continue to enhance its healthy balance sheet and competent cash generation. It remains well positioned to seize emerging opportunities and to build sustainable and profitable growth.