BH Global: Reported FY10 Rev with weak bottom-line results, despite topline being in-line with expectations. Rev at $103m, +1%YoY, while Net Profit at $11.3m, -23%YoY. Poorer performance was attributed to grp’s Supply Chain Management Division, which experienced slowdown in demand for its products, due to the delayed impact of financial crisis on marine-related supply business….
Contributions from Manufacturing Division (marine switchboards and galvanized steel wire) increased by 17% to $19.0m, particularly from the galvanised steel wire segment that successfully secured more orders from the Middle East. Newly set up since 1QFY10, the Engineering Services Division started off well and produced its maiden revenue amounting to $17.2m….
The strategic change in product mix resulted in a healthy yet lower overall gross margin of 32% (FY09: 35%), due to the increased contribution from Manufacturing and Engineering Services Divisions, which typically yield lower margins. Following the recent listing of grp’s TDRs, the proceeds raised has further strengthened the Group’s financial position, and as at 31 December 2010, BH Global maintains a net cash position of $19.1 million, and at current levels, grp trades at an ex-cash of 6.4x vs its historical PE of 8.1x
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