Record turnover of SGD20.4 million achieved in FY2011 at an impressive year-on-year growth of 69.3% or SGD8.4 million with net profit accelerated to an unprecedented high of SGD7.5 million from a loss of SGD3.3 million in FY2010

 

Singapore, 25 May 2011 – Singapore Exchange Mainboard-listed Addvalue Technologies Ltd (“Addvalue” or the “Group”), a leading global developer and manufacturer of mobile satellite terminals supporting coverage provided by premier mobile satellite communication operators such as Inmarsat plc and Thuraya Telecommunications Company, announced its fourth financial quarter results (“Q4 FY2011”) and its full year results (“FY2011”) ended 31 March 2011.

Q4 FY2011 and FY2011 Results Review

The focused business pursuit of the Group has led it to continually deliver a commendable set of results since the last financial quarter of FY2010.

Against the continued robust sales of a wider range of Inmarsat-centric land and maritime products, the Group turned in a record turnover of S$20.4 million for FY2011 (compared to that of S$12.0 million for FY2010), notwithstanding a lower turnover of S$4.3 million recorded for Q4 FY2011 (compared to that of S$8.0 million for Q4 FY2010) chiefly as a result of an one-time supply of a large quantity of SabreTM 1 BGAN Terminals for the Philippines’s National Elections held in May 2010.

As a result of the marked increase in the annual turnover, the gross profit of the Group nearly tripled from S$3.7 million in FY2010 to S$10.0 million in FY2011. Due principally to sales with better mix of higher yielding products, the gross profit margin of the Group also improved significantly from 30.8% in FY2010 to 49.0% in FY2011 and from 29.2% in Q4 FY2010 to 51.4% in Q4 FY2011.

Commenting on the outstanding performance of the Group, Dr Colin Chan Kum Lok, Chairman and CEO of Addvalue, remarked that “after years of striving hard and staying focused, we have finally emerged with a sterling set of commendable results which saw the net profit of the Group increased by more than ten-fold from S$0.3 million in Q4 FY2010 to S$3.6 million in Q4 FY2011 and reversed startlingly from a net loss of S$3.3 million in FY2010 to a record net profit of S$7.5 million in FY2011. The turnaround in profitability also transforms a loss per share of 0.38 cents in FY2010 to an earnings per share of 0.78 cents in FY2011”.

The exceptional set of results achieved coupled with the capitalization of share capital undertaken by the Group in FY2011 had greatly improved (i) the working capital position of the Group which reversed from a negative S$2.8 million as at 31 March 2010 to a positive S$3.2 million as at 31 March 2011; (ii) the gearing of the Group which drastically improved from 95.2% as at 31 March 2010 to 28.3% as at 31 March 2011; and (iii) the NTA position of the Group which reversed from a negative S$5.7 million as at 31 March 2010 to a positive S$3.6 million as at 31 March 2011.

Prospects

Against sustaining robust demands for the Group’s current range of products, the Group will continue to work closely with world leading satellite operators and its distribution partners to promote, market and distribute these products and expand its distribution networks to further enhance and entrench its global coverage.

“Building upon our strengths of technical expertise, we will also continue to develop innovative products and services and, through forging of partnerships, expand our market presence and increase our market shares in the industry,” added Dr Colin Chan.

Specifically over the next 12 months, the Group is on track in delivering the following:

New Satellite Communication-related Products in the Development Pipeline

At least two mobile satellite communication terminals are currently under development by the Group and are expected to be commercialised within 2011.

The Group expects to launch its first land vehicular BGAN terminal for a wider market concerning vehicular fleet management, news and broadcasting companies, companies engaging in exploration and expedition activities, rescue and disaster response organisations and military units around the world.

In addressing the increasing needs of even more budget-conscious users, the Group also aims to launch a Thuraya-based terminal at affordable end user price. This product shall be bundled with attractive air time deals offered by Thuraya exclusively to attract users, especially those in South East Asia and East Asia.

Recent Business Development and Prospects of Mobile Satellite Business Opportunities in East Asia

The Group is also in discussion with several communications companies in East Asia to develop satellite terminals suited for the market there. With the Group providing the core modules to these partners, these products will be manufactured by these partners in East Asia.

With a view to seize the immense opportunities avail in the large fishing vessels market in South East Asia and East Asia, the Group has also through its partners provided mobile satellite terminals with specific applications for voice, SMS and data tracking to fishery authorities in this region for actual trials on some fishing vessels. Pending the satisfactory outcome of the test runs, sizable orders for such terminals are expected to be placed with the Group.

The Group is excited about our prospects and stand ready to exploit them.

 

This press release should be read in conjunction with Addvalue’s results announcement for the fourth financial quarter and full financial year ended 31 March 2011 posted on the Singapore Exchange on 25 May 2011.

 

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