Hardly a week goes by without having at least one Singapore-listed company release their quarterly results. Some would have disappointed their investors by posting losses or declining profits while others would make their shareholders happy folks by announcing record earnings or much fatter dividends. I’ve no wish to be a spoil-sport, so let’s take a look at three companies that recently declared bigger dividends and likely helped make their shareholders a cheerier bunch of people. Xpress Holdings (SGX: I04) Printing services firm Xpress Holdings, whose products include the printing of financial research reports, annual reports, asset management reports, IPO…
Some would have disappointed their investors by posting losses or declining profits while others would make their shareholders happy folks by announcing record earnings or much fatter dividends.
I’ve no wish to be a spoil-sport, so let’s take a look at three companies that recently declared bigger dividends and likely helped make their shareholders a cheerier bunch of people.
Xpress Holdings (SGX: I04)
Printing services firm Xpress Holdings, whose products include the printing of financial research reports, annual reports, asset management reports, IPO prospectuses, and corporate brochures among others, released its full-year results yesterday night.
It posted a 39% year-on-year decrease in annual sales to S$23.7m. But despite the company’s lower top-line, its bottom-line improved significantly as it brought in S$2.7m in profits compared to a loss of S$4.6m in the previous year.
The net profit margin increase was mainly due to lower provision of doubtful debts of S$0.5m logged in Xpress Holdings’ recently completed fourth quarter as compared to the corresponding figure of S$8.07m recorded in the previous year.
The increase in earnings was accompanied by a bump-up in dividends. Xpress declared a final dividend of 0.03 Singapore cents a share when there were no dividends for the previous financial year.
Management attributed the lower sales’ figure mainly to a “slowdown in financial market activities and… current global economic uncertainties.”
Shares of Xpress Holdings last closed at S$0.04 last Friday, giving its shares a trailing dividend yield of 0.75% based on its declared final dividend.
TTJ Holdings (SGX: K1Q)
TTJ Holdings is “one of the largest structural steel fabricators based in Singapore… and enjoys a reputation as a leading structural steel specialist [here]”.
The company’s recent release of its full-year results for the 12 months ended 31 July 2013 saw revenue of S$127m, 11% lower compared to a year ago. Meanwhile, its profits also slipped by 11% to S$14.9m.
But while shareholders might not be too enthralled with the profit decline, the increase in the company’s dividends might make up for it. TTJ had declared first & final dividends of 0.9 Singapore cents per share, a 12.5% increase over the dividends of 0.8 Singapore cents per share declared a year ago.
The company’s structural steel business segment – its largest segment which made up 88% of its revenue for the financial year ended 31 July 2013 – had suffered a sales decrease of 13.1% year-on-year from S$128.7m to S$111.9m simply because it had completed less work for on-going projects.
Despite the decline in its top-line, TTJ’s still “positive about the construction demand in Singapore.” Public announcements like those released by the Building and Construction Agency earlier this year, which highlighted the expectation for construction demand here to remain strong between S$26b and S$32b for 2013, helped to form TTJ’s optimism.
The company’s shares were trading at S$0.28 last Friday, giving it a trailing dividend yield of 3.2% based on its declared dividend of 0.9 cents.
Singapore Kitchen Equipment (SGX: 5WG)
Industrial and commercial kitchen solution provider Singapore Kitchen Equipment’s latest half-year results for the first half of 2013 saw a 42.5% year-on-year jump in revenue to S$7.8m.
Unfortunately, the company’s bottom-line registered a 73.5% decline to S$0.4m on the back of lower gross margins, absence of one-off gains that happened in the previous year, and expenses related to its Initial Public Offering (Singapore Kitchen Equipment got listed on the Catalist exchange only in July this year).
Management’s encouraged by Singapore Kitchen Equipment’s strong top line growth and “as a sign of confidence” in their own ability to improve profit margins going forward, they have decided to declare an interim dividend of 0.25 Singapore cents.
Since the company’s still in its infancy as a publicly-listed entity, there were no declared dividends in the previous year. But, investors can still look forward to dividend distributions of “not less than 40%” of the company’s income for financial years 2013, 2014, and 2015, in accordance with its dividend policy.
Shares of the kitchen solutions provider were worth S$0.178 each last Friday, carrying a dividend yield of 2.8% based on annualising its half-year pay-out of 0.25 cents.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chong Ser Jing doesn’t own shares in any companies mentioned.