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Highlights from Gaylin Holdings’ Latest Full-Year Results

Gaylin Holdings (SGX: RF7) is one of Singapore’s largest providers of rigging and lifting solutions for the oil and gas sector. It supplies many types of slings, fibre and rope products in addition to providing services such as testing & inspection, and rental of equipment.

With its announcement of its full-year results on Friday, let’s see how the company fared.

Full Year Results

Gaylin Holdings achieved a sharp 25% increase in annual revenue to S$96.3 million.  The increase was due primarily to two reasons: 1) the acquisition of Allseas Marine Service and Phoenix Offshore, which is in the ship chandling business (i.e. a specialty merchant for ship supplies); and 2) an S$8.3 million improvement in revenue in its rigging and lifting business.

Gross margin at the firm increased at a slower pace of 15.5% to S$28.7 million, mainly due to the sale of more lower-margin products. Meanwhile, Gaylin’s distribution and administrative costs had increased by more than 20% as the company grew its headcount to handle the expansion in its business.

All in all, Gaylin ended the year with a net profit to shareholders of S$11.6 million, which is 11% higher than the previous year. Nonetheless, the company’s earnings per share had decreased from 2.95 cents to 2.69 cents despite the higher profit. This is because of the dilutive effect of a huge increase in share count that came about from its IPO last year which saw its weighted average share count increase from 355.6 million to 432 million.

The company’s balance sheet had weakened compared to last year; its net debt to equity ratio had increased from 36% to 49%.

Foolish Summary

Gaylin announced a first and final dividend of S$0.009, which is S$0.001 more than the previous year. The company ended Friday’s trade at S$0.575 per share. Based on its latest financials, the company is trading at a price to earnings ratio of 21.4 times.

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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 Stanley Lim doesn’t own shares in any companies mentioned.