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Profits Jump Big at Jason Marine: Highlights for Latest Full-Year Earnings

Jason Marine Group (SGX: 5PF) operates in a niche market within the shipping industry. It is a supplier and system integrator for marine communication, navigation and automation systems.

The company had faced a tough time in its financial year ended 31 March 2013 (FY2013) with profits of only S$416,000 on the back of S$38 million in revenue. That’s in the past now though as the company has bounced back in FY2014. Jason Marine ended the year with S$2.8 million in profit, some 577% higher than a year ago.

Results for the year

The company has three business segments: 1) The sale of marine communication, navigation and automation systems; 2) providing maintenance and support services for those systems; and 3) resale of airtime services..

For FY2014, Jason Marine’s revenue came in at S$50.2 million, some 32% higher compared to FY2013. That level of revenue is also a new record for the company.

Although the company saw improvement in all of its business segments, it was the first segment that was the main contributor to the company’s strong growth. At last count, the segment accounts for 76% of Jason Marine’s total revenue and 63.6% of operating profits.

All told, Jason Marine’s 577% spike in profits came on the back of better control of its operating expenses, which grew at a much slower pace as compared to the top-line.

The company continues to have a strong balance sheet, ending the year with net cash (total cash minus total debt) of more than S$17 million. Given that the company only has a market capitalisation of around S$26 million, it’s worthwhile to note that the net cash position alone takes up 65% of the company’s value.

Foolish Summary

In view of the strong performance for the year, Jason Marine proposed a dividend of S$0.002 per share and a special dividend of S$0.008, bringing the annual dividend to S$0.01. With the company’s closing share price of S$0.25 today, that translates to a historical dividend yield of 4%.

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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.