3 Things Investors Should Know About Venture Corporation Ltd’s Latest 2016 Results

Venture Corporation Ltd (SGX: V03) is an electronics manufacturing services provider. It has its fingers in a range of activities, such as printing & imaging; networking & communications; retail store solutions, and more.

In late February, Venture released its 2016 full year results. Let’s look at three useful pieces of information from the announcement:

1. The overall result

Here’s a table showing some of the important numbers from Venture’s income statement for 2015 and 2016:

Venture income statement 2016
Source: Venture 2016 full year earnings release

In all, Venture saw growth in 2016 when compared to 2015. Revenue was up by 8.2% while profit attributable to shareholders grew by 17.3%.

The company’s growth in revenue was driven mainly by new products and programme introductions by customers. New customers that Venture has won in recent years also contributed to the higher revenue.

Meanwhile, the strong bottom-line was the result of “revenue growth, value creation, as well as improvements in operational excellence across [Venture’s] facilities and its entire value-chain.”

2. Detailed segmental performance

The following’s a table showing the performance of each of Venture’s business segments:

Venture segmental income statement 2016
Source: Venture 2016 full year earnings release

We can see that the Retail Store Solution & Industrial segment was the only one that turned in lower revenue and segmental profit in 2016.

The company’s largest segment, Electronic Services Provider, was also the biggest contributor toward Venture’s overall revenue and profit growth in 2016.

3. Outlook for 2017

As investors, we rely on many tools, including management’s forecasts, to help us gain insight on what to expect for the near to long term performance of our investments’ businesses.

With regard to Venture, this is what the company said about its future in its earnings release:

“The industry continues to undergo rapid change and transformation in a dynamic, highly competitive and globalised world.

In the midst of all these, the Group remains steadfast in strengthening its Clusters of Excellence and deepening its partnerships for value creation with leaders in technology domains of interests.

Venture will continue to augment its solid customer base, forging new complementary and collaborative alliances through its well-regarded engineering and manufacturing capabilities.

Venture’s entrepreneurial spirit coupled with its set of core values will continue to provide unparalleled dedication and energy to render strong support to all its business partners and clients.

Venture will also continue to invest in growing its core groups of management, technical and professional talents to realise its mission to be a leading global provider of technology services, products and solutions.”

In sum, Venture expects its market to remain competitive and be susceptible to rapid changes. But, it’s also aiming to deliver a good performance via good management and execution.

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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 Lawrence Nga doesn’t own shares in any companies mentioned.