- Net profit of S$6.1 million is the Group’s best performance since FY2014; Net profit to owners tripled to S$3.2 million, reversing from a loss a year ago
- The stellar performance was driven by the Group’s e-waste recycling business and maiden contribution from newly acquired subsidiary, Pastel Glove Sdn Bhd
- Net gearing shrunk nearly 70% from a year ago to 47%
SINGAPORE – Media OutReach – 24 February 2022 – Enviro-Hub Holdings Ltd (SGX: L23) (“Enviro-Hub” or the “Company“, and together with its subsidiaries, the “Group“) has announced its financial results for the year ended 31 December 2021 (“FY2021“)
Earnings Turnaround
The Group recorded an earnings turnaround in FY2021 with a net profit of S$3.2 million, on the back of a 31% rise in revenue and expansion in gross margin from 17.0% in FY2020 to 22.8% in FY2021. The increase in revenue is mainly due to the Group’s recycling business which grew its sales by 55% year-on-year on higher sales volume of trading and precious metal sales, as well as maiden contribution of S$1.6 million from newly acquired subsidiary, Pastel Glove Sdn Bhd (“PGSB“) upon completion in Oct 2021. This is partially negated by lower piling revenue amid COVID-19 pandemic.
Gross Profit increased 77% to S$9.2 million in FY2021 because of a rise in gross profit from recycling business, but partially offset by the lower gross profit recognised from the Group’s piling and property business. General and administrative expenses increased 35% to S$5.0 million due to transaction costs from the acquisition of new subsidiary–PSGB and recognition of PGSB’s general and administrative expenses.
During FY2021, the disposal of the Group’s investment properties helped to strengthen the Group’s balance sheet; Net gearing ratio improved to 47.3%[1] as at 31 December 2021.
Commenting on the results, Executive chairman of Enviro-Hub, Mr Raymond Ng said, “In FY2021, we remained focused on executing our long-term strategy and stepping up growth investments. The evolution of our business segments continued, putting our focus on attractive growth opportunities such as our acquisition of Pastel Glove and further expansion in healthcare segment. We are making good progress in the e-waste segment with our disciplined execution in expanding capacity and clients’ base. We continued to create value for our shareholders through prudent capital allocation and strengthen our investment strategy.”
Evolution of Healthcare Segment
The overall economic environment remains volatile and uncertain as the Covid-19 pandemic persists and we are faced with rising inflation as well as impending higher interest rates. Within this volatile background, the Group has identified the healthcare industry as a viable additional revenue stream business with sustainable growth potential. In this respect, the Group completed the acquisition of the entire stake in glove manufacturing company Pastel Glove Sdn. Bhd. during the year, and plans to expand into the pharmacy business in Malaysia in near future.
In the meantime, under current challenging conditions, the Group will stay prudent and continue to focus on its core businesses, streamline its operating costs and try to improve operating efficiency.
[1] Net gearing ratio calculated as Net Debt/Total equity. Net Debt calculated as Total loans and borrowings- cash & cash equivalents
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The issuer is solely responsible for the content of this announcement.
