KUALA LUMPUR (May 8): Grand-Flo Solution Bhd net profit for the first quarter ended March 31, 2012 rose 5.91% to RM2.22 million from RM2.09 million a year earlier, due mainly to strong tracking solutions sales abroad
It said on Tuesday that its revenue jumped 19.6% to RM20.37 million from RM17.03 million.
Meanwhile, earnings per share were 1.39 sen compared to 1.44 sen a year ago.
Grand-Flo proposed a final dividend of 1.2 sen per share, comprising a gross dividend of 0.037 sen per share and a tax exempted dividend of 1.163 sen per share for foteh financial year ended Dec 31, 2011.
Grand-Flo said that while the domestic sales remained the main revenue generator with RM16.3 million or 80% contribution to group revenue, its overseas subsidiaries - mainly in Hong Kong and China - saw revenues more than double to RM3.7 million in 1Q12 from RM1.8 million previously.
Tracking solutions revenue improved 17.9% to RM13.1 million from RM11.1 million, and labels segment sales growing 22.8% to RM7.2 million from RM5.9 million last year, it said.
Grand-Flo said that in line its results, it proposed to set a dividend policy to distribute a minimum 20% of its net profit as annual dividends to shareholders effective from the financial year ended Dec 31 2011, subject to shareholders’ approval.
Its group managing director Derrick Tan in a statement said that the establishment of the dividend policy reflected not only its strong performance but, more significantly, its confidence in Grand-Flo’s future as the company implemented expansion strategies to capture the opportunities in the regional tracking solutions space.
“Furthermore, in light of our intended Main Market transfer, we believe that this dividend policy would complement our aim of attracting more retail and institutional investors who are interested in participating in our long-term success story,” Tan said.