KUALA LUMPUR: Athletics apparel manufacturer PCCS Group Bhd has adopted a dividend policy under which the company intends to pay 30% of its profit after tax.
PCCS has announced a special dividend of 6 sen for its financial year ended March 31, 2023 (FY23) as a way to reward shareholders following the disposal of its labelling business.
“PCCS has also set out a dividend policy where it will pay 30% of its profit after tax in respect of the financial year, moving forward,” it said in a statement.
The group’s net profit jumped over 10-fold to RM17.19mil in the first quarter to June 30 from RM1.62mil a year ago.
Its profit was partially contributed by the gain on disposal of subsidiaries, Mega Label (Malaysia) Sdn Bhd (MLM) and Mega Label (Penang) Sdn Bhd (MLP) amounting to RM8.3mil.
Revenue for the quarter surged to RM169.3mil against RM99.5mil a year ago while earnings per share rose to 8.00 sen from 0.76 sen last year.
The higher revenue was mainly due to its Cambodian apparel orders strongly coming back following the reopening of businesses.
The company is set to fulfil some RM400mil of apparel orders for its financial year ending March 31, 2023 (FY23).
It has cash in the bank of RM42.37mil and short-term funds of RM26.87mil. Borrowings stood at RM38.34mil, but this is strongly supported by inventories of RM56.61mil and receivables of RM83.29mil.
“The worst is now behind us. We are conservatively upbeat on our prospects moving ahead with Covid restrictions being lifted around the world. As marathons, soccer matches and triathlons around the world further reopens, our athletic apparel segment will gain momentum,” said PCCS managing director David Chan Wee Kiang.
“Moving forward, our profitability will continue to be anchored by our apparel segment. Our focus is to move up the value chain and focus on developing high-tech athlete wear, which also commands better margins,” he added.