"In terms of dividend yield, the Company has delivered dividend yields ranging from 5.0% to 20.5% during the last five years, calculated based on the closing share price on the date of announcement of the respective full year results. Maximising long-term shareholders’ value has been one of our key objectives and we will continue to work hard to generate positive returns for the shareholders."
 
 

On behalf of the Board of Directors, I am pleased to present to you the Group’s annual report for the financial year ended 31 July 2008 ("FY2008").

The operating environment during FY2008 remained challenging due to keen competition and high raw material costs. Despite the tough operating conditions, I am delighted to report that the efforts put in by the management over the last few years, which included expanding the customer base in the region, providing more value added services to customers and keeping a close tab on operating costs, had continued to generate good results. For FY2008, the Group reported higher revenue and a profit of $13.5 million attributable to the shareholders.

Performance Review

For FY2008, the Group’s revenue rose by 4.6% to $73.3 million from $70.1 million. The higher revenue was attributed to improved demand and new product launches by customers during the first quarter of FY2008.

Total operating expenses for the Group increased by 6.5% to $59.5 million from $55.9 million. The increase in cost of raw material usage was attributed to higher material costs and higher sales. Staff costs, depreciation and other operating expenses were relatively stable during the year. Accordingly, the Group’s net profit declined from $15.0 million to $13.3 million, a reduction of 11.2%.

The financial position of the Group remained strong with a net cash position of $43.3 million as at 31 July 2008. The Group continued to generate positive operating cashflows amounting to $20.3 million during FY2008.

Earnings per ordinary share for FY2008 and FY2007 were 2.25 cents and 2.49 cents, respectively. The Group’s net asset value per ordinary share stood at 12.92 cents as at 31 July 2008 compared to 12.82 cents as at 31 July 2007, an increase of 0.8% after the payment of dividends amounting to $12.0 million on 12 December 2007 for FY2007.

Proposed Dividends

Earnings per ordinary share for FY2008 and FY2007 were 2.25 cents and 2.49 cents, respectively. The Group’s net asset value per ordinary share stood at 12.92 cents as at 31 July 2008 compared to 12.82 cents as at 31 July 2007, an increase of 0.8% after the payment of dividends amounting to $12.0 million on 12 December 2007 for FY2007.

The Group’s dividend policy is to set aside at least 50% of the Group’s profit for the payment of annual dividend, subject to capital and business requirements of the Group.

The proposed dividend of two cents per share for FY2008 represents a dividend payout of 88.3% and a dividend yield of 12.5%, calculated based on the closing share price on the date of announcement of FY2008 results.

The proposed dividend is subject to the approval of the members at the Annual General Meeting to be held on 28 November 2008. If approved, the dividend will be paid on 19 December 2008.

 

 

Shareholder's Value

I would like to share with the shareholders on the performance of the Company in the creation of shareholders’ value since the Company was listed on the Singapore Exchange Securities Trading Limited on 1 March 1994.

For those shareholders who have invested in the Company since listing, a total return of approximately 3.9% per annum, calculated based on the share price of $0.16, has been generated. For those who have invested in the Company for the last three years, the total return would have been higher at 6.9% due to higher dividends declared in recent years.

In terms of dividend yield, the Company has delivered dividend yields ranging from 5.0% to 20.5% during the last five years, calculated based on the closing share price on the date of announcement of the respective full year results.

Maximising long-term shareholders’ value has been one of our key objectives and we will continue to work hard to generate positive returns for the shareholders.

Outlook And Strategies

The subprime crisis in the United States and the ensuing ramifications are expected to have an adverse implication on global economic growth. With continued keen competition and high raw material costs, the Group expects its operating environment to remain challenging.

With a strong balance sheet, experienced management team and close relationships with customers, the Group is well positioned to ride through this challenging period and strengthen its position in the media storage industry. It will continue to focus on expanding its customer base and providing more value-added services to its customers. The Group will also keep a close tab on the technological developments within the media storage industry, in particular new media storage technology used in content distribution such as Blu Ray.

The Group will also actively re-define its strategies and operating processes, and deploy its resources to effectively keep tab with the changes in its operating environment.

A Word of Thanks

On behalf of the Board of Directors, I would like to take this opportunity to commend our management and staff for their unabated dedication, hardwork and contribution over the years. I would also like to express our deepest appreciation to our customers, vendors, business partners and associates, as well as government agencies for their valued support. To the shareholders, I would like to thank them for the confidence they have in us.

For all of us at Datapulse, it has been a task to operate under an increasingly challenging operating environment to bring us to where we are today, and we look forward to having every stakeholder continuing to work with us to propel the Group forward.

Ng Khim Guan @ Ngadimin Chairman
 
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