Analabs

Analabs just announced its earnings 2007 Q4 earnings tonight. Quarterly rpt on consolidated results for the financial period ended 30/4/2007

1. Q4 earnings on a y-y basis was ok but poor on a q-q basis.

2. Poor track record since fy 2002 but the company has performed pretty well this year.

3. This was what the company said in its notes.

• The Group’s turnover for the year ended 30 April 2007 at RM35.403 million was higher compared to RM34.141 million for the corresponding period in the preceding year, representing an increase of 4%. The major contribution of the revenue was derived from formulation and repackaging of chemicals segment and recovery and sales of recycled products.
  
  Profit before taxation increased by RM4.447 million or 101% mainly due to increase in contributions from formulation and repackaging of chemicals segment, recovery and sales of recycled products segment, and gain on disposal of quoted investments for the year ended 30 April 2007.
  
  The decrease in revenue for the current quarter as compared to the preceding quarter was mainly due to decrease in revenue contribution from formulation and repackaging of chemicals segment and aqua-culture divisions.
  
  Profit before tax of RM1.075 million was higher than the loss before tax of RM0.453 million for the corresponding period in the preceding year mainly due to the gain on disposal of quoted investment in the equity market for the current quarter as compared to the preceding corresponding quarter which included an allowance for diminution in value for OTT investment in South Africa.

4. Company dabbles in the share market. The current fiscal profit of 8.325 mil is boosted by disposal of securities, which saw Analabs gaining 1.837 mil from its disposal of shares this fiscal year. Some folks hate such share dabbling!

Currently, as stated in the earnings notes, "The investment of RM5.096 million in the condensed consolidated Balance Sheet for the current quarter has been reclassified as non-current assets". The market value of these shares is now worth rm6.094 million.

5. Cash balance is extremely healthy, so is the cash flow. Net cash is now 35.197 mil.

6. Dividends.

Decent improvement in payout since fy 2005 but pale in comparison since fy 2002.

Now company has tons of cash, hence it is argued that it should have done much better in sharing its wealth back with its shareholders.