Serial System fighting on

Serial System announced its results in the wee hours of 23 Feb.

- turnover at S$770.3 million in FY2011, an increase of about 3% when compared with the figure for FY2010.

- gross profit margin at 9.0% in FY2011 as compared to 9.3% in FY2010 due to a more challenging environment in FY2011.

Detailed breakdown given in its results announcement on higher Distribution expenses (increased by about S$6.3 million or 22%) and Administrative expenses (increased by about S$2.5 million or 35%).

- its current ratio is healthy but two key items need serious and urgent attention - Inventory and Trade Receivable

Inventory
- Inventories increased by about S$11.4 million when compared to 31 December 2010 due to higher amounts of inventories held by its subsidiaries for certain product lines in anticipation of higher sales volume for the first quarter of 2012.

- Allowances for inventory obsolescences recorded in the profit and loss of about S$1.6 million (FY2010: Nil)


Trade Receivable
- Trade and other receivables increased by about S$44.5 million when compared to 31 December 2010 due to higher sales and longer average credit period granted to customers. Trade receivable average turnover days increased from 38 days in FY2010 to 55 days in FY2011.

- Finance expenses recorded in the profit and loss increased by about S$1.2 million or 55% mainly due to higher utilisation of trade facilities in line with higher sales for the Group and increased working capital requirement arising from longer average credit period for trade receivables as compared with FY2010.

Dividend

year 2011 $0.33 cents versus year 2010 $0.67 cents


Remarks
I have sold 19 lots on 22 Feb with estimated nett gain of $86.  If kept for dividend, it would have been at $63 and expected payment date is 14 May.