Venture Corporation Ltd: 3 Positive Things Investors Should Know From Its Latest Earnings
Venture Corporation Ltd (SGX: V03) is an electronics manufacturing services provider. It has its fingers in a range of activities, such as printing & imaging; networking & communications; retail store solutions, and more.
Earlier this month, the company reported its 2017 second quarter earnings. There are some good aspects of the company’s business from the latest announcement that investors may want to know about:
1. Strong growth seen
Venture delivered strong growth during the reporting quarter, both in terms of revenue and profit. See below:
Source: Venture Corporation 2017 second quarter earnings press release
The company said that its growth was driven by its “diversified customer base and continuing strong execution of customers’ programmes launched in prior quarters.”
2. Margin expansion exprerienced
Cost management is an important aspect of a company’s business performance. An effective cost management system allows a company to become more efficient over time, resulting in higher margins and profitability.
In the second quarter of 2017, Venture managed to grow its profit before tax margin from 7.6% a year ago to 8.3%. The company attributed its better margin to its “ability to crate and capture value through strong R&D initiatives/programmes as well as sustained operational excellence across the value-chain contributed to the improvement in profitability.”
3. A robust balance sheet
As of 30 June 2017, Venture has S$441.7 million in cash and bank balances, and S$75.2 million bank loans. This puts the company in a net cash position, one that is relatively rare in the investment world, and that’s a strong balance sheet.