INTER-ROLLER Engineering, a provider of airport logistics solutions, posted an 89 per cent year-on-year surge in net profit to $5.54 million for its fourth quarter ended Dec 31, 2005. Revenue for the three months rose 53 per cent to $30.45 million.

The Q4 results brought full-year revenue and profit to a record $101.19 million and $16.92 million respectively. Full-year revenue and profit were $69.86 million and $10 million respectively in the previous year.

New orders in 2005 totalled a record $218.2 million. The company had outstanding orders worth $177.8 million as at Dec 31.

'Airport logistics systems continue to be the mainstay of our business, with approximately 97 per cent of the group's turnover coming from this segment. It remains buoyant with increasing demands from new airports and from the expansion and upgrading of existing airports around the world,' it said.

Overseas projects accounted for 76 per cent of the group's turnover in 2005, compared with 65 per cent in 2004. Some 37 per cent of revenues were derived from the Middle East, 14 per cent from China, 16 per cent other Asean countries, 8 per cent from Latin America and one per cent from Europe.

In 2006, the group expects strong demand for its baggage handling systems as new airports are built and as existing airports are refurbished and upgraded. 'The need to integrate new security systems adds to this demand,' it said.

However, earnings per share increased only about 11 per cent, from 9.4 cents per share in 2004 to 10.4 cents per share in 2005, as share capital was enlarged after a rights issue, a bonus issue and the exercise of outstanding share options.

'The increase in share capital led to a stronger balance sheet that would pre-qualify us for larger contracts. In addition, the increased number of shares might have contributed to the improved trading liquidity of our shares,' Inter-Roller said.

Inter-Roller's directors have proposed a final one-tier tax exempt dividend of five cents per share.

《The Business Times》