DESPITE posting a net loss for 2002, Inter-Roller Engineering will pay shareholders the same rate of dividend as the previous year when it made a profit.

The 6 per cent payout - which works out to a yield of 5.3 per cent based on yesterday's closing price of 22.5 cents - will come from retained profits.

Company chairman Lim Yong Wah said yesterday: 'We felt that as we expect to do well this year, we have available past profits and our loss last year was very minimal, we ought to reward our many long-time shareholders.'

The cargo-handling systems developer made a net loss of $238,000 for the year ended Dec 31, 2002, against a net profit of $999,000 a year earlier.

Loss per share came to 0.34 of a cent, against earnings per share of 1.4 cents a year earlier. Net asset value per share slipped to 38 cents from 40 cents.

The company had $1.9 million cash at end-2002.

Turnover fell 45 per cent to $19.1 million, because of a low order book at the beginning of the year and low executed orders over the year despite significant jobs secured in the second half.

Founder and chief executive officer Yap Lem said yesterday that Inter-Roller was confident it would be back in the black in 2003.

He said turnover could easily double from 2002 based on sizeable airport baggage-handling projects the company has on hand.

In 2002, the Sesdaq-listed company secured $126.4 million of orders - the highest amount in its 22-year history. In 2001, orders totalled less than $20 million.

The latest orders - many of which are for around three years - include the supply of baggage-handling systems and solutions at Changi Airport's upcoming Terminal 3 and Bangkok's new Suvarnabhumi Airport.

Inter-Roller has also been chosen by the Civil Aviation Authority of Singapore to redevelop and upgrade the baggage systems at Changi Airport's terminals 1 and 2.

Mr Lim said yesterday that Inter-Roller was seeking projects at airports in other countries, especially new markets in Europe and the Middle East, and in China, where the company has had a presence for many years.

He said the company has no local competitors in its airport-related business, which comprised over 80 per cent of FY02 turnover. Its main competitors are foreign firms.

'I think we have an advantage over them, not just in terms of our design and manufacturing capabilities but also in terms of costs,' Mr Lim said.

Inter-Roller operates out of Singapore and Malaysia and employs 287 people.

《The Business Times》