LISTED tile supplier NH Ceramics yesterday reported a 19.5 per cent rise in net earnings to $2.6 million for the year ended June 30.

Turnover rose 0.6 per cent to $33.4 million.

Managing director Ricky Paul Goh said the project business division remained the main contributor to turnover, accounting for about 77 per cent of sales.

The retail business - or direct sales to home-owners and renovation contractors - accounted for the remaining 23 per cent but contributed almost 37 per cent of its $3.8 million pre-tax profit.

The company will concentrate on expanding this because of better margins.

"The retail business is always the premium sector as far as margins are concerned," said Mr Goh.

"So, we are putting a lot of effort into growing the retail business.

"The way we see it, we can undertake a 1,000-unit condominium project this year, but five years down the line we will be looking at 1,000 individual home-owners who will need our products and services.

"So, growing this business segment will be an ongoing process for us."

To better service home-owners, the firm is planning to acquire a new main showroom sometime in the current financial year.

It is budgeting $1 million for the 10,000-20,000 sq ft large showroom.

"For the main showroom, we intend to purchase the premises. Three or four secondary showrooms will also be opened in various parts of Singapore but these can be rented."

The company will also spend more than $5 million on an automated marble tile sorting line which will be operational next year, he said. This will be housed in one of the company's two factories in Tuas.

"FY 2001 will be a difficult year as it reflects the slowdown in the construction industry in the later part of 1998 and early 1999," he said.

"The full impact of the expected increase in both public and private construction demand in 2000/2001 will be felt in FY 2002."

The company said it expected its performance for the current financial year to be "satisfactory".

Earnings per share for the past year rose to 4.84 cents from 4.13 cents previously, while net tangible assets per share increased to 23.8 cents from 19.99 cents previously.

The company has proposed a first and final dividend of 0.6 cent per share.

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(Straits Times)