In its recently-announced FY2019 full-year results, Catalist-listed Accrelist made a remarkable 49-percent jump in turnover from $112.5 million in FY18 to $167.1 million in FY19. The higher turnover was mainly due to full consolidation of Jubilee’s results in FY19.
Apart from higher contributions from its Electronics Business Unit (EBU) – a distributor of electronics components such as memory chips – the Mechanical Business Unit (MBU) also chalked up higher sales owing to the acquisition of plastics injection specialist HonFoong Plastics Industries.
Jubilee Industries Holdings is the crown jewel of Accrelist, which owns a roughly 65-percent stake in the electronics manufacturing services (EMS) provider.
Making its first foray into medical aesthetics, Accrelist also saw maiden contributions from A.M Aesthetics (Accrelist Medical Aesthetics), formerly known as the Refresh Laser Clinic chain.
From a mere four outlets, A.M Aesthetics now operates five outlets in Singapore (source: amaesthetics.com.sg) and has plans to operate additional outlets overseas.
As a group, gross profit for FY19 increased to $15.6 million compared to FY18’s $4.7 million. Meanwhile, operating expenses rose from $10.8 million in FY18 to $17.2 million in FY19 while marketing and distribution expenses increased by $0.6 million from $1.0 million in FY18 to $1.6 million in FY19. Administration expenses increased by $5.1 million from $8.9 million in FY18 to $14.0 million in FY19. This is due to staff cost incurred with Jubilee being a subsidiary of Accrelist.
On a pre-tax level, Accrelist turned in a profit of $1.2 million in FY19 compared to losses a year ago. EBITDA experienced a 50-percent jump from $2.8 million in FY18 to $4.2 million in FY19.
Going forward, investors can expect Accrelist to continue deriving the bulk of its revenue and profit from Jubilee Industries Holdings. Barring unforeseen circumstances with regards to the trade war, which has hurt business sentiment and demand for tech products, Jubilee is likely to stay profitable. This is the second consecutive year that the management of this EMS player has stayed profitable, and registered strong jump in profit, after being mired in losses under the previous management.
Accrelist has set up Accrelist A.I. Tech primarily to be engaged in facial differentiation management system using facial recognition as the core AI technology for business entities, resulting in greater convenience and data support to customers.
A.I. Tech is a systems integrator for implementing facial recognition verification services by working with top AI engineers and hardware factories that enable the system to reach a high accuracy rate.