11-11-2011, 08:08 AM
It's easy to "double" earnings when you start from a very low base!
The Straits Times
Nov 11, 2011
mDR profit more than doubles to $1.6m
By Robin Chan
Mobile phone distributor mDR reported a 112 per cent surge in net profit to $1.6 million in the third quarter from a year earlier.
This was the eighth consecutive quarter of profit for the company, formerly known as Accord Customer Care Solution.
Its revenue grew 8 per cent to $83 million, in the three months to Sept 30, mainly due to its distribution and prepaid card business.
For the first nine months to September, net profit was 80 per cent higher at $5.7 million and revenue grew 21 per cent to $262 million.
The company's fortunes have been revived since the appointment in 2005 of new chairman Philip Eng, the former managing director of Cycle & Carriage, and a slate of new management hires.
Its business and reputation had been badly burnt after its former management was found to have grossly overstated its revenue and earnings. Some of them were thrown into jail after investigations.
In an interview with The Straits Times yesterday, Mr Eng said: 'In the last eight quarters we have managed to turn the company around. We have basically repaid all our lenders without a haircut. And I would say we are one of the very few companies that got themselves into trouble and have been able to bounce back.'
Since 2005 the firm has undergone a major restructuring, closed down its overseas operations, and raised funds to pay off its lenders to put it back on a stable footing.
From owing about $55 million to its bankers, the company is now sitting on $18 million in cash with no borrowings, Mr Eng said.
It did two rights issues in 2006 and September 2011 and fully repaid its borrowings at the end of September.
After scaling down, the company currently employs 350 staff across its retail stores and after-market repair services, and operates 62 retail stores.
'Today marks a new journey for us. We are out of the shackles of our lenders. It gives us an opportunity to get to another level,' Mr Eng said.
The firm's share price closed unchanged at 0.4 cent.
The Straits Times
Nov 11, 2011
mDR profit more than doubles to $1.6m
By Robin Chan
Mobile phone distributor mDR reported a 112 per cent surge in net profit to $1.6 million in the third quarter from a year earlier.
This was the eighth consecutive quarter of profit for the company, formerly known as Accord Customer Care Solution.
Its revenue grew 8 per cent to $83 million, in the three months to Sept 30, mainly due to its distribution and prepaid card business.
For the first nine months to September, net profit was 80 per cent higher at $5.7 million and revenue grew 21 per cent to $262 million.
The company's fortunes have been revived since the appointment in 2005 of new chairman Philip Eng, the former managing director of Cycle & Carriage, and a slate of new management hires.
Its business and reputation had been badly burnt after its former management was found to have grossly overstated its revenue and earnings. Some of them were thrown into jail after investigations.
In an interview with The Straits Times yesterday, Mr Eng said: 'In the last eight quarters we have managed to turn the company around. We have basically repaid all our lenders without a haircut. And I would say we are one of the very few companies that got themselves into trouble and have been able to bounce back.'
Since 2005 the firm has undergone a major restructuring, closed down its overseas operations, and raised funds to pay off its lenders to put it back on a stable footing.
From owing about $55 million to its bankers, the company is now sitting on $18 million in cash with no borrowings, Mr Eng said.
It did two rights issues in 2006 and September 2011 and fully repaid its borrowings at the end of September.
After scaling down, the company currently employs 350 staff across its retail stores and after-market repair services, and operates 62 retail stores.
'Today marks a new journey for us. We are out of the shackles of our lenders. It gives us an opportunity to get to another level,' Mr Eng said.
The firm's share price closed unchanged at 0.4 cent.