Innotek 3q09 Net Profit Rises To S$954,000_101109

InnoTek Limited (Formerly known as Magnecomp International Limited) 1 Finlayson Green, #15-02, Singapore 049246. Tel: (65) 6535 0689 Fax: (65) 6533 2680 Reg. No. 199508431Z

2680

InnoTek’s 3Q’09 Net Profit Rises To S$954,000; 9M’09 Profit Up 57% To S$4.6 Million


Despite lower turnover, Group’s bottom-line improved on internal cost efficiencies and lower material costs; subsidiary Mansfield Manufacturing Company Limited (“MSF”) reverses from losses to post profit of S$2.3 million




Group 9M’09 net profit rises to S$4.6 million from S$2.9 million in 9M’08




Group remains in healthy financial position with positive operating cash flow and a net cash position of approximately S$52.3 million




In absence of further weakening of business conditions or a further weakening of US$, the Group expects to return to profitability in FY2009 after net loss of S$7.0 million in FY2008, and will continue to explore M&A opportunities S$ Mil

3Q’09

3Q’08

Change

Change %

MSF Turnover

92.0

108.1

(16.1)

(14.9)

MSF Profit/ (Loss) Corporate Group Net Profit Basic EPS (cent)

2.3 (1.4) 1.0 0.41

(1.2) 1.3* 0.2 0.07

3.5 (2.7) 0.8 0.34

NM NM 496 486

* Include reversal of provision for warranties amounting to S$0.8 million, equivalent to 0.34 cent per share NM Not meaningful MSF Mansfield Manufacturing Company Limited & its subsidiaries

SINGAPORE, 10 November 2009 – Mainboard Listed InnoTek Limited (“InnoTek” or “the Group”) announced today that its net profit after tax for the quarter ended 30 September 2009 (“3Q’09”) rose to S$954,000 from S$160,000 a year earlier on continued cost and operational improvements despite lower revenue due to the global economic slowdown.

Media Release – InnoTek’s 3Q’09 Net Profit Rises to S$954,000 10 November 2009 Page 2 of 3 ________________________________________________________________________

The higher profit was achieved despite weaker stamping components and assembly sales which lowered revenue recorded by its wholly owned precision metal components business, Mansfield Manufacturing Company Limited (“MSF”), to S$92.0 million from S$108.1 million. MSF posted a net profit of S$2.3 million in 3Q’09, reversing a loss of S$1.2 million, over the comparative period. MSF recorded reduced sales of lower-margin TV parts with higher-cost materials, which resulted in improved 3Q’09 profit margin as compared to 3Q’08. The lower sales of such TV parts were mitigated by an increase in sales of higher-margin automotive and medical-related products which contributed to an increase in profit margin of MSF in 3Q’09. The net profit growth of MSF was offset by a loss of S$1.4 million recorded by the Company in 3Q’09 (compared to a net profit of S$1.3 million in 3Q’08) due mainly to foreign exchange loss of S$1.1 million compared to a foreign exchange gain of S$1.1 million over the comparative period. The Company’s corporate gain in 3Q’08 had included a reversal of provision for warranties amounting to S$0.8 million. For the nine months ended 30 September 2009 (“9M’09”) InnoTek reported a net profit attributable to shareholders of S$4.6 million, up 57% from S$2.9 million. 9M’09 revenue declined to S$268.7 million from S$310.0 million over the comparative period due to lower global demand for flat-panel TVs and printing equipment which affected the stamping, assembly and frame businesses. The Group recorded an earnings per share (fully diluted) of 0.41 cent for 3Q’09, up from 0.07 cent in 3Q’08; and EPS of 1.96 cents for 9M’09, up from 1.25 cents in 9M’08. The Group remains in a healthy financial position, having generated S$10.1 million of positive operating cash flow in 3Q’09. As at 30 September 2009, the Group had a cash balance of approximately S$98.6 million with total borrowings of S$46.3 million, amounting to a net cash position of S$52.3 million. Commenting on the 4Q’09 outlook, the Group said that while there have been signs of stabilization of global economy, business outlook for the next 12 months remains uncertain. The Group will continue to improve operational efficiencies and cost management. “In the absence of any further deterioration of business conditions and major weakening of the US$, the Group will record a profit for 4Q’09 and FY2009,” management commented.

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Media Release – InnoTek’s 3Q’09 Net Profit Rises to S$954,000 10 November 2009 Page 3 of 3 ________________________________________________________________________

The Group will continue to explore merger and acquisition opportunities with caution, focusing on earnings-accretive businesses and will stringently evaluate feasible investment opportunities. ~ End ~ About InnoTek Limited Singapore Exchange MainBoard-listed, InnoTek Limited (together with its subsidiaries “the Group”) is a precision metal components manufacturer, serving the consumer electronics, office automation and automotive industries. With over 10 manufacturing facilities across China and Europe, the Group’s wholly owned subsidiary, Mansfield Manufacturing Company Limited (“MSF”), provides precision metal stamping, commercial tool and die fabrications, sub-assembly work and frame manufacturing services to a strong and diversified base of Japanese and European end-customers. For more information, visit: www.innotek.com.sg InnoTek Limited contact: InnoTek Ltd 1 Finlayson Green, #15-02, Singapore 049246 Tel: (65) 6535 0689, Fax: (65) 6533 2680 Linda Sim, [email protected] Yong Kok Hoon, [email protected] Investor relations contact: WeR1 Consultants Pte Ltd 29 Scotts Road Singapore 228224 Tel: (65) 6737 4844, Fax: (65) 6737 4944 Lai Kwok Kin, [email protected]

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