On May 19, Frencken Group : E28 +2.61% non-executive non-independent chairman Gooi Soon Chai acquired 200,000 shares of the company at S$1.15 per share. With a consideration of S$230,000, this took his total interest in the integrated technology solutions company from 23.48 per cent to 23.53 per cent.

 

It followed his acquisition of 50,000 shares on Mar 11 at S$1.53 per share. He was appointed the group&rsquo s chairman in August 2016.

 

Also, on May 19, Frencken Group president and executive director Dennis Au acquired 200,000 shares of the company at S$1.16 per share. This took his interest from 0.89 per cent to 0.94 per cent. His preceding acquisitions were between Mar 7 and 8, with 150,000 shares acquired at S$1.52 per share.

 

FRENCKEN Group&rsquo s : E28 +1.53% : E28 +1.53%net profit fell 12.6 per cent year-on-year to S$12.8 million in Q1 due to higher costs and heightened supply chain challenges in the second half of FY2021.

 

&ldquo Higher prices of materials, freight and energy in 1QFY22 compared to 1QFY21 have driven up input costs and the group is working on cost mitigation actions,&rdquo the mainboard-listed company said in a business update on Tuesday (May 17).

 

Revenue went up 9.3 per cent year-on-year to S$198.4 million, driven primarily by double digit sales of the group&rsquo s mechatronics division, which accounted for 87.1 per cent of the manufacturer&rsquo s revenue in Q1.

 

Gross profit eased 2.5 per cent year on year to S$30.5 million in Q1, while gross profit margin fell 1.9 percentage points to 15.4 per cent. Frencken attributed this to rising raw material prices amid supply chain disruptions and increased production overhead costs.

 

Frencken said it expects supply chain pressures to show signs of easing from the second half of this year as it works on mitigating cost inflation through operational initiatives.

 

The group added that it has made &ldquo significant capital investments&rdquo in FY2021 to add capacity and enhance capabilities as well as expand its pool of skilled workers.

 

&ldquo These investments for the future will see increased costs in the interim as the group sets up and qualifies new facilities to grow potential revenue drivers,&rdquo said Frencken.

 

Barring any unforeseen circumstances or deterioration in the business environment, the manufacturer expects a &ldquo moderate increase&rdquo in its revenue for 1H22 as compared to 2H21.