Australian components manufacturer Legend (ASX:LGD) has delivered a 19 percent increase in net profits for the half-year ending 31 December.
The company said the result was driven by cost cutting in the form of reducing inventory and improved margins.
Legend recorded a stable revenue of $43 million for the period and a net profit of $3.2 million, up from $2.7 million.
Earning (after interest, tax, depreciation and amortisation) were $5.7 million coming off $5.5 million in the prior half.
Profits would be used to both pay shareholder dividends and reduce the company's debt, which was reduced from $24.5 million in December 2008 to $12.7 million as at December 2009.
"This is a pleasing result for Legend and it was achieved in a challenging environment," said Legend CEO Bradley Dowe.
"We have delivered significant improvements in margins and operating cash flows, which is a clear indication that we are better managing our cost base and strengthening the performance of our operating divisions," he said.
"A major focus during the half was strengthening our balance sheet by further reducing debt levels," said Dowe.
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