EXPECTING positive prospects in the months ahead, MFS Technology said it will recommend a one-cent special cash dividend on top of a 0.55-cent final pay-out as fourth-quarter net profit almost doubled to $13.6 million.

MFS, which specialises in making printed circuit components, said its flexible printed circuit (FPC) division continued to be the key growth driver, driving sales up 35 per cent year-on-year to $120.5 million for the three months ended Sept 30. Net profit for the quarter rose 90 per cent, bringing full-year net earnings up 87 per cent to $43.1 million. FPC sales grew 57.4 per cent in FY2004 as volume production started on numerous colour-LCD products and mobile handsets, MFS said. Growth in the printed circuit board division was slower at 18.6 per cent amid uncertainties and slowdowns in most market segments.

The telecommunication sector contributed 79.3 per cent of total turnover, with data storage products adding another 10.7 per cent. The energy, automotive, industrial equipment, network infrastructure and PC peripherals segments contributed the rest.

MFS continues to focus on the FPC segment, which it expects to continue being the main growth sector. New facilities in China will start contributing in the FY2005 period with expectations of adding up to 50 per cent of existing capacity over two years.

Based on the current status of its outstanding orders and the number of new product models in the pipeline, MFS said prospects for the half-year ending March 31, 2005, will 'continue to be positive'.

The company, which only paid a 0.25-cent per share final dividend last year, is now proposing a 0.55-cent per share tax-exempt final dividend. In addition, it is recommending a one-cent per share tax-exempt special dividend.