First Quarter Financial Statement And Dividend Announcement
Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.
|Cost of sales||(19,336)||(18,235)||6|
|Other (loss)/gains - net||(1,241)||21||NM|
|- Other operating||(5,587)||(5,663)||(1)|
|Share of profit of associated companies||207||7||NM|
|Share of loss of a joint venture||(2)||(5)||(60)|
|Profit/(Loss) before income tax||1,476||(1,364)||NM|
|Income tax expense||(310)||(215)||44|
|Other comprehensive income/(loss):|
|Items that may be subsequently reclassified to profit or loss:|
|Currency translation differences arising from consolidation|
|Fair value gains/(losses) on cash flow hedges||(1)||8||NM|
|Total comprehensive (loss)/income||1,003||(1,039)||NM|
|(Loss)/Profit attributable to:|
|Equity holders of the Company||1,176)||(1,437)||NM|
|Total comprehensive (loss)/income attributable to:|
|Equity holders of the Company||1,024||(917)||NM|
|Denotes: NM - not meaningful|
Note to the Statement of Comprehensive Income
|Profit/(Loss) after income tax was stated after crediting/(charging)/:|
|Depreciation of property, plant and equipment||(7,465)||(7,723)||(3)|
|Currency exchange loss - net||(1,268)||(426)||198|
|Gain on disposal of property, plant and equipment||107||395||(73)|
|Fair value (loss) / gain on financial assets at fair value through profit or loss||(77)||57||NM|
|Impairment written back on trade receivables||47||43||9|
|Over provision in prior years' deferred tax||-||4||(100)|
|Denotes: NM - not meaningful|
|Cash and cash equivalents||9,158||8,502|
|Financial assets at fair value through profit or loss||410||488|
|Trade and other receivables||49,537||42,937|
|Other current assets||2,300||1,199|
|Derivative financial instruments||1||2|
|Investment in associated companies||2,885||2,676|
|Investment in a joint venture||2,064||2,060|
|Investment in subsidiaries||-||-|
|Property, plant and equipment||353,785||353,239|
|Deferred income tax assets||536||578|
|Trade and other payables||31,738||29,030|
|Current income tax liabilities||1,050||1,075|
|Deferred income tax liabilities||26,710||26,538|
|Capital and reserves attributable to|
|equity holders of the Company|
Review on Group's Financial Results
3 Months ended 30 September 2018 (1QFY2019) vs 3 Months ended 30 September 2017 (1QFY2018)
|Heavy Lift and Haulage||27,442||22,794||20|
Revenue was S$28.5 million in 1QFY2019, an increase of S$5.0 million or 21% from S$23.5 million in 1QFY2018. The increase was mainly attributable to the increase in contribution from Heavy Lift and Haulage segment.
Heavy Lift and Haulage segment revenue increased by S$4.6 million or 20% from S$22.8 million in 1QFY2018 to S$27.4 million in 1QFY2019, mainly due to more projects executed in Singapore and Brunei.
Marine Transportation segment revenue increased by S$0.6 million or 167% from S$0.4 million in 1QFY2018 to S$1.0 million in 1QFY2019, mainly due to more chartering jobs secured in Malaysia.
Engineering Services segment revenue decreased by S$0.2 million or 100% from S$0.2 million in 1QFY2018 to S$Nil in 1QFY2019, due to the completion of the engineering project in the Middle East and the disposal of an engineering services subsidiary in FY2018.
Trading segment revenue remained low at below S$0.1 million for both 1QFY2019 and 1QFY2018 as there was no equipment sold during these quarters.
Gross Profit was S$9.1 million in 1QFY2019, an increase of S$3.8 million or 74% from S$5.3 million in 1QFY2018. Gross Profit Margin was higher at 32% in 1QFY2019 as compared to 22% in 1QFY2018. The increase in gross profit was mainly due to higher turnover from the Heavy Lift and Haulage segment and improved performance from the Marine Transportation segment.
Other (Losses)/Gains - net recorded a loss of S$1.2 million in 1QFY2019 as compared to a gain of S$0.02 million in 1QFY2018. This was mainly attributable to operational exchange loss of S$1.3 million which was offset by gain on disposal of property, plant and equipment of S$0.1 million in 1QFY2019, as compared to gain on disposal of property, plant and equipment of S$0.4 million which was offset by operational exchange loss of S$0.4 million in 1QFY2018.
Share of Profit of Associated Companies was S$0.2 million in 1QFY2019 as compared to S$0.01 million in 1QFY2018, mainly due to improved performance by the associated companies in 1QFY2019.
|Profit/(Loss) before Income Tax||1QFY2019
|Heavy Lift and Haulage||1,797||(455)||NM|
Profit before Income Tax was S$1.5 million in 1QFY2019 as compared to a loss before income tax of S$1.4 million in 1QFY2018.
Heavy Lift and Haulage segment recorded a profit before income tax of S$1.8 million in 1QFY2019 as compared to a loss before income tax of S$0.5 million in 1QFY2018, mainly due to higher turnover in 1QFY2019.
Marine Transportation segment incurred a loss before income tax of S$0.3 million in 1QFY2019. The loss was reduced by S$0.2 million or 35%, from S$0.5 million in 1QFY2018, mainly due to higher turnover in 1QFY2019.
Engineering Services segment reported a loss before income tax of S$0.5 million in 1QFY2018 as compared to S$Nil in 1QFY2019, due to the completion of the engineering project in the Middle East and the disposal of an engineering services subsidiary in FY2018.
Trading segment registered a loss before income tax of S$0.01 million in 1QFY2019 as compared to a profit before income tax of S$0.02 million in 1QFY2018, mainly due to lower sales in 1QFY2019.
Review of Statements of Financial Position and Cash Flows
Cash and cash equivalents per consolidated statement of cash flow increased by S$0.7 million from S$8.5 million as at 30 June 2018 to S$9.2 million as at 30 September 2018 mainly due to net cash inflows from operating activities and financing activities of S$5.3 million and S$4.3 million respectively. This was offset by the net cash outflow from investing activities of S$8.9 million. Net cash outflow from investing activities of S$8.9 million resulted mainly from the purchase of property, plant and equipment of S$9.6 million offset by proceeds from disposal of property, plant and equipment of S$0.7 million. Net cash inflow from financing activities of S$4.3 million resulted mainly from the proceeds from borrowings of S$11.2 million offset by the repayment of borrowings of S$6.1 million.
As at 30 September 2018, the Group was in a net current liabilities position of S$0.6 million, mainly due to bills payables to bank for the purchase of major equipment amounted to S$9.0 million. The Group had sufficient undrawn financing facilities committed from large reputable financial institutions to meet its commitments as well as to repay debts as and when they fall due for the next twelve months from 30 September 2018.
Trade and other receivables increased by S$6.6 million from S$42.9 million as at 30 June 2018 to S$49.5 million as at 30 September 2018. This was mainly attributable to the higher turnover recorded in this quarter.
Other current assets increased by S$1.1 million from S$1.2 million as at 30 June 2018 to S$2.3 million as at 30 September 2018, mainly due to the increase in prepayments for insurance premium.
Commentary On Current Year Prospects
The operating environment continues to be challenging and competitive amid the slowdown in demand in the key markets we operate in. The Group expects that the on-going public sector infrastructure development in Singapore will provide support for more business opportunities.
The Group remains committed to effectively managing operating costs and business risks to stay competitive. It will continue to explore strategic collaborations and leverage on its capabilities and track record as a one-stop integrated heavy lift specialist and service provider to target complex and high value projects to grow the business.