Email This Print ThisFinancial Statements

Second Quarter and First Half Financial Statements and Dividend Announcement

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

  Group Group
  2QFY2017
S$'000
2QFY2016
S$'000
Increase/ (Decrease)
%
1HFY2017
S$'000
1HFY2016
S$'000
Increase/ (Decrease)
%
Revenue 31,257 35,413 (12) 65,646 68,511 (4)
Cost of sales (22,475) (27,204) (17) (49,374) (52,324) (6)
Gross profit 8,782 8,209 7 16,272 16,187 1
Other income 26 18 44 37 48 (23)
Other gains/(loss) - net 2,097 274 665 4,476 (293) NM
Expenses      
- Administrative (311) (429) (28) (727) (867) (16)
- Other operating (6,439) (7,180) (10) (12,685) (18,052) (30)
- Finance (1,041) (626) 66 (2,047) (1,501) 36
Share of (loss)/profit of associated companies (45) 165 NM (159) 158 NM
Share of loss of a joint venture (45) (7) 543 (59) (49) 20
Profit/(Loss) before income tax 3,024 424 613 5,108 (4,369) NM
Income tax expense (1,015) (387) 162 (1,683) (637) 164
Total profit/(loss) 2,009 37 5330 3,425 (5,006) NM
Other comprehensive income/(loss):            
Items that may be subsequently reclassified to profit or loss:            
Currency translation differences arising from consolidation – loss (203) (54) 276 (297) (1,256) (76)
Fair value gain/(loss) on cash flow hedges 29 (20) NM 13 (92) NM
  (174) (74) 135 (284) (1,348) (79)
             
Total comprehensive income/(loss) 1,835 (37) NM 3,141 (6,354) NM
Profit/(Loss) attributable to:            
Equity holders of the Company 1,816 (67) NM 3,320 (3,677) NM
Non-controlling interest 193 104 86 105 (1,329) NM
  2,009 37 5330 3,425 (5,006) NM
Total comprehensive income/(loss) attributable to:            
Equity holders of the Company 1,633 (128) NM 3,041 (5,012) NM
Non-controlling interest 202 91 122 100 (1,342) NM
  1,835 (37) NM 3,141 (6,354) NM
Denotes: NM - not meaningful

Note to the Statement of Comprehensive Income

  Group Group
  2QFY2017
S$'000
2QFY2016
S$'000
Increase/ (Decrease)
%
1HFY2017
S$'000
1HFY2016
S$'000
Increase/ (Decrease)
%
Profit/(loss) after income tax was stated after crediting/(charging):
Depreciation of property, plant and equipment (7,824) (7,556) 4 (15,636) (15,261) 2
Currency exchange gain/(loss) – net 1,563 167 836 2,062 (640) NM
Gain/(loss) on disposal of property, plant and equipment 140 (95) NM 1,421 (67) NM
Gain on disposal of a subsidiary - - NM 322 - NM
Fair value (loss)/gain on financial assets at fair value through profit or loss (17) (18) (6) 6 (119) NM
Impairment loss on trade receivables - (40) (100) (18) (4,940) (100)
Write-back of impairment loss on trade receivables 396 192 106 532 392 36
Interest income 26 18 44 37 48 (23)
Interest expense (916) (632) 45 (1,883) (1,305) 44
(Under)/over provision in prior years' current income tax (25) (30) (17) (25) 136 NM
Over/(under) provision in prior years' deferred tax - 2 (100) 14 (60) NM
Denotes: NM - not meaningful

Balance Sheet

  Group
  As at
31/12/2016
S$'000
As at
30/06/2016
S$'000
ASSETS    
Current assets    
Cash and cash equivalents 19,001 14,258
Financial assets at fair value through profit or loss 406 399
Trade and other receivables 51,897 53,927
Tax recoverable 87 110
Inventories 1,894 1,425
Other current assets 2,301 2,203
  75,586 72,322
Assets of disposal group classified as held for sale - 1,265
  79,547 73,587
Non-current assets    
Other assets 114 114
Other receivables - -
Investment in associated companies 3,553 3,531
Investment in a joint venture 2,152 2,059
Investment in subsidiaries - -
Property, plant and equipment 384,341 393,571
Deferred income tax assets 184 134
  390,344 399,409
Total assets 465,930 472,996
     
LIABILITIES    
Current liabilities    
Trade and other payables 49,602 48,812
Current income tax liabilities 1,240 1,455
Borrowings 29,622 30,642
Derivative financial instruments 6 12
  80,470 80,921
     
Liabilities directly associated with disposal    
group classified as held for sale - 5,492
  80,470 86,413
Non-current liabilities    
Borrowings 97,703 105,339
Derivative financial instruments 2 10
Deferred income tax liabilities 26,863 26,376
  124,568 131,725
Total liabilities 205,038 218,138
NET ASSETS 260,892 254,858
     
EQUITY    
Capital and reserves attributable to equity holders of the Company    
Share capital 87,340 887,340
Other reserves (4,225) (3,645)
Retained earnings 176,534 173,377
  259,649 257,072
Non-controlling interest 1,243 (2,214)
Total equity 260,892 254,858

Review on Group's Financial Results

3 Months ended 31 December 2016 (2QFY2017) vs 3 Months ended 31 December 2015 (2QFY2016)

Revenue 2QFY2017
S$'000
2QFY2016
S$'000
Increase/ (Decrease)
%
1HFY2017
S$'000
1HFY2016
S$'000
Increase/ (Decrease)
%
Heavy Lift and Haulage 25,545 31,601 (19) 52,960 62,657 (15)
Marine Transportation 1,118 1,004 11 1,975 2,069 (5)
Engineering Services 3,420 2,090 64 9,066 2,997 203
Trading 1,174 718 64 1,645 788 109
  31,257 35,413 (12) 65,646 68,511 (4)

Revenue was S$31.3 million in 2QFY2017, a decrease of S$4.1 million or 12% from S$35.4 million in 2QFY2016. The decrease was mainly attributed to the decrease in contributions from Heavy Lift and Haulage segment.

Heavy Lift and Haulage segment revenue decreased by S$6.1 million or 19% from S$31.6 million to S$25.5 million, mainly due to fewer projects executed in Singapore, India and the Middle East.

Marine Transportation segment revenue increased by S$0.1 million or 11% from S$1.0 million to S$1.1 million, mainly due to more chartering jobs undertaken in the current quarter.

Engineering Services segment revenue increased by S$1.3 million or 64% from S$2.1 million to S$3.4 million, mainly due to an increase in progress from a project in the Middle East and the completion of certain projects in Singapore and Vietnam.

Trading segment revenue increased by S$0.5 million or 64% from S$0.7 million to S$1.2 million, mainly due to a higher capacity crane sold in 2QFY2017.

Gross Profit was S$8.8 million in 2QFY2017, an increase of S$0.6 million or 7% from S$8.2 million in 2QFY2016. Gross Profit Margin was also higher at 28% in 2QFY2017 as compared to 23% in 2QFY2016. This was mainly due to higher margins generated from certain engineering services projects in Singapore and Vietnam in the current quarter.

Other Gains -net was S$2.1 million in 2QFY2017, an increase of S$1.8 million or 665% from S$0.3 million in 2QFY2016. This was mainly attributable to an increase of S$1.5 million in operational exchange gain from S$0.2 million in 2QFY2016 to S$1.7 million in 2QFY2017. In addition, there was a gain on disposal of plant and equipment of S$0.1 million as compared to a loss of S$0.1 million in 2QFY2016.

Administrative Expenses were S$0.3 million in 2QFY2017, a decrease of S$0.1 million or 28% from S$0.4 million in 2QFY2016, mainly due to lower professional fees incurred.

Other Operating Expenses were S$6.4 million in 2QFY2017, a decrease of S$0.8 million or 10% from S$7.2 million in 2QFY2016. This was mainly due to reduction in manpower costs and other operating expenses. In addition, there was a higher write-back of impairment loss on trade receivables of S$0.4 million in 2QFY2017 as compared to S$0.2 million in 2QFY2016.

Finance Expenses were S$1.0 million in 2QFY2017, an increase of S$0.4 million or 66% from S$0.6 million in 2QFY2016. This was mainly due to higher interest expense of S$0.9 million in 2QFY2017 as compared to S$0.6 million in 2QFY2016; and a currency translation loss of S$0.09 million relating to foreign currency denominated borrowings in 2QFY2017 as compared to a currency translation gain of S$0.01 million in 2QFY2016. Interest expense on borrowings for the re-development of premises at No. 15 Pandan Crescent were capitalised during the construction phase in 2QFY2016.

Profit/(Loss) before Income Tax 2QFY2017
S$'000
2QFY2016
S$'000
Increase/ (Decrease)
%
1HFY2017
S$'000
1HFY2016
S$'000
Increase/ (Decrease)
%
Heavy Lift and Haulage 3,411 1,776 92 6,466 3,448 88
Marine Transportation (856) (693) 24 (1,026) (3,188) (68)
Engineering 377 (588) NM (587) (4,595) (87)
Trading 92 (71) NM 255 (34) NM
  3,024 424 613 5,108 (4,369) NM

Profit before Income Tax was S$3.0 million in 2QFY2017 as compared to S$0.4 million in 2QFY2016.

Despite the lower revenue, profit before income tax from Heavy Lift and Haulage segment increased by S$1.6 million or 92%, from S$1.8 million in 2QFY2016 to S$3.4 million in 2QFY2017. This was mainly due to an operational exchange gain of S$1.4 million in 2QFY2017 as compared to S$0.02 million in 2QFY2016 and reduction in expenses as a result of active cost management.

Loss before income tax from Marine Transportation segment increased by S$0.2 million or 24%, from S$0.7 million in 2QFY2016 to S$0.9 million in 2QFY2017. This was mainly due to loss of S$0.1 million from associated companies in 2QFY2017 as compared to profit of S$0.2 million from associated companies in 2QFY2016.

Engineering Services segment recorded a profit before income tax of S$0.4 million in 2QFY2017 as compared to a loss before income tax of S$0.6 million in 2QFY2016. This was mainly attributable to higher margins from the completion of certain projects in Singapore and Vietnam.

Trading segment reported a profit before income tax of S$0.1 million in 2QFY2017 as compared to a loss before income tax of S$0.1 million in 2QFY2016. This was mainly due to an operational exchange gain of S$0.2 million in 2QFY2017 as compared to an operational exchange loss of S$0.02 million in 2QFY2016.

Review of Statements of Financial Position and Cash Flows

Cash and cash equivalents per consolidated statement of cash flow increased by S$5.4 million from S$11.1 million as at 30 June 2016 to S$16.5 million as at 31 December 2016 mainly due to net cash inflow from operating activities of S$20.0 million. This was offset by the net cash outflows from investing activities and financing activities of S$0.4 million and S$14.2 million respectively.

As a result of the improved cash and financial position of the Group, the Group's net current liabilities position of S$7.3 million as at 30 June 2016 was reduced to S$4.9 million as at 31 December 2016. The Group has 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 31 December 2016.

Inventories increased by S$0.5 million from S$1.4 million as at 30 June 2016 to S$1.9 million as at 31 December 2016 mainly due to the purchase of trading equipment in 1HFY2017.

Current income tax liabilities decreased by S$0.2 million from S$1.4 million as at 30 June 2016 to S$1.2 million as at 31 December 2016 mainly due to income tax payments made during the current period.

Total borrowings decreased by S$8.7 million from S$136.0 million as at 30 June 2016 to S$127.3 million as at 31 December 2016 mainly due to repayments made during the current period.

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.

Meanwhile, the Group will continue to effectively manage operating costs and business risks to remain competitive. It will also 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.