Financial Statements
Condensed interim financial statements For the six months ended 31 December 2023
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Condensed interim consolidated statement of profit or loss and other comprehensive income
Group | ||||||
---|---|---|---|---|---|---|
6 months ended | ||||||
31 December 2023 S$'000 |
31 December
2022 S$'000 |
Increase/ (Decrease) % |
||||
Revenue | 75,255 | 65,884 | 14 | |||
Cost of sales | (42,380) | (37,492) | 13 | |||
Gross profit | 32,875 | 28,392 | 16 | |||
Other income | 1,661 | 1,923 | (14) | |||
Impairment (loss)/written back on financial assets - net | (146) | 14 | NM | |||
Other losses - net | (421) | (2,620) | (84) | |||
Expenses | ||||||
- Administrative | (880) | (623) | 41 | |||
- Other operating | (17,043) | (16,046) | 6 | |||
- Finance | (1,936) | (1,725) | 12 | |||
Share of (loss)/profit of associated companies | (12) | 139 | NM | |||
Profit before income tax | 14,098 | 9,454 | 49 | |||
Income tax expense | (3,242) | (2,236) | 45 | |||
Total profit | 10,856 | 7,218 | 50 | |||
Other comprehensive income/(loss): | ||||||
Items that may be subsequently reclassified to profit or loss: | ||||||
Currency translation differences arising from consolidation | ||||||
- Gain/(Loss) | 674 | (602) | NM | |||
Total comprehensive income | 11,530 | 6,616 | 74 | |||
Profit/(Loss) attributable to: | ||||||
Equity holders of the Company | 10,770 | 7,228 | 49 | |||
Non-controlling interest | 86 | (10) | NM | |||
10,856 | 7,218 | 50 | ||||
Total comprehensive income/(loss) attributable to: | ||||||
Equity holders of the Company | 11,445 | 6,626 | 73 | |||
Non-controlling interest | 85 | (10) | NM | |||
11,530 | 6,616 | 74 | ||||
Earnings per share attributable to equity holders of the Company | ||||||
Basic (SGD in cent) | 4.65 | 3.12 | 49 | |||
Diluted (SGD in cent) | 4.65 | 3.12 | 49 | |||
NM: Not meaningful |
Condensed interim statements of financial positions
Group | ||
---|---|---|
As at 31 December 2023 S$'000 |
As at 30 June 2023 S$'000 |
|
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 61,663 | 75,504 |
Financial assets, at fair value through profit or loss | 196 | 191 |
Trade and other receivables | 62,552 | 47,189 |
Tax recoverable | 198 | 80 |
Inventories | 3,285 | 2,329 |
Other assets | 2,917 | 2,328 |
130,811 | 127,621 | |
Assets held-for-sale | 742 | 4,198 |
131,553 | 131,819 | |
Non-current assets | ||
Other assets | 1,160 | 1,176 |
Other receivables | - | - |
Investments in associated companies | 2,936 | 3,018 |
Investments in subsidiaries | - | - |
Property, plant and equipment | 375,525 | 342,993 |
Right-of-use assets | 11,993 | 12,379 |
Deferred income tax assets | 125 | 128 |
391,739 | 359,694 | |
Total assets | 523,292 | 491,513 |
LIABILITIES | ||
Current liabilities | ||
Trade and other payables | 57,480 | 42,312 |
Current income tax liabilities | 4,174 | 4,300 |
Borrowings | 21,326 | 20,768 |
82,980 | 67,380 | |
Non-current liabilities | ||
Trade and other payables | 33,308 | 24,221 |
Borrowings | 75,249 | 78,480 |
Deferred income tax liabilities | 29,255 | 28,144 |
137,812 | 130,845 | |
Total liabilities | 220,792 | 198,225 |
NET ASSETS | 302,500 | 293,288 |
EQUITY | ||
Capital and reserves attributable to | ||
the equity holders of the Company | ||
Share capital | 87,340 | 87,340 |
Treasury shares | (192) | (192) |
Other reserves | (2,119) | (2,794) |
Retained earnings | 217,457 | 209,005 |
302,486 | 293,359 | |
Non-controlling interest | 14 | (71) |
Total equity | 302,500 | 293,288 |
Review on Group's Financial Results
6 Months ended 31 December 2023 (1HFY2024) vs 6 Months ended 31 December 2022 (1HFY2023)
Revenue | 1HFY2024 S$'000 |
1HFY2023 S$'000 |
Increase/ (Decrease) % |
---|---|---|---|
Heavy Lift and Haulage | |||
- External | 73,571 | 63,786 | 15% |
- Inter-segment | 198 | 219 | (10%) |
73,769 | 64,005 | 15% | |
Marine Transportation | |||
- External | 1,155 | 1,594 | (28%) |
- Inter-segment | 1,154 | 995 | (16%) |
2,309 | 2,589 | (11%) | |
Trading | |||
- External | 529 | 504 | 5% |
Less: Inter-segment | (1,352) | (1,214) | 11% |
75,255 | 65,884 | 14% |
Revenue was $75.3 million in 1HFY2024, an increase of $9.4 million or 14% from $65.9 million in 1HFY2023. The increase was mainly attributable to the increase in contributions from Heavy Lift and Haulage segment.
Heavy Lift and Haulage segment external revenue increased by $9.8 million or 15% from $63.8 million in 1HFY2023 to $73.6 million in 1HFY2024, mainly due to higher revenue derived from Singapore, Thailand, Middle East and India offset by lower revenue derived from Indonesia.
Marine Transportation segment external revenue decreased by $0.4 million or 28% from $1.6 million in 1HFY2023 to $1.2 million in 1HFY2024, mainly due to fewer chartering jobs for external parties as compared to inter-segment.
Trading segment revenue remained stable at $0.5 million for both 1HFY2024 and 1HFY2023.
Gross profit was $32.9 million in 1HFY2024, an increase of $4.5 million or 16% from $28.4 million in 1HFY2023, mainly due to higher turnover from Heavy Lift and Haulage segment. Gross profit margin was higher at 44% in 1HFY2024 as compared to 43% in 1HFY2023, mainly due to higher margins earned by Heavy Lift and Haulage segment.
Other income was $1.7 million in 1HFY2024, a decrease of $0.3 million or 14% from $1.9 million in 1HFY2023, mainly due to lower miscellaneous gains offset by higher interest income.
Impairment (loss)/written back on financial assets - net was a loss of $0.1 million in 1HFY2024 as compared to a write back of $0.01 million in 1HFY2023, mainly due to a decrease of $0.4 million in recovery of previously impaired trade receivables offset by a decrease of $0.2 million in impairment loss on trade receivables in 1HFY2024.
Other Losses - net was $0.4 million in 1HFY2024, a decrease of $2.2 million or 84% from $2.6 million in 1HFY2023. This was attributable to currency exchange loss of $2.4 million offset by gain on disposal of property, plant and equipment of $2.0 million in 1HFY2024, as compared to currency exchange loss of $3.0 million offset by gain on disposal of property, plant and equipment of $0.4 million in 1HFY2023.
Administrative expenses were $0.9 million in 1HFY2024, an increase of $0.3 million or 41% from $0.6 million in 1HFY2023, mainly due to higher professional fees.
Finance expenses were $1.9 million in 1HFY2024, an increase of $0.2 million or 12% from $1.7 million in 1HFY2023, mainly due to higher interest rates on bank borrowings during the current financial period.
Income Tax Expense was $3.2 million in 1HFY2024, an increase of $1.0 million or 45% from $2.2 million in 1HFY2023, mainly due to higher tax provision made for current financial period profit.
Profit/(Loss) Before Tax | 1HFY2024 S$'000 |
1HFY2023 S$'000 |
Increase/ (Decrease) % |
---|---|---|---|
Heavy Lift and Haulage | 13,755 | 8,976 | 53% |
Marine Transportation | 312 | 553 | (44%) |
Trading | 31 | (75) | NM |
14,098 | 9,454 | 49% |
Profit before Income Tax was $14.1 million in 1HFY2024, an increase of $4.6 million or 49% from $9.5 million in 1HFY2023.
Heavy Lift and Haulage segment profit before income tax was $13.8 million in 1HFY2024, an increase of $4.8 million or 53% from $9.0 million in 1HFY2023. This was mainly due to higher revenue and gain on disposal of property, plant and equipment offset by higher cost of sales and other operating expenses in 1HFY2024.
Marine Transportation segment recorded a profit before income tax of $0.3 million in 1HFY2024, a decrease of $0.2 million or 44% from $0.6 million in 1HFY2023. This was mainly due to lower revenue and share of loss of associated companies in 1HFY2024 as compared to share of profit of associated companies in 1HFY2023.
Trading segment recorded a profit before income tax of $0.03 million in 1HFY2024, as compared to a loss of $0.08 million in 1HFY2023, mainly due to lower currency exchange loss in 1HFY2024.
Review of Statements of Financial Position and Cash Flows
Cash and cash equivalents per consolidated statement of cash flow decreased by $15.7 million from $74.7 million as at 30 June 2023 to $58.9 million as at 31 December 2023 mainly due to net cash outflow from investing activities and financing activities of $14.4 million and $11.8 million respectively. This was offset by net cash inflows from operating activities of $10.5 million. Net cash outflow from investing activities of $14.4 million resulted mainly from purchases of property, plant and equipment of $18.2 million, as well as fixed deposits of $6.4 million placed in escrow relating to the purchase of property, plant and equipment. Net cash outflow from financing activities of $11.8 million resulted mainly from repayment of bank borrowings and other secured borrowings of $10.3 million, as well as dividends paid to equity holders of the Company of $2.3 million.
Total trade and other receivables (current) increased by $15.4 million from $47.2 million as at 30 June 2023 to $62.6 million as at 31 December 2023, mainly due to higher revenue recorded in the current financial period, as well as fixed deposits placed in escrow relating to purchase of property, plant and equipment amounting to $6.4 million.
Other assets (current and non-current) increased by $0.6 million from $3.5 million as at 30 June 2023 to $4.1 million as at 31 December 2023, mainly due to the increase in prepayments for insurance premium.
Assets held-for-sale decreased by $3.5 million from $4.2 million as at 30 June 2023 to $0.7 million as at 31 December 2023 as one of these assets were sold in 1HFY2024.
Total trade and other payables (current and non-current) increased by $24.3 million from $66.5 million as at 30 June 2023 to $90.8 million as at 31 December 2023. The increase was mainly due to increase in purchases of equipment with longer credit terms.
Commentary On Current Year Prospects
The business environment continues to be uncertain, amid the confluence of ongoing geopolitical tensions, military conflicts, ensuing supply chain disruptions, a busy political calendar, challenges in the Chinese economy, still-high interest rates, as well as persistent cost pressures.
Notwithstanding the above-mentioned, the Group maintains its positive outlook, that customer demand for its Heavy Lift and Haulage solutions should remain resilient in Singapore, particularly in the petrochemical and construction sectors, as well as in key regional markets such as India, Saudi Arabia, and Thailand.
The Group will be vigilant in managing cashflow, operating costs, and potential business risks within the dynamic and uncertain operating environment.
We will continue to actively pursue opportunities that emerge from the requirements for infrastructure and petrochemical investments, leveraging our position as a prominent one-stop integrated heavy lift specialist and service provider.