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Financial Statements

Third Quarter Financial Statement And Dividend Announcement

Financials Archive

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Statement of comprehensive income

  Group Group
  3QFY2018
S$'000
3QFY2017
S$'000
Increase/ (Decrease)
%
9MFY2018
S$'000
9MFY2017
S$'000
Increase/ (Decrease)
%
Revenue 22,807 24,264 (6) 74,492 89,910 (17)
Cost of sales (16,755) (19,293) (13) (55,323) (68,667) (19)
Gross profit 6,052 4,971 22 19,169 21,243 (10)
Other income 118 233 (49) 757 772 (2)
Other (losses)/gains - net (663) (1,234) (46) (561) 2,740 NM
Expenses            
- Administrative (351) (391) (10) (1,012) (1,118) (9)
- Other operating (3,938) (5,874) (33) (15,900) (18,559) (14)
- Finance (782) (716) 9 (2,371) (2,763) (14)
Share of loss of associated companies (183) (122) 50 (282) (281) 0
Share of profit/(loss) of a joint venture 13 18 (28) 20 (41) NM
Profit/(Loss) before income tax 266 (3,115) NM (180) 1,993 NM
Income tax (expense)/credit (249) 121 NM (954) (1,562) (39)
Total profit/(loss) 17 (2,994) NM (1,134) 431 NM
Other comprehensive income/(loss):
Items that may be subsequently reclassified
to profit or loss:
Currency translation differences arising from
consolidation - gain/(loss) 1,271 (395) NM 2,468 (692) NM
Fair value gain/(loss) on cash flow hedges 1 (5) NM 15 8 88
  1,272 (400) NM 2,483 (684) NM
Total comprehensive income/(loss) 1,289 (3,394) NM 1,349 (253) NM
Profit/(Loss) attributable to:
Equity holders of the Company 32 (2,897) NM (885) 423 NM
Non-controlling interest (15) (97) (85) (249) 8 NM
  17 (2,994) NM (1,134) 431 NM
Total comprehensive income/(loss) attributable to:
Equity holders of the Company 1,312 (3,286) NM 1,581 (245) NM
Non-controlling interest (23) (108) (79) (232) (8) 2800
  1,289 (3,394) NM 1,349 (253) NM
Denotes: NM - not meaningful

Note to the Statement of Comprehensive Income

  Group
  3QFY2018
S$'000
3QFY2017
S$'000
Increase/ (Decrease)
%
9MFY2018
S$'000
9MFY2017
S$'000
Increase/ (Decrease)
%
Profit/(Loss) after income tax was stated after crediting/(charging):
Depreciation of property, plant and equipment (7,537) (7,759) (3) (22,858) (23,395) (2)
Currency exchange (loss)/gain - net (570) (1,183) (52) (1,161) 879 NM
(Loss)/Gain on disposal of property, plant and equipment (13) 41 NM 1,060 1,462 (27)
(Loss)/Gain on disposal of a subsidiary - - NM (461) 322 NM
Fair value (loss)/gain on financial assets at fair value through profit or loss (70) 27 NM 37 33 12
Write-back of allowance for foreseeable loss on engineering contract 542 - NM 542 - NM
Impairment loss on trade receivables - - NM - (18) NM
Write-back of impairment loss on trade receivables 572 203 182 778 735 6
Interest income 5 25 (80) 19 62 (69)
Interest expense (793) (836) (5) (2,406) (2,719) (12)
Under provision in prior years' current income tax - (64) (100) (10) (89) (89)
Over provision in prior years' deferred tax - - NM 4 14 (71)
Denotes: NM - not meaningful

Balance Sheet

  Group
  As at
31/03/2018
S$'000
As at
30/06/2017
S$'000
ASSETS    
Current assets    
Cash and cash equivalents 7,647 10,879
Financial assets at fair value through profit or loss 498 462
Trade and other receivables 42,554 42,835
Tax recoverable 98 53
Inventories 1,381 1,510
Other current assets 1,603 1,843
  53,781 57,582
     
Non-current assets    
Other receivables - -
Investment in associated companies 2,742 3,121
Investment in a joint venture 1,995 2,074
Investment in subsidiaries - -
Property, plant and equipment 359,532 380,236
Deferred income tax assets 451 491
  364,720 385,922
Total assets 427,304 443,504
     
LIABILITIES    
Current liabilities    
Trade and other payables 29,779 42,370
Current income tax liabilities 1,218 1,708
Borrowings 24,210 29,871
Derivative financial instruments 1 12
  55,208 73,961
     
Non-current liabilities    
Borrowings 87,979 95,305
Derivative financial instruments - 4
Deferred income tax liabilities 26,820 26,646
  114,799 121,955
Total liabilities 170,007 195,916
NET ASSETS 248,494 247,588
     
EQUITY    
Capital and reserves attributable to    
equity holders of the Company    
Share capital 87,340 87,340
Other reserves (1,734) (4,200)
Retained earnings 162,689 163,574
  248,295 246,714
Non-controlling interest 199 874
Total equity 248,494 247,588

Review on Group's Financial Results

3 Months ended 31 March 2018 (3QFY2018) vs 3 Months ended 31 March 2017 (3QFY2017)

Revenue 3QFY2018
S$'000
3QFY2017
S$'000
Increase/ (Decrease)
%
9MFY2018
S$'000
9MFY2017
S$'000
Increase/ (Decrease)
%
Heavy Lift and Haulage 21,620 22,403 (3) 69,424 75,363 (8)
Marine Transportation 1,111 667 67 2,079 2,642 (21)
Engineering Services - 1,083 (100) 921 10,149 (91)
Trading 76 111 (32) 2,068 1,756 18
  22,807 24,264 (6) 74,492 89,910 (17)

Revenue was S$22.8 million in 3QFY2018, a decrease of S$1.5 million or 6% from S$24.3 million in 3QFY2017. The decrease was mainly attributed to the decrease in contributions from the Heavy Lift and Haulage and Engineering Services segments.

Heavy Lift and Haulage segment revenue decreased by S$0.8 million or 3% from S$22.4 million in 3QFY2017 to S$21.6 million in 3QFY2018. There were fewer projects executed in Singapore and the Middle East but offset by an increase in projects from India and Malaysia in 3QFY2018.

Marine Transportation segment revenue increased by S$0.4 million or 67% from S$0.7 million in 3QFY2017 to S$1.1 million in 3QFY2018, mainly due to new projects secured in Singapore and Malaysia.

Engineering Services segment revenue decreased by S$1.1 million or 100% to S$Nil in 3QFY2018, mainly due to the completion of a project in the Middle East and the disposal of a subsidiary in 2QFY2018.

Trading segment revenue remained low at S$0.1 million for both 3QFY2018 and 3QFY2017 as there was no equipment sold during these quarters.

Gross Profit was S$6.1 million in 3QFY2018, an increase of S$1.1 million or 22% from S$5.0 million in 3QFY2017. Gross Profit Margin was higher at 27% in 3QFY2018 as compared to 20% in 3QFY2017, mainly due to a write-back of allowance for foreseeable loss on a completed engineering contract in 3QFY2018 and improved performance from the Marine Transportation segment.

Other income was S$0.1 million in 3QFY2018, a decrease of S$0.1 million or 49% from S$0.2 million in 3QFY2017, mainly due to insurance claims of S$0.1 million received in 3QFY2017 and none in 3QFY2018.

Other Losses - net was S$0.7 million in 3QFY2018, a decrease of S$0.5 million or 46% from S$1.2 million in 3QFY2017. This was mainly attributable to lower operational exchange loss of S$0.6 million in 3QFY2018 as compared to S$1.3 million in 3QFY2017.

Other Operating Expenses were S$3.9 million in 3QFY2018, a decrease of S$2.0 million or 33% from S$5.9 million in 3QFY2017, mainly due to reduction in manpower costs and other operating expenses. In addition, write-back of impairment loss on trade receivables was also higher at S$0.5 million in 3QFY2018 as compared to S$0.2 million in 3QFY2017.

Profit/(Loss) before Income Tax 3QFY2018
S$'000
3QFY2017
S$'000
Increase/ (Decrease)
%
9MFY2018
S$'000
9MFY2018
S$'000
Increase/ (Decrease)
%
Heavy Lift and Haulage 231 (1,104) NM 1,508 5,362 (72)
Marine Transportation (456) (1,217) (63) (1,419) (2,243) (37)
Engineering 554 (725) NM (302) (1,312) (77)
Trading (63) (69) (9) 33 186 (82)
  266 (3,115) NM (180) 1,993 NM

Profit before Income Tax was S$0.3 million in 3QFY2018 as compared to loss before income tax of S$3.1 million in 3QFY2017.

Heavy Lift and Haulage segment recorded a profit before income tax of S$0.2 million in 3QFY2018 as compared to a loss before income tax of S$1.1 million in 3QFY2017. This was mainly attributable to reduction in manpower costs and other operating expenses. In addition, there was a write-back of impairment loss on trade receivables of S$0.5 million in 3QFY2018 as compared to S$0.2 million in 3QFY2017. Exchange loss was also reduced to S$0.6 million in 3QFY2018 from an exchange loss of S$1.0 million in 3QFY2017.

Marine Transportation segment incurred a loss before income tax of S$0.5 million in 3QFY2018, a decrease of S$0.7 million or 63%, from S$1.2 million in 3QFY2017, mainly due to higher turnover and a write-back of impairment loss on trade receivable of S$0.1 million in 3QFY2018.

Engineering Services segment registered a profit before income tax of S$0.6 million in 3QFY2018 as compared to a loss before income tax of S$0.7 million in 3QFY2017, mainly due to write-back of allowance for foreseeable loss of S$0.5 million for a completed project.

Trading segment reported a loss before income tax of S$0.1 million in both 3QFY2018 and 3QFY2017.

The effective tax rate of the Group was higher, mainly due to losses incurred by overseas subsidiaries which cannot be offset against profit earned by other entities in the Group.

Review of Statements of Financial Position and Cash Flows

Cash and cash equivalents per consolidated statement of cash flow decreased by S$1.0 million from S$8.4 million as at 30 June 2017 to S$7.4 million as at 31 March 2018 mainly due to net cash outflow from financing activities of S$18.7 million. This was offset by the net cash inflows from operating activities and investing activities of S$16.9 million and S$0.8 million respectively. Net cash outflow from financing activities of S$18.7 million resulted mainly from the repayment of borrowings of S$27.6 million offset by proceeds from borrowings of S$11.2 million.

As at 31 March 2018, the Group was in a net current liabilities position of S$1.4 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 31 March 2018.

Total other current assets decreased by S$0.2 million from S$1.8 million as at 30 June 2017 to S$1.6 million as at 31 March 2018, mainly due to lower deposits paid to suppliers for purchase of equipment.

Total trade and other payables decreased by S$12.6 million from S$42.4 million as at 30 June 2017 to S$29.8 million as at 31 March 2018. The decrease was mainly due to payments to creditors for purchases of equipment and services; and payment to the main contractor for the redevelopment of its premises at 15 Pandan Crescent.

Total borrowings decreased by S$13.0 million from S$125.2 million as at 30 June 2017 to S$112.2 million as at 31 March 2018, mainly due to repayment of bank borrowings.

Current income tax liabilities decreased by S$0.5 million from S$1.7 million as at 30 June 2017 to S$1.2 million as at 31 March 2018, mainly due to payment of income tax 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.

The Group remains committed to effectively manage 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.

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