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Financial Statements

Full Year Financial Statement and Dividend Announcement

Financials Archive

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  Group
  FY 2017
S$'000
FY 2016
S$'000
Increase/ (Decrease)
%
Revenue 114,794 139,435 (18)
Cost of sales (88,146) (106,194) (17)
Gross profit 26,648 33,241 (20)
Other income 1,119 1,090 3
Other gains/(losses) - net 2,583 (276) NM
Expenses      
- Administrative (1,439) (1,758) (18)
- Other operating (32,216) (37,280) (14)
- Finance (3,666) (3,738) (2)
Share of (loss)/profit of associated companies (451) 135 NM
Share of loss of a joint venture (32) (100) (68)
Loss before income tax (7,454) (8,686) (14)
Income tax expense (2,429) (1,304) 86
Total loss (9,883) (9,990) (1)
Other comprehensive (loss)/income:      
Items that may be subsequently reclassified to profit or loss:      
Currency translation differences arising from consolidation      
- Losses (286) (1,986) (86)
Fair value gains/(losses) on cash flow hedges 6 (2) NM
  (280) (1,988) (86)
Total comprehensive loss (10,163) (11,978) (15)
Loss attributable to:      
Equity holders of the Company (9,640) (9,667) (0)
Non-controlling interest (243) (323) (25)
  (9,883) (9,990) (1)
Total comprehensive loss attributable to:      
Equity holders of the Company (9,894) (11,625) (15)
Non-controlling interest (269) (353) (24)
  (10,163) (11,978) (15)
Denotes: NM - not meaningful

Note to the Statement of Comprehensive Income

  Group
  FY 2017
S$'000
FY 2016
S$'000
Increase/ (Decrease)
%
Loss after income tax was stated after (charging)/crediting:-
Dividend income 10 7 43
Depreciation of property, plant and equipment (31,133) (31,394) (1)
Currency exchange gain/(loss) - net 425 (2,166) NM
Gain on disposal of property, plant and equipment 1,619 1,953 (17)
Gain on disposal of a subsidiary 322 - NM
Fair value gain/(loss) on financial assets at fair value through profit or loss 63 (195) NM
Allowance for foreseeable loss on engineering contract - (1,985) (100)
Bad debt written off (213) - NM
Impairment loss on other receivables (900) - NM
Impairment loss on trade receivables (7,374) (10,644) (31)
Impairment loss on trade receivables written back 1,457 884 65
Impairment loss on club membership written back 30 - NM
Interest income 66 146 (55)
Interest expense (3,512) (3,606) (3)
(Under)/Over provision in prior years' current income tax (14) 135 NM
(Under)/Over provision in prior years' deferred tax (62) 616 NM
Denotes: NM - not meaningful

Balance Sheet

  Group
  As at
30/06/2017
S$'000
As at
30/06/2016
S$'000
ASSETS    
Current assets    
Cash and cash equivalents 10,879 14,258
Financial assets at fair value through profit or loss 462 399
Trade and other receivables 42,835 53,927
Tax recoverable 53 110
Inventories 1,510 1,425
Other current assets 1,843 2,203
  57,582 72,322
Assets of disposal group classified as held for sale - 1,265
  57,582 73,587
Non-current assets    
Other assets - 114
Other receivables - -
Investment in associated companies 3,121 3,531
Investment in a joint venture 2,074 2,059
Investment in subsidiaries - -
Property, plant and equipment 380,236 393,571
Deferred income tax assets 491 134
  385,922 399,409
Total assets 443,504 472,996
     
LIABILITIES    
Current liabilities    
Trade and other payables 42,370 48,812
Current income tax liabilities 1,708 1,455
Borrowings 29,871 30,642
Derivative financial instruments 12 12
  73,961 80,921
Liabilities directly associated with disposal    
group classified as held for sale - 5,492
  73,961 86,413
Non-current liabilities    
Borrowings 95,305 105,339
Derivative financial instruments 4 10
Deferred income tax liabilities 26,646 26,376
  121,955 131,725
Total liabilities 195,916 218,138
NET ASSETS 247,588 254,858
     
EQUITY    
Capital and reserves attributable    
to equity holders of the Company    
Share capital 87,340 87,340
Other reserves (4,200) (3,645)
Retained earnings 163,574 173,377
  246,714 257,072
Non-controlling interest 874 (2,214)
Total equity 247,588 254,858

Review on Group's Financial Results

Full Year ended 30 June 2017 (FY2017) vs Full Year ended 30 June 2016 (FY2016)

Revenue FY 2017
S$'000
FY 2016
S$'000
Increase/ (Decrease)
%
Heavy Lift and Haulage 98,255 123,206 (20)
Marine Transportation 3,314 3,863 (14)
Engineering Services 10,338 11,049 (6)
Trading 2,887 1,317 119
  114,794 139,435 (18)

Revenue was S$114.8 million in FY2017, a decrease of S$24.6 million or 18% from S$139.4 million in FY2016. The decrease was mainly attributed to the decrease in contributions from the Heavy Lift and Haulage segment.

Heavy Lift and Haulage segment revenue decreased by S$24.9 million or 20% from S$123.2 million to S$98.3 million, mainly due to a decrease in contributions from Singapore, the Middle East and India.

Marine Transportation segment revenue decreased by S$0.6 million or 14% from S$3.9 million to S$3.3 million, mainly due to fewer chartering jobs secured as a result of the downturn in the offshore and marine industry.

Engineering Services segment revenue decreased by S$0.7 million or 6% from S$11.0 million to S$10.3 million, mainly due to the substantial completion of a project in the Middle East.

Trading segment revenue increased by S$1.6 million or 119% from S$1.3 million to S$2.9 million, mainly due to more equipment sold.

Gross Profit was S$26.6 million in FY2017, a decrease of S$6.6 million or 20% from S$33.2 million in FY2016. Gross Profit Margin was slightly lower at 23.2% in FY2017 as compared to 23.8% in FY2016. This was mainly due to the lower gross profit and gross profit margin from the Heavy Lift and Haulage segment.

Other Gains/(Losses) -net recorded a gain of S$2.6 million in FY2017 as compared to a loss of S$0.3 million in FY2016. This was mainly attributable to gain on disposal of plant and equipment of S$1.6 million, operational exchange gain of S$0.6 million and gain from the disposal of a subsidiary of S$0.3 million in FY2017, as compared to operational exchange loss of S$2.0 million that was offset by gain on disposal of plant and equipment of S$1.9 million in FY2016.

Administrative Expenses were S$1.4 million in FY2017, a decrease of S$0.4 million or 18% from S$1.8 million in FY2016, mainly due to lower professional fees incurred.

Other Operating Expenses were S$32.2 million in FY2017, a decrease of S$5.1 million or 14% from S$37.3 million in FY2016. This was mainly due to lower net impairment loss on receivables (including write-back) of S$6.8 million in FY2017 as compared to S$9.8 million in FY2016. There was also reduction in manpower costs and other operating expenses in FY2017.

Loss before Income Tax FY 2017
S$'000
FY 2016
S$'000
Increase/ (Decrease)
%
Heavy Lift and Haulage 1,673 6,881 (76)
Marine Transportation (2,930) (5,055) (42)
Engineering (6,220) (10,134) (39)
Trading 23 (378) NM
  (7,454) (8,686) (14)

Loss before Income Tax was S$7.5 million in FY2017 as compared to S$8.7 million in FY2016.

Heavy Lift and Haulage segment profit before income tax was S$1.7 million in FY2017, a decrease of S$5.2 million or 76% from S$6.9 million in FY2016, mainly due to lower turnover and gross profit in FY2017. There was an exchange gain of S$0.4 million and a net impairment loss of receivables (including write-back) of S$2.9 million in FY2017 as compared to an exchange loss of S$2.1 million and net impairment loss of trade receivables (including write-back) of S$1.9 million in FY2016.

Marine Transportation segment registered a loss before income tax of S$2.9 million in FY2017, a decrease of S$2.1 million or 42% from S$5.0 million in FY2016, mainly due to a net write-back of impairment loss on trade receivables of S$0.4 million in FY2017 as compared to an impairment loss on trade receivables of S$1.9 million in FY2016.

Engineering Services segment incurred a loss before income tax of S$6.2 million in FY2017, a decrease of S$3.9 million or 39% from S$10.1 million in FY2016, mainly due to an impairment loss on trade receivables of S$4.2 million in FY2017 as compared to an impairment loss on trade receivables of S$6.0 million and an allowance for foreseeable loss on engineering contract of S$2.0 million in FY2016.

Trading segment recorded a profit before income tax of S$0.02 million as compared to a loss before income tax of S$0.4 million in FY2016, mainly due to higher trading sales of equipment in FY2017.

Review of Statements of Financial Position and Cash Flows

Cash and cash equivalents per consolidated statement of cash flow decreased by S$2.7 million from S$11.1 million as at 30 June 2016 to S$8.4 million as at 30 June 2017 mainly due to net cash outflow from financing activities of S$27.3 million and net cash outflow from investing activities of S$3.4 million. This was offset by the net cash inflow from operating activities of S$28.0 million. Net cash outflow from financing activities of S$27.3 million resulted mainly from repayment of borrowings of S$34.4 million, offset by proceeds from borrowings of S$11.0 million.

As at 30 June 2017, the Group was in a net current liabilities position of S$16.4 million, mainly due to the non-cash impairment loss on receivables (including write-back) of S$6.8 million in FY2017. 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 June 2017.

Trade and other receivables decreased by S$11.1 million from S$53.9 million as at 30 June 2016 to S$42.8 million as at 30 June 2017, mainly due to net impairment loss on receivables (including write-back) of S$6.8 million and lower revenue in FY2017.

Total trade and other payables decreased by S$6.4 million from S$48.8 million as at 30 June 2016 to S$42.4 million as at 30 June 2017. The decrease was mainly due to payments to creditors for purchases and services; and payment to the main contractor for the redevelopment of its premises at 15 Pandan Crescent.

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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