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Financial Statements

First Quarter Financial Statement And Dividend Announcement

Financials Archive

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  Group
  1QFY2018
S$'000
1QFY2017
S$'000
Increase/ (Decrease)
%
Revenue 23,485 34,389 (32)
Cost of sales (18,235) (26,899) (32)
Gross profit 5,250 7,490 (30)
Other income 144 227 (37)
Other gains - net 21 2,163 (99)
Expenses      
- Administrative (316) (416) (24)
- Other operating (5,663) (6,246) (9)
- Finance (802) (1,006) (20)
Share of profit/(loss) of associated companies 7 (114) NM
Share of loss of a joint venture (5) (14) (64)
(Loss)/Profit before income tax (1,364) 2,084 NM
Income tax expense (215) (668) (68)
Total (loss)/profit (1,579) 1,416 NM
Other comprehensive income/(loss):      
Items that may be subsequently reclassified to profit or loss:      
Currency translation differences arising from consolidation      
- Gains/(Losses) 532 (94) NM
Fair value gains/(losses) on cash flow hedges 8 (16) NM
  540 (110) NM
Total comprehensive (loss)/income (1,039) 1,306 NM
(Loss)/Profit attributable to:      
Equity holders of the Company (1,437) 1,504 NM
Non-controlling interest (142) (88) 61
  (1,579) 1,416 NM
Total comprehensive (loss)/income attributable to:      
Equity holders of the Company (917) 1,408 NM
Non-controlling interest (122) (102) 20
  (1,039) 1,306 NM
Denotes: NM - not meaningful

Note to the Statement of Comprehensive Income

  Group
  1QFY2018
S$'000
1QFY2017
S$'000
Increase/ (Decrease)
%
(Loss)/Profit after income tax was stated after (charging)/crediting:
Depreciation of property, plant and equipment (7,723) (7,812) (1)
Currency exchange (loss)/gain - net (426) 499 NM
Gain on disposal of property, plant and equipment 395 1,281 (69)
Gain on disposal of a subsidiary - 322 (100)
Fair value gain on financial assets at fair value through profit or loss 57 23 148
Impairment loss on trade receivables - (18) (100)
Write-back of impairment loss on trade receivables 43 136 (68)
Interest income 5 11 (55)
Interest expense (807) (967) (17)
Over provision in prior years' deferred tax 4 14 (71)
Denotes: NM - not meaningful

Balance Sheet

  Group
  As at
30/09/2017
S$'000
As at
30/06/2017
S$'000
ASSETS    
Current assets    
Cash and cash equivalents 9,872 10,879
Financial assets at fair value through profit or loss 519 462
Trade and other receivables 43,681 42,835
Tax recoverable 56 53
Inventories 3,074 1,510
Other current assets 2,235 1,843
  59,437 57,582
     
Non-current assets    
Other receivables - -
Investment in associated companies 3,111 3,121
Investment in a joint venture 2,052 2,074
Investment in subsidiaries - -
Property, plant and equipment 375,163 380,236
Deferred income tax assets 478 491
  380,804 385,922
Total assets 440,241 443,504
     
LIABILITIES    
Current liabilities    
Trade and other payables 41,282 42,370
Current income tax liabilities 1,686 1,708
Borrowings 29,201 29,871
Derivative financial instruments 6 12
  72,175 73,961
     
Non-current liabilities    
Borrowings 94,871 95,305
Derivative financial instruments 2 4
Deferred income tax liabilities 26,644 26,646
  121,517 121,955
Total liabilities 193,692 195,916
NET ASSETS 246,549 247,588
     
EQUITY    
Capital and reserves attributable to    
equity holders of the Company    
Share capital 87,340 87,340
Other reserves (3,680) (4,200)
Retained earnings 162,137 163,574
  245,797 246,714
Non-controlling interest 752 874
Total equity 246,549 247,588

Review on Group's Financial Results

3 Months ended 30 September 2017 (1QFY2018) vs 3 Months ended 30 September 2016 (1QFY2017)

Revenue 1QFY2018
S$'000
1QFY2017
S$'000
Increase/ (Decrease)
%
Heavy Lift and Haulage 22,794 27,415 (17)
Marine Transportation 375 856 (56)
Engineering Services 239 5,646 (96)
Trading 77 472 (84)
  23,485 34,389 (32)

Revenue was S$23.5 million in 1QFY2018, a decrease of S$10.9 million or 32% from S$34.4 million in 1QFY2017. The decrease was mainly attributable to the decrease in contributions from Heavy Lift and Haulage and Engineering Services segments.

Heavy Lift and Haulage segment revenue decreased by S$4.6 million or 17% from S$27.4 million in 1QFY2017 to S$22.8 million in 1QFY2018, mainly due to fewer projects executed in Singapore and the Middle East.

Marine Transportation segment revenue decreased by S$0.5 million or 56% from S$0.9 million in 1QFY2017 to S$0.4 million in 1QFY2018, 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$5.4 million or 96% from S$5.6 million in 1QFY2017 to S$0.2 million in 1QFY2018, mainly due to the substantial completion of a project in the Middle East.

Trading segment revenue decreased by S$0.4 million or 84% from S$0.5 million in 1QFY2017 to S$0.1 million in 1QFY2018, mainly due to no trading sale of equipment in 1QFY2018.

Gross Profit was S$5.3 million in 1QFY2018, a decrease of S$2.2 million or 30% from S$7.5 million in 1QFY2017. Gross Profit Margin was consistent at 22% for both 1QFY2018 and 1QFY2017.

Other income was S$0.1 million in 1QFY2018, a decrease of S$0.1 million or 37% from S$0.2 million in 1QFY2017. This was mainly due to lower insurance claim received.

Other Gains - net recorded a gain of S$0.02 million in 1QFY2018 as compared to a gain of S$2.2 million in 1QFY2017. This was mainly attributable to gain on disposal of plant and equipment of S$0.4 million which was offset by operational exchange loss of S$0.4 million in 1QFY2018, as compared to gain on disposal of plant and equipment of S$1.3 million, operational exchange gain of S$0.5 million and gain from the disposal of a subsidiary of S$0.3 million in 1QFY2017.

Administrative Expenses were S$0.3 million in 1QFY2018, a decrease of S$0.1 million or 24% from S$0.4 million in 1QFY2017, mainly due to lower professional fees incurred.

Finance Expenses were S$0.8 million in 1QFY2018, a decrease of S$0.2 million or 20% from S$1.0 million in 1QFY2017, mainly due to the lower bank borrowings.

Loss before Income Tax 1QFY2018
S$'000
1QFY2017
S$'000
Increase/ (Decrease)
%
Heavy Lift and Haulage (455) 3,055 NM
Marine Transportation (475) (170) 179
Engineering (459) (964) (52)
Trading 25 163 (85)
  (1,364) 2,084 NM

Loss before Income Tax was S$1.4 million in 1QFY2018 as compared to a profit before income tax of S$2.1 million in 1QFY2017.

Heavy Lift and Haulage segment registered a loss before income tax of S$0.5 million in 1QFY2018 as compared to a profit before income tax of S$3.1 million in 1QFY2017, mainly due to lower turnover and gross profit in 1QFY2018. There was also operational exchange loss of S$0.4 million in 1QFY2018 as compared to operational exchange gain of S$0.5 million in 1QFY2017.

Marine Transportation segment incurred a loss before income tax of S$0.5 million in 1QFY2018, an increase by S$0.3 million or 179%, from S$0.2 million in 1QFY2017, mainly due to lower turnover and gain on disposal of plant and equipment of S$0.2 million in 1QFY2018 as compared to S$0.9 million in 1QFY2017.

Engineering Services segment recorded loss before income tax of S$0.5 million in 1QFY2018, a decrease by S$0.5 million or 52% from S$1.0 million in 1QFY2017, mainly due to a loss-making project in the Middle East which was substantially completed in 1QFY2018.

Trading segment reported profit before income tax of S$0.02 million in 1QFY2018, a decrease by S$0.2 million or 85% from S$0.2 million in 1QFY2017, mainly due to no trading sale of equipment in 1QFY2018.

Review of Statements of Financial Position and Cash Flows

Cash and cash equivalents per consolidated statement of cash flow increased by S$1.2 million from S$8.4 million as at 30 June 2017 to S$9.6 million as at 30 September 2017 mainly due to net cash inflows from operating activities and investing activities of S$4.5 million and S$0.1 million respectively. This was offset by the net cash outflow from financing activities of S$3.4 million. Net cash outflow from financing activities of S$3.4 million resulted mainly from the repayment of borrowings of S$10.7 million offset by proceeds from borrowings of S$8.1 million.

As at 30 September 2017, the Group was in a net current liabilities position of S$12.7 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 2017.

Inventories increased by S$1.6 million from S$1.5 million as at 30 June 2017 to S$3.1 million as at 30 September 2017, mainly due to the purchase of trading equipment in 1QFY2018.

Other current assets increased by S$0.4 million from S$1.8 million as at 30 June 2017 to S$2.2 million as at 30 September 2017, 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 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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