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Financial Statements

Full Year Financial Statement and Dividend Announcement

Financials Archive

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  Group
  FY 2018
S$'000
FY 2017
S$'000
Increase/ (Decrease)
%
Revenue 97,683 114,794 (15)
Cost of sales (72,323) (88,146) (18)
Gross profit 25,360 26,648 (5)
Other income 1,169 1,119 4
Other gains - net 392 2,583 (85)
Expenses      
- Administrative (1,302) (1,439) (10)
- Other operating (20,616) (32,216) (36)
- Finance (3,227) (3,666) (12)
Share of loss of associated companies (432) (451) (4)
Share of profit/(loss) of a joint venture 6 (32) NM
Profit/(Loss) before income tax 1,350 (7,454) NM
Income tax expense (410) (2,429) (83)
Total profit /(loss) 940 (9,883) NM
Other comprehensive income/(loss):      
Items that may be subsequently reclassified to profit or loss:      
Currency translation differences arising from consolidation      
- Gains/(Losses) 1,630 (286) NM
Fair value gains on cash flow hedges 18 6 200
  1,648 (280) NM
Total comprehensive income/(loss) 2,588 (10,163) NM
Profit/(Loss) attributable to:      
Equity holders of the Company 1,195 (9,640) NM
Non-controlling interest (255) (243) 5
  940 (9,883) NM
Total comprehensive income/(loss) attributable to:      
Equity holders of the Company 2,821 (9,894) NM
Non-controlling interest (233) (269) (13)
  2,588 (10,163) NM
Denotes: NM - not meaningful

Note to the Statement of Comprehensive Income

  Group
  FY 2018
S$'000
FY 2017
S$'000
Increase/ (Decrease)
%
Profit /(Loss) after income tax was stated after crediting (charging):
Dividend income 10 10 0
Depreciation of property, plant and equipment (30,333) (31,133) (3)
Currency exchange (loss)/gain - net (397) 425 NM
Gain on disposal of property, plant and equipment 1,183 1,619 (27)
(Loss)/Gain on disposal of a subsidiary (461) 322 NM
Fair value gain on financial assets at fair value through profit or loss 26 63 (59)
Allowance for foreseeable loss on engineering contract written back 542 - NM
Bad debt recovered/(written off) 641 (213) NM
Impairment loss on other receivables (179) (900) (80)
Impairment loss on trade receivables (119) (7,374) (98)
Impairment loss on trade receivables written back 1,489 1,457 2
Impairment loss on club membership written back - 30 (100)
Interest income 143 66 117
Interest expense (3,186) (3,512) (9)
Over/(Under) provision in prior years' current income tax 138 (14) NM
Under provision in prior years' deferred tax (63) (62) 2
Denotes: NM - not meaningful

Balance Sheet

  Group
  As at
30/06/2018
S$'000
As at
30/06/2017
S$'000
ASSETS    
Current assets    
Cash and cash equivalents 8,502 10,879
Financial assets at fair value through profit or loss 488 462
Trade and other receivables 42,937 42,835
Tax recoverable 67 53
Inventories 1,347 1,510
Other current assets 1,199 1,843
Derivative financial instruments 2 -
  54,542 57,582
Non-current assets    
Other receivables - -
Investment in associated companies 2,676 3,121
Investment in a joint venture 2,060 2,074
Investment in subsidiaries - -
Property, plant and equipment 353,239 380,236
Deferred income tax assets 578 491
  358,553 385,922
Total assets 413,095 443,504
     
LIABILITIES    
Current liabilities    
Trade and other payables 29,030 42,370
Current income tax liabilities 1,075 1,708
Borrowings 21,456 29,871
Derivative financial instruments - 12
  51,561 73,961
Non-current liabilities    
Borrowings 85,263 95,305
Derivative financial instruments - 4
Deferred income tax liabilities 26,538 26,646
  111,801 121,955
Total liabilities 163,362 195,916
NET ASSETS 249,733 247,588
     
EQUITY    
Capital and reserves attributable    
to equity holders of the Company    
Share capital 87,340 87,340
Other reserves (2,574) (4,200)
Retained earnings 164,769 163,574
  249,535 246,714
Non-controlling interest 198 874
Total equity 249,733 247,588

Review on Group's Financial Results

Full Year ended 30 June 2018 (FY2018) vs Full Year ended 30 June 2017 (FY2017)

Revenue FY 2018
S$'000
FY 2017
S$'000
Increase/ (Decrease)
%
Heavy Lift and Haulage 91,202 98,255 (7)
Marine Transportation 3,463 3,314 4
Engineering Services 899 10,338 (91)
Trading 2,119 2,887 (27)
  97,683 114,794 (15)

Revenue was S$97.7 million in FY2018, a decrease of S$17.1 million or 15% from S$114.8 million in FY2017. The decrease was mainly attributed to the decrease in contributions from the Heavy Lift and Haulage segment and Engineering Services segments.

Heavy Lift and Haulage segment revenue decreased by S$7.0 million or 7% from S$98.2 million in FY2017 to S$91.2 million in FY2018. There were fewer projects executed in Singapore and the Middle East but offset by an increase in projects from Malaysia and Thailand in FY2018.

Marine Transportation segment revenue increased by S$0.2 million or 4% from S$3.3 million from FY2017 to S$3.5 million in FY2018, mainly due to new projects secured in Singapore and Brunei.

Engineering Services segment revenue decreased by S$9.4 million or 91% from S$10.3 million in FY2017 to S$0.9 million in FY2018, mainly due to the completion of a project in the Middle East and the disposal of a subsidiary in FY2018.

Trading segment revenue decreased by S$0.8 million or 27% from S$2.9 million in FY2017 to S$2.1 million in FY2018, mainly due to fewer equipment sold.

Gross Profit was S$25.4 million in FY2018, a decrease of S$1.2 million or 5% from S$26.6 million in FY2017. Gross Profit Margin was higher at 26.0% in FY2018 as compared to 23.2% in FY2017, mainly due to a write-back of allowance for foreseeable loss on a completed engineering contract and improved performance from the Marine Transportation segment.

Other Gains -net recorded a gain of S$0.4 million in FY2018, a decrease of S$2.2 million or 85% from S$2.6 million in FY2017. This was mainly attributable to gain on disposal of plant and equipment of S$1.2 million that was offset by operational exchange loss of S$0.4 million and loss from the disposal of a subsidiary of S$0.4 million in FY2018, as compared 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.

Other Operating Expenses were S$20.6 million in FY2018, a decrease of S$11.6 million or 36% from S$32.2 million in FY2017. This was mainly due to bad debts recovered and net impairment loss on receivables written back of S$1.8 million in FY2018 as compared to bad debts written off and net impairment loss on receivables of S$7.0 million in FY2017. In addition, there was also reduction in manpower costs and other operating expenses in FY2018.

Finance Expenses were S$3.2 million in FY2018, a decrease of S$0.5 million or 12% from S$3.7 million in FY2017, mainly due to lower interest expenses on reduced finance lease liabilities.

Profit/(Loss) before Income Tax FY 2018
S$'000
FY 2017
S$'000
Increase/ (Decrease)
%
Heavy Lift and Haulage 3,120 1,673 86
Marine Transportation (1,640) (2,930) (44)
Engineering (274) (6,220) (96)
Trading 144 23 526
  1,350 (7,454) (NM)

Loss before Income Tax was S$1.4 million in FY2018 as compared to loss before income tax of S$7.5 million in FY2017.

Heavy Lift and Haulage segment profit before income tax was S$3.1 million in FY2018, an increase of S$1.4 million or 86% from S$1.7 million in FY2017. This was mainly due to bad debts recovered and net impairment loss on receivables written back of S$1.6 million in FY2018 as compared to bad debts written off and net impairment loss on receivables of S$2.9 million in FY2017. This was offset by an exchange loss of S$0.5 million in FY2018 as compared to an exchange gain of S$0.4 million in FY2017.

Marine Transportation segment registered a loss before income tax of S$1.6 million in FY2018, a decrease of S$1.3 million or 44% from S$2.9 million in FY2017, mainly due to higher turnover and an exchange gain of S$0.2 million in FY2018 as compared to an exchange loss of S$0.2 million in FY2017.

Engineering Services segment incurred a loss before income tax of S$0.3 million in FY2018, a decrease of S$5.9 million or 96% from S$6.2 million in FY2017, mainly due to write-back of allowance for foreseeable loss of S$0.5 million for a completed project in FY2018 as compared to an impairment loss on trade receivables of S$4.2 million in FY2017.

Trading segment recorded a profit before income tax of S$0.1 million in FY2018 as compared to S$0.02 million in FY2017 as there was an impairment loss on trade receivables of S$0.2 million in FY2017 and none in FY2018.

Review of Statements of Financial Position and Cash Flows

Cash and cash equivalents per consolidated statement of cash flow increased by S$0.1 million from S$8.4 million as at 30 June 2017 to S$8.5 million as at 30 June 2018 mainly due to net cash inflow from operating activities of S$23.9 million and net cash inflow from investing activities of S$1.2 million. This was offset by net cash outflow from financing activities of S$25.0 million. Net cash outflow from financing activities of S$25.0 million resulted mainly from repayment of borrowings of S$36.0 million, offset by proceeds from borrowings of S$14.1 million.

Inventories decreased by S$0.2 million from S$1.5 million as at 30 June 2017 to S$1.3 million as at 30 June 2018, mainly due to the sale of trading equipment.

Total other current assets decreased by S$0.6 million from S$1.8 million as at 30 June 2017 to S$1.2 million as at 30 June 2018, mainly due to lower deposits paid to suppliers for purchases of equipment.

Total trade and other payables decreased by S$13.4 million from S$42.4 million as at 30 June 2017 to S$29.0 million as at 30 June 2018. 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.

Total borrowings decreased by S$18.5 million from S$125.2 million as at 30 June 2017 to S$106.7 million as at 30 June 2018, mainly due to repayment of bank borrowings.

Current income tax liabilities decreased by S$0.6 million from S$1.7 million as at 30 June 2017 to S$1.1 million as at 30 June 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 onestop integrated heavy lift specialist and service provider to target complex and high value projects to grow the business.

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