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Condensed interim financial statements For the six months ended 31 December 2021

Financials Archive

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Condensed interim consolidated statement of profit or loss and other comprehensive income

  Group
  6 months ended
  31 December 2021
S$'000
31 December 2020
S$'000
Increase/
(Decrease)
%
Revenue 60,950 52,459 16
Cost of sales (35,280) (33,521) 5
Gross profit 25,670 18,938 36
Other income 1,215 2,652 (54)
Impairment loss on financial assets - net (33) (508) (94)
Other gains/(losses) - net (314) (2,159) (85)
Expenses    
- Administrative (595) (526) 13
- Other operating (14,041) (12,028) 17
- Finance (1,312) (1,651) (21)
Share of profit/(loss) of associated companies (82) 80 NM
Share of (loss)/profit of a joint venture - 34 NM
Profit/(loss) before income tax 10,508 4,832 117
Income tax expense (2,760) (1,343) 106
Total profit/(loss) 7,748 3,489 122
Other comprehensive income/(loss):
Items that may be subsequently reclassified to profit or loss:
Currency translation differences arising from consolidation
- (Losses)/gains (73) 1,534 NM
Total comprehensive income/(loss) 7,675 5,023 53
Profit/(Loss) attributable to:  
Equity holders of the Company 7,759 3,514 121
Non-controlling interest (11) (25) (56)
  7,748 3,489 122
Total comprehensive income/(loss) attributable to:
Equity holders of the Company 7,686 5,052 52
Non-controlling interest (11) (29) (62)
  7,675 5,023 53
Earnings per share attributable to the equity holders of the Company
Basic (SGD in cent) 3.34 1.51 121
Diluted (SGD in cent) 3.34 1.51 121
Denotes: NM - not meaningful

Condensed interim statements of financial positions

  Group
  As at
31 December 2021
S$'000
As at
30 June 2021
S$'000
ASSETS    
Current assets    
Cash and cash equivalents 47,909 45,512
Financial assets at fair value through profit or loss 255 294
Trade and other receivables 50,811 47,081
Tax recoverable 87 121
Inventories 2,077 1,895
Other assets 2,893 1,752
  104,032 96,655
Non-current assets    
Other receivables 266 535
Investment in associated companies 2,821 2,898
Investment in subsidiaries - -
Property, plant and equipment 349,481 346,867
Right-of-use assets 11,269 11,872
Deferred income tax assets 503 503
  364,340 362,675
Total assets 468,372 459,330
     
LIABILITIES    
Current liabilities    
Trade and other payables 30,047 35,378
Current income tax liabilities 3,840 2,998
Borrowings 19,929 19,053
  53,816 57,429
Non-current liabilities    
Trade and other payables 11,954 4,761
Borrowings 96,044 97,981
Deferred income tax liabilities 28,868 28,215
  136,866 130,957
Total liabilities 190,682 188,386
NET ASSETS 277,690 270,944
     
EQUITY    
Capital and reserves attributable to    
equity holders of the Company    
Share capital 87,340 87,340
Other reserves (499) (426)
Retained earnings 190,834 184,004
  277,675 270,918
Non-controlling interest 15 26
Total equity 277,690 270,944

Review on Group's Financial Results

6 Months ended 31 December 2021 (1HFY2022) vs 6 Months ended 31 December 2020 (1HFY2021)

Revenue 1HFY2022
S$'000
1HFY2021
S$'000
Increase/
(Decrease)
%
Heavy Lift and Haulage
- External 59,060 50,718 16%
- Inter-segment 188 422 (55%)
  59,248 51,140 16%
Marine Transportation
- External 1,888 1,349 40%
- Inter-segment 465 570 (18%)
  2,353 1,919 23%
Trading
- External 2 392 (99%)
       
Less: Inter-segment (653) (992) (34%)
  60,950 52,459 16%

Revenue was S$61.0 million in 1HFY2022, an increase of S$8.5 million or 16% from S$52.5 million in 1HFY2021. The increase was mainly attributable to the increase in contributions from Heavy Lift and Haulage as well as Marine Transportation segments.

Heavy Lift and Haulage segment external revenue increased by S$8.4 million or 16% from S$50.7 million in 1HFY2021 to S$59.1 million in 1HFY2022, mainly due to more projects executed in Singapore and Indonesia.

Marine Transportation segment external revenue increased by S$0.6 million or 40% from S$1.3 million in 1HFY2021 to S$1.9 million in 1HFY2022, mainly due to more chartering jobs.

Trading segment revenue decreased by S$0.4 million or 99% as there was sale of equipment and trading parts in 1HFY2021 as compared to sale of only trading parts in 1HFY2022.

Gross Profit was S$25.7 million in 1HFY2022, an increase of S$6.8 million or 36% from S$18.9 million in 1HFY2021, mainly due to higher revenue from Heavy Lift and Haulage as well as Marine Transportation segments. Gross Profit Margin was higher at 42% in 1HFY2022 as compared to 36% in 1HFY2021, mainly due to better performance in Heavy Lift and Haulage as well as Marine Transportation segments.

Other Income was S$1.2 million in 1HFY2022, a decrease of S$1.5 million or 54% from S$2.7 million in 1HFY2021, mainly due to lower government grant income from the Jobs Support Scheme by S$1.2 million and foreign worker levy rebates by S$0.3 million.

Impairment loss on financial assets - net was S$0.03 million in 1HFY2022, a decrease of S$0.5 million or 94% from S$0.5 million in 1HFY2021. This was mainly attributable to a decrease of S$0.6 million in impairment loss on trade receivables from S$0.7 million in 1HFY2021 to S$0.1 million in 1HFY2022. However, this was offset by lower impairment loss on trade receivables written back of S$0.1 million in 1HFY2022 as compared to S$0.2 million in 1HFY2021.

Other Losses - net was S$0.3 million in 1HFY2022, a decrease of S$1.9 million or 85% as compared to S$2.2 million in 1HFY2021. This was mainly attributable to loss on disposal of plant and equipment of S$0.3 million offset by operational exchange gain of S$0.1 million in 1HFY2022, as compared to operational exchange loss of S$2.2 million offset by gain on disposal of plant and equipment of S$0.1 million in 1HFY2021.

Other Operating Expenses were S$14.0 million in 1HFY2022, an increase of S$2.0 million or 17% from S$12.0 million in 1HFY2021 mainly due to higher manpower and related costs.

Administrative Expenses were S$0.6 million in 1HFY2022, an increase of S$0.1 million or 13% from S$0.5 million in 1HFY2021, mainly due to higher professional fees incurred.

Finance Expenses were S$1.3 million in 1HFY2022, a decrease of S$0.4 million or 21% from S$1.7 million in 1HFY2021, mainly due to lower interest rates on bank borrowings and lower bank borrowings during the current period.

Income Tax Expenses was S$2.8 million in 1HFY2022, an increase of S$1.5 million or 106% from S$1.3 million in 1HFY2021. This was mainly due to higher tax provision made for current financial period.

Profit/(Loss) before Income Tax 1HFY2022
S$'000
1HFY2021
S$'000
Increase/
(Decrease)
%
Heavy Lift and Haulage 10,286 5,508 87%
Marine Transportation 217 (601) NM
Trading 5 (75) NM
  10,508 4,832 117%

Profit before Income Tax was S$10.5 million in 1HFY2022, an increase of S$5.7 million or 117% from S$4.8 million in 1HFY2021.

Heavy Lift and Haulage segment profit before income tax was S$10.3 million in 1HFY2022, an increase of S$4.8 million or 87% from S$5.5 million in 1HFY2021. This was mainly due to higher revenue and better performance in 1HFY2022. The Group’s Heavy Lift and Haulage segment in Singapore and other countries was still recovering from the impact of Covid-19 in 1HFY2021.

Marine Transportation segment recorded a profit before income tax of S$0.2 million in 1HFY2022 as compared to a loss before income tax of S$0.6 million in 1HFY2021, mainly due to higher revenue and better performance in 1HFY2022.

Trading segment recorded a profit before income tax of S$0.005 million in 1HFY2022 as compared to a loss before income tax of S$0.1 million in 1HFY2021. This was mainly due to operational exchange gain of S$0.03 million in 1HFY2022, as compared to operational exchange loss of S$0.2 million in 1HFY2021.

Review of Statements of Financial Position and Cash Flows

Cash and cash equivalents per consolidated statement of cash flow increased by S$2.4 million from S$44.8 million as at 30 June 2021 to S$47.2 million as at 31 December 2021 mainly due to net cash inflows from operating activities of S$14.3 million. This was offset by the net cash outflow from financing activities and investing activities of S$11.8 million and S$0.1 million respectively. Net cash outflow from financing activities of S$11.8 million resulted mainly from repayment of bank borrowings and other secured borrowings of S$9.3 million, payment of interest S$1.3 million and payment of dividend to shareholders S$0.9 million.

Total trade and other receivables (current and non-current) increased by S$3.5 million from S$47.6 million as at 30 June 2021 to S$51.1 million as at 31 December 2021, mainly due to higher revenue recorded in the current period.

Inventories increased by S$0.2 million from S$1.9 million as at 30 June 2021 to S$2.1 million as at 31 December 2021, mainly due to increase in purchase of parts.

Other current assets increased by S$1.1 million from S$1.8 million as at 30 June 2021 to S$2.9 million as at 31 December 2021, mainly due to the increase in prepayments for insurance premium.

Total trade and other payables (current and non-current) increased by S$1.9 million from S$40.1 million as at 30 June 2021 to S$42.0 million as at 31 December 2021. The increase was mainly due to increase in purchases of equipment with longer credit terms.

Current income tax liabilities increased by S$0.8 million from S$3.0 million as at 30 June 2021 to S$3.8 million as at 31 December 2021, mainly due to increase in provision of income tax for the current financial period.

Commentary On Current Year Prospects

The operating environment continues to be challenging and uncertain with the Covid-19 pandemic still surging in Singapore and other countries which the Group operates in. The Group’s priority is to ensure that it has adequate liquidity to sustain its business to ride through this Covid-19 pandemic while managing its cashflow, operating costs and business risks.