Financial Statements

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

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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.