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Latest Financial Announcement

FINANCIAL STATEMENTS AND DIVIDEND ANNOUNCEMENT FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER 2017

Financials Archive

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Income Statement

Balance Sheet

Review of Performance

Statement of Comprehensive Income Review

Revenue

Revenue increased by $3.7 million or 24.6% from $14.8 million in 1QFY2017 to $18.5 million in 1QFY2018. The increase was mainly due to increase in revenue from customers in the Energy Sector, partly offset by a decrease in revenue from Marine and Trading Sectors. Revenue from Energy Sector had increased by $4.9 million or 49.4% from $10.1 million in 1QFY2017 to $15.0 million in 1QFY2018. Meanwhile, revenue from Marine and Trading Sectors had decreased by $1.4 million or 31.1% from $4.6 million in 1QFY2017 to $3.2 million in 1QFY2018.

Geographically, Singapore market remained the main contributor at 36.1% of the revenue generated in 1QFY2018. The revenue from Singapore market increased by $1.0 million or 17.7% from $5.7 million in 1QFY2017 to $6.7 million in 1QFY2018. Revenue had increased in all markets with the exception of Indonesia, Middle East, Europe and China.

Gross Profit and Gross Profit Margin

Despite the increase in revenue, gross profit margin decreased by 9.2 percentage point from 23.4% in 1QFY2017 to 14.2% in 1QFY2018 due to margin pressure from the market. Gross profit decreased by $0.9 million or 24.2% from $3.5 million in 1QFY2017 to $2.6 million in 1QFY2018.

Financial Income and Expense

Financial income in 1QFY2018 decreased by $7 thousand from interest earned on fixed deposits. Financial expense remained relatively stable at $0.1 million in both 1QFY2017 and 1QFY2018.

Operating Expenses

Distribution costs had decreased by $0.3 million or 19.5% from $1.5 million in 1QFY2017 to $1.2 million in 1QFY2018 mainly from decreases in employee benefits expenses.

Administrative expenses had decreased by $0.2 million or 17.2% from $1.7 million in 1QFY2017 to $1.5 million in 1QFY2018 as per the reason contributing to the distribution costs decline.

Depreciation expense had decreased by $0.1 million or 7.2% from $1.5 million in 1QFY2017 to $1.4 million in 1QFY2018 mainly from lower depreciation on properties.

Other (Charges)/Credits

Other charges had increased by $1.6 million from a credit of $0.5 million in 1QFY2017 to a charge of $1.1 million in 1QFY2018 mainly due to foreign exchange currency loss and provision for slow moving inventories.

Loss Before Income Tax

Loss before tax had increased by $1.8 million or 180.7% from $0.9 million in 1QFY2017 to $2.7 million in 1QFY2018 due to the reasons as aforementioned.

Other Comprehensive Income/ (Loss)

Other comprehensive income had increased by $73 thousand or 187.2% from exchange differences on translating foreign operations.

Statement of Financial Position Review

Non-Current Assets

Non-current assets had increased by $1.6 million or 6.7% from $24.3 million as at 30 September 2017 to $25.9 million as at 31 December 2017 mainly due to the construction costs of warehouse located at 90 Second Lok Yang Road, offset by depreciation charged in the current financial period.

Current Assets

Current assets had decreased by $4.5 million or 3.8% from $119.3 million as at 30 September 2017 to $114.8 million as at 31 December 2017. The decrease was mainly due to decrease in trade and other receivables and cash and cash equivalent. Trade and other receivables decreased by $2.1 million or 7.8% from $27.0 million as at 30 September 2017 to $24.9 million as at 31 December 2017. Meanwhile, cash and cash equivalent had decreased by $2.1 million or 10.1% from $21.3 million as at 30 September 2017 to $19.2 million as at 31 December 2017.

Non-Current Liabilities

Non-current liabilities had decreased by $0.4 million or 11.5% from $2.9 million as at 30 September 2017 to $2.5 million as at 31 December 2017 from repayment of bank borrowings.

Current Liabilities

Current liabilities remained relatively stable at $37.2 million as at 31 December 2017 as compared to $37.1 million as at 30 September 2017.

Trade and other payables had increased by $7.8 million or 149.3% from $5.2 million as at 30 September 2017 to $13.0 million as at 31 December 2017. Other financial liabilities, which consist of short-term borrowings and current portion of long-term borrowings and finance leases, had decreased by $7.2 million or 23.5% from $30.6 million as at 30 September 2017 to $23.4 million as at 31 December 2017.

Equity

Total equity decreased by $2.6 million or 2.53% from $103.6 million as at 30 September 2017 to $101.0 million as at 31 December 2017 mainly from the loss incurred in 1QFY2018.

Statement of Cash Flows Review

Cash Flows From/ (Used in) Operating Activities

Cash from operating activities had increased by $0.7 million from an outflow of $0.4 million in 1QFY2017 to an inflow of $0.3 million in 1QFY2018 mainly from the working capital changes.

Cash Flows Used In Investing Activities

Cash used in investing activities had increased by $3.4 million from $24 thousand in 1QFY2017 to $3.4 million in 1QFY2018 due to capital expenditure for the financial period.

Cash Flows From/ (Used In) Financing Activities

Cash from financing activities had increased by $4.0 million from an outflow of $3.1 million in 1QFY2017 to $0.9 million in 1QFY2018 from the repayment of bank borrowings.

Commentary

Our revenue and margin generation will continue to be impacted by market conditions, which is likely to result in a continuing loss for 1HY2018. We will continue to manage our cost effectively and actively identify new potential markets and suitable opportunities for growth.