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Latest Financial Announcement
CONDENSED FINANCIAL STATEMENTS FOR THE SECOND HALF YEAR AND FULL YEAR ENDED 30 SEPTEMBER 2023
Financials Archive
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Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income
Condensed Statements of Financial Position
Review of Performance
Statement of Comprehensive Income Review
Revenue
Revenue had increased by $5.4 million or 20.8% from $26.0 million in 2HY2022 to $31.4 million in 2HY2023. The increase was mainly from the increase in revenue in Energy and Other Sectors. Revenue from Energy Sector had increased by $12.0 million or 96.7% from $12.5 million in 2HY2022 to $24.5 million in 2HY2023. Revenue from Other Sector had increased by $0.7 million or 163.3% from $0.4 million in 2HY2022 to $1.1 million in 2HY2023. This was partially offset by decrease in revenue from Marine and Trading Sectors. Revenue from Marine Sector had decreased by $1.0 million or 59.9% from $1.7 million in 2HY2022 to $0.7 million in 2HY2023. Revenue from Trading Sector had decreased by $6.3 million or 55.0% from $11.4 million in 2HY2022 to $5.1 million in 2HY2023. Year on year, revenue had increased by $37.3 million or 81.1% from $46.1 million in FY2022 to $83.4 million in FY2023 from the revenue in Energy, Marine and Other Sectors. Revenue from Energy Sector had increased by $40.7 million or 155.7% from $26.1 million in FY2022 to $66.8 million in FY2023. Revenue from Marine Sector had increased by $0.4 million or 13.9% from $2.5 million in FY2022 to $2.9 million in FY2023. Likewise, revenue from Other Sector had increased by $0.8 million or 82.1% from $1.0 million in FY2022 to $1.8 million in FY2023. The increase was partially offset by the decrease in revenue from Trading Sector. Revenue from Trading Sector had decreased by $4.5 million or 27.2% from $16.5 million in FY2022 to $12.0 million in FY2023.
Geographically, Singapore market was the main contributor at 71.6% of the revenue generated in FY2023. The revenue from Singapore market had increased by $35.2 million or 143.0% from $24.6 million in FY2022 to $59.8 million in FY2023.
Gross Profit and Gross Profit Margin
Gross profit margin had decreased by 10.3 percentage point from 25.5% in 2HY2022 to 15.2% in 2HY2023. Gross profit decreased by $1.8 million or 28.1% from $6.6 million in 2HY2022 to $4.8 million in 2HY2023. In tandem to the increase in revenue, gross profit had increased by $2.2 million or 19.4% from $11.0 million in FY2022 to $13.2 million in FY2023 while gross profit margin had decreased by 8.2 percentage points from 24.0% in FY2022 to 15.8% in FY2023.
Interest Income and Finance Costs
Interest income had increased by $0.1 million from $4 thousand in 2HY2022 to $0.1 million in 2HY2023 mainly from the interest earned on the fixed deposit account. Year on year, interest income had increased by $0.2 million from $4 thousand in FY2022 to $0.2 million in FY2023 as per the reason contributing to 2HY2023 increase.
Finance costs had increased by $0.3 million or 167.6% from $0.2 million in 2HY2022 to $0.5 million in 2HY2023 mainly from the increase in bank borrowings and higher interest rates. Year on year, finance costs had increased by $0.6 million or 162.7% from $0.3 million in FY2022 to $0.9 million in FY2023 as per the reason contributing to 2HY2023 increase.
Operating Expenses
Marketing and distribution costs had decreased by $0.1 million or 5.8% from $1.8 million in 2HY2022 to $1.7 million in 2HY2023 mainly from lower employee benefits expense. Year on year, marketing and distribution costs had decreased by $0.5 million or 12.6% from $3.8 million in FY2022 to $3.3 million in FY2023 as per the reason contributing to 2HY2023 decrease.
Administrative expenses had increased by $0.3 million or 13.3% from $2.2 million in 2HY2022 to $2.5 million in 2HY2023 mainly from higher employee benefits expenses and increase in legal and professional fees. Year on year, administrative expenses had increased by $0.5 million or 12.8% from $4.1 million in FY2022 to $4.6 million in FY2023 as per the reason contributing to 2HY2023 increase.
Depreciation expense of property, plant and equipment had increased by $0.3 million or 24.0% from $1.1 million in 2HY2022 to $1.4 million in 2HY2023 mainly from increase in depreciation of leasehold properties. Year on year, depreciation expense of property, plant and equipment had increased by $0.5 million or 18.3% from $2.3 million in FY2022 to $2.8 million in FY2023 as per the reason contributing to 2HY2023 increase.
Depreciation expense of right-of-use assets had decreased by $0.6 million or 79.7% from $0.7 million in 2HY2022 to $0.1 million in 2HY2023 as the lease at 21A Neythal Road was expired on 30 November 2022. Year on year, depreciation expense of right-of-use assets had decreased by $0.9 million or 66.6% from $1.4 million in FY2022 to $0.5 million in FY2023 as per the reason contributing to 2HY2023 decrease.
Other Gains/ (Losses) (Net)
Other losses had decreased by $2.2 million or 441.2% from other losses of $0.5 million in 2HY2022 to other gains of $1.7 million in 2HY2023 mainly from the reversal of allowance for impairment on inventories and lower allowance for impairment on trade receivables in 2HY2023. Year on year, other gains had decreased by $1.6 million or 49.6% from $3.2 million in FY2022 to $1.6 million in FY2023 mainly due to foreign exchange losses in FY2023.
Profit before Income Tax
Profit before income tax had increased by $0.2 million or 188.3% from $0.1 million in 2HY2022 to $0.3 million in 2HY2023. Year on year, profit before income tax had increased by $0.7 million or 29.5% from $2.4 million in FY2022 to $3.1 million in FY2023 due to the aforementioned reasons.
Other Comprehensive Income
Other comprehensive income had decreased by $0.2 million or 33.2% from $0.7 million in 2HY2022 to $0.5 million in 2HY2023 mainly from the exchange differences on translating foreign operations. Year on year, other comprehensive loss had decreased by $1.5 million or 380.9% from a loss of $0.4 million in FY2022 to an income of $1.1 million in FY2023 mainly from the exchange differences on translating foreign operations and surplus on revaluation of the properties.
Statement of Financial Position Review
Non-Current Assets
Non-current assets had increased by $0.9 million or 3.9% from $25.0 million as at 30 September 2022 to $25.9 million as at 30 September 2023 mainly from the revaluations of the leasehold properties, the purchase of plant and equipment and non-current portion of trade and other receivables, partly offset by the depreciation charged in the current financial year.
Current Assets
Current assets had increased by $3.2 million or 4.3% from $72.8 million as at 30 September 2022 to $76.0 million as at 30 September 2023. The increase was mainly due to increase in trade and other receivables, partly offset by decrease in inventories and cash and cash equivalents. Trade and other receivables had increased by $13.1 million or 76.4% from $17.2 million as at 30 September 2022 to $30.3 million as at 30 September 2023. On the other hand, inventories had decreased by $4.6 million or 14.9% from $30.2 million as at 30 September 2022 to $25.6 million as at 30 September 2023. Cash and cash equivalents had decreased by $6.0 million or 23.9% from $24.9 million as at 30 September 2022 to $18.9 million as at 30 September 2023.
Non-Current Liabilities
Non-current liabilities had decreased by $1.6 million or 18.5% from $8.8 million as at 30 September 2022 to $7.2 million as at 30 September 2023 mainly from the repayment of loan and borrowings.
Current Liabilities
Current liabilities had increased by $3.2 million or 28.9% from $11.1 million as at 30 September 2022 to $14.3 million as at 30 September 2023. The increase was mainly due to increase in loans and borrowings. Loan and borrowings had increased by $3.5 million or 74.8% from $4.8 million as at 30 September 2022 to $8.3 million as at 30 September 2023.
Equity
Total equity had increased by $2.5 million or 3.3% from $77.9 million as at 30 September 2022 to $80.4 million as at 30 September 2023 mainly from the profit generated in FY2023 and surplus on revaluation of the properties, partly offset by the dividend paid.
Statement of Cash Flows Review
Cash Flows From/ (Used in) Operating Activities
Cash from operating activities had decreased by $1.0 million from $5.8 million in 2HY2022 to $4.8 million in 2HY2023 mainly from the working capital changes. Year on year, cash from operating activities had decreased by $7.7 million from an inflow of $4.1 million in FY2022 to an outflow of $3.6 million in FY2023 as per the reason contributing to 2HY2023 increase.
Cash Flows Used in Investing Activities
Cash used in investing activities had decreased by $0.2 million from $1.3 million in 2HY2022 to $1.1 million in 2HY2023 mainly due to less capital expenditure, proceeds from disposal of property, plant and equipment and interest income, partly offset by cash restricted in use in 2HY2023. Year on year, cash used in investing activities had decreased by $1.1 million from $2.9 million in FY2022 to $1.8 million in FY2023 as per the reason contributing to 2HY2023 decrease.
Cash Flows Used in Financing Activities
Cash used in financing activities had decreased by $3.9 million from $4.6 million in 2HY2022 to $8.5 million in 2HY2023 mainly from mainly from higher repayment of loan and borrowings, no purchase of treasury shares and no payment of dividend in 2HY2023. Year on year, cash used in financing activities had decreased by $7.9 million from $8.9 million in FY2022 to $1.0 million in FY2023 mainly from increase in loan and borrowings, no purchase of treasury shares and less payment of dividend and lease liabilities.
Commentary
The Group will continue to work on maintaining our revenue generation and identifying suitable opportunities for growth although the Group expects to face significant challenges due, inter alia, to the high interest rate environment, inflationary pressures, and ongoing global geopolitical and economic uncertainties.
As announced by the Company on SGXNet on 23 October 2023, the Shareholders have approved the proposed acquisition of a warehouse in Malaysia. The acquisition is expected to be completed in February 2024 and the Company will be commencing the relocation of part of its inventories to the warehouse in Malaysia in 3QFY2024.