Page 7 - cosmosteel

our managem
ent
NOT LONG AFTER OUR IPO, THE GLOBAL
FINANCIAL CRISIS STRUCK WITHOUT
WARNING, RESULTING IN ENORMOUS
RIPPLE EFFECTS ACROSS THE WORLD.
THIS CRISIS IMPARTED VALUABLE
EXPERIENCE AND ALSO TESTED OUR
METTLE AS A COMPANY.
A REVIEW OF THE
FINANCIAL YEAR
For the financial year ended 30
September 2013 (“FY2013”), our
revenue grew by 0.4% to S$155.7
million fromS$155.0million for the
financial year ended30September
2012 (“FY2012”). Our topline was
largely anchored by our Energy
and Marine business segments,
which contributed almost 95% of
our FY2013 revenue. At the same
time, we saw a healthy surge in
sales fromtheEuropean, Indonesia,
Japanese, the Philippines and
Chinamarkets, which collectively
accountedfor39.9%of total revenue
in FY2013, as compared to 8.9%
in FY2012.
However, margin pressures in an
increasingly competitive business
environment during the year saw
ournet profit declineby42.4%from
S$11.1 million in FY2012 to S$6.4
million in FY2013. Thiswas largely
fromour strategy toexpand into the
upstream oil and gas value chain
andparticipation inacompetitively-
priced Energy-segment project
which contributed 21.2%or S$33.3
million to the Group’s revenue
in FY2013. Correspondingly, the
Group’s gross profit for FY2013
fell 12% year-on-year (“y-o-y”)
to S$29.2 million, while gross
profit margin decreased by 2.6
percentage points to 18.8%
in FY2013.
DEVELOPMENTS DURING
THE YEAR
It has always been our Group’s
objective to return value to our
loyal shareholders on a regular
basis. As such, we announced in
May 2013 our decision to adopt a
formaldividendpolicy,whichtargets
to distribute an annual dividend
payout of at least 10% of the net
profit attributable to Shareholders
(subject to a minimum net profit
of at least S$3 million and such
other conditions as set out in the
dividend policy), signalling our
strong and continued confidence
in the future growth potential of
CosmoSteel. For FY2013, we
are pleased to propose a final
tax-exempt dividend of S$0.01
per ordinary share in cash, which
translates to a dividend payout
of 41.5%.