Half Year Results Financial Statement And Related Announcement
Financials Archive
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Consolidated Income Statement
Statement of Consolidated Comprehensive Income
Balance Sheet
Financial Performance Review
Revenue
Revenue for the half-year ended 31 December 2011 ("HY2012") had increased by $0.7 million or 3.9% to $17.5 million as compared to $16.8 million in HY2011. The increase was due mainly to increased sales from the marine sector in Singapore. Revenue from Singapore accounted for over 80% of the total revenue in HY2012.
Gross profit
The Group performed relatively well in HY2012 despite the volatility in the global markets. The overall gross profit in HY2012 had increased by $0.9 million or 19.4% to $5.6 million in HY2012 from $4.7 miilion in HY2011. The marine sector's gross profit showed the biggest increase as a result of an increase in sales orders. The improvement in gross profit was also due to higher selling prices and lower purchasing costs as a result of the weakening USD/SGD exchange rate over the last one year. As a result, the Group's gross profit margin increased by 4.2 percentage points from 27.9% in HY2011 to 32.1% in HY2012.
Other items of income
In HY2012, the other items of income had increased by $0.2 million as compared to HY2011 due mainly to the disposal gain of plant and equipment in HY2012.
Other items of expense
Other items of expenses increased by $0.4 million or 11.6%, from $3.4 million in HY2011 to S$3.8 million in HY2012 were due mainly to increases in administrative expenses and other operating expenses.
Administrative expenses had increased by $0.4 million due mainly to increased headcount, salaries and related expenses.
Distribution costs, which related to freight & handling charges, travelling expenses, trade show & exhibition expenses and advertisement expenses remained largely unchanged at $0.3 million in HY2012.
Other operating expenses had also increased by $0.2 million as a result of an increase in property tax, land rent, expenses relating to the upkeep of properties, rental of office, staff training and welfare.
The above increase was partially offset by the decrease in finance costs of $0.1 million due to lower interest rates in HY2012 as compared to HY2011 and decrease in bank loans during the period.
Profit before tax from continuing operations
Profit before tax from continuing operations increased by $0.8 million or 56.0% to $2.1 million in HY2012 from $1.4 million in HY2011 of which $1.0 million was due mainly to the higher gross profit margin and gain on disposal of plant and equipment of $0.2 million and partially offset by a $0.4 million increase in operating expenses as elaborated above.
Balance Sheet Review
Non-current assets
Property, plant and equipment decreased by $0.2 million as at 31 December 2011 as a result of the depreciation charged during the period under review, partially offset by the acquisition of property plant and equipment amounting to $0.2 million during the period.
Current assets
The increase in current assets of $0.6 million was attributable mainly to the increase in inventory by $1.5 million as a result of higher sales orders and partially offset by the decrease in trade and other receivables of $0.6 million, decrease in other assets of $0.1 million and decrease in cash and cash equivalents of $0.2 million.
Non-current liabilities
The decrease in non- current liabilities of $0.3 million was due to the repayment of term loans.
Current liabilities
Current liabilities decreased by $0.1 million due mainly to the decrease in other financial liabilities of $1.1 million which is partially offset by the increase of $0.8 million in trade and other payables and an increase in income tax payable of $0.2 million.
Shareholders' equity
The increase of $0.8 million in Shareholders' equity was due mainly to the profit attributable to owners of the parent net of tax of $1.7 million during the period under review, partially offset by a dividend payment of $0.9 million in HY2012.
Cash Flow Statement Review
Cash flows from operating activities
Net cash generated from operating activities was $2.2 million due to the operating profit before working capital changes of $2.5 million less income tax paid of $0.3 million. Net cash flow in relation to working capital changes was relatively insignificant for the period under review as the decrease in trade and other receivables of $0.6 million, decrease in other assets of $0.1 million and an increase in trade and other payables of $0.8 million was largely offset by the increase in inventories amounting to $1.5 million.
Cash flows from investing activities
Net cash generated from investing activities was $21,000, as the purchase of plant and equipment of $165,000 was offset by the proceeds from the disposal of plant and equipment and interest received amounting to $175,000 and $11,000 respectively.
Cash flows from financing activities
Net cash used in financing activities was $2.4 million, due to dividends paid to equity shareholders, partial repayment of term loans and interest paid.
As a result of the above, there was a net decrease in cash and cash equivalents of $0.2 million for HY2012. The cash and cash equivalents as at 31 December 2011 stood at $7.9 million.
Commentary
The Group expects the economic outlook to be challenging due to uncertainties over the European Union financial crisis and slowdown in the growth of the global economy. The marine sector is still consolidating, though the offshore O&G sector appears to be on the recovery track. The business will remain highly competitive with committed costs and overheads. The Group will continue to consolidate its position so as to maintain and improve on its market share for the ropes and related products and businesses.
Despite the uncertain outlook, more direct marketing efforts will be channelled by our business development team to promote our existing range of products and services to our valued existing and new customers, including working closely with all our overseas distribution points.