Financial Performance Review

• REVENUE

  Revenue decreased by S$10.3 million or 14.6% to S$60.4 million for FY2024 from S$70.7 million for FY2023.

  • Marine & Offshore Segment revenue decreased by S$4.5 million or 6.9% in FY2024 as compared to FY2023. The decrease was mainly attributable to decreased revenue contribution from the mooring and rigging business.
  • Revenue contribution from Property Segment decreased by S$5.8 million or 84.1% in FY2024 as compared to FY2023. The decrease was mainly due to the absence of sale of a semi-detached landed property. This had also contributed to the decrease in cost of sales for this segment.
• GROSS PROFIT

  The Group’s gross profit of S$22.5 million in FY2024 decreased by S$1.1 million or 4.5% from S$23.6 million in FY2023. The Group’s gross profit margin improved to 37.3% in FY2024 as compared to 33.4% in FY2023.

  • Marine & Offshore Segment contributed gross profit of S$21.7 million to the Group in FY2024 as compared to S$22.5 million in FY2023. The gross profit margin increased to 36.6% in FY2024 from 35.4% in FY2023, mainly due to higher gross profit margin from the mooring and rigging business.
  • Property Segment contributed gross profit of S$0.8 million to the Group in FY2024, mainly from the Group’s property consultancy business.
• OTHER OPERATING INCOME

  Other operating income increased by S$0.2 million or 60.0% to S$0.6 million in FY2024 from S$0.4 million in FY2023. The increase was mainly due to the gain on disposal of asset held for sale.

• DISTRIBUTION EXPENSES

  Distribution expenses decreased by S$0.1 million or 5.6% to S$1.5 million in FY2024 from S$1.6 million in FY2023 due to lower freight costs as a result of easing in supply chain disruptions.

• ADMINISTRATIVE EXPENSES

  Administrative expenses increased by S$0.7 million or 5.3% to S$14.0 million in FY2024 from S$13.3 million in FY2023. The increase was mainly due to (i) increase in manpower costs by S$0.3 million, driven by necessary salary adjustments to enhance hiring competitiveness in the market and (ii) increase in insurance premium by S$0.2 million and (iii) increase in professional fees by S$0.2 million.

• OTHER OPERATING EXPENSES

  Other operating expenses increased by S$0.3 million or 7.9% to S$4.8 million in FY2024 from S$4.5 million in FY2023. The increase was mainly due to (i) increase in depreciation of property, plant and equipment by S$0.2 million and (ii) increase in foreign exchange loss by S$0.1 million.

• FINANCE INCOME

  Finance income, comprising mainly interest income from bank deposits, remained insignificant for FY2024.

• FINANCE COST

  Finance costs increased by S$0.1 million or 4.8% to S$1.3 million in FY2024 from S$1.2 million in FY2023 due to higher interest rates in FY2024 compared to FY2023.

• INCOME TAX EXPENSE

  In FY2024, the Group incurred an income tax expense of S$0.7 million as compared to S$0.6 million in FY2023.

• PROFIT FOR THE YEAR

  Combining the profit before tax of S$2.4 million for the Marine & Offshore Segment, loss before tax of S$0.3 million for the Property Segment and the unallocated head office expenses of S$0.5 million, the Group’s profit before tax was S$1.6 million in FY2024 as compared to a profit before tax of S$3.5 million in FY2023. After accounting for income tax expense of S$0.7 million in FY2024, the Group’s profit for FY2024 was S$0.9 million as compared to a profit of S$2.8 million in FY2023.

Financial Position Review

• NON-CURRENT ASSETS

  Non-current assets increased by S$0.4 million to S$15.1 million as at 30 June 2024 from S$14.7 million as at 30 June 2023. The increase was mainly due to the following:

  • Property, plant and equipment increased by S$0.2 million, due to the acquisition of plant and equipment of S$2.2 million partially offset by depreciation of property, plant and equipment of S$2.0 million; and
  • Other investment increased by S$0.4 million due to purchase of keyman insurance.

  The increase stated above was partially offset by a decrease in trade and other receivables by S$0.2 million due to monthly repayments from the global settlement of a legal suit.

• CURRENT ASSETS

  Current assets decreased by S$2.1 million from S$42.4 million as at 30 June 2023 to S$40.3 million as at 30 June 2024. The decrease was mainly due to the following:

  • Trade and other receivables decreased by S$0.5 million, which is in line with the decrease in Marine & Offshore Segment revenue in FY2024;
  • Assets held for sale decreased by S$0.6 million as at 30 June 2024 following the disposal of a leasehold property owned by TEHO Water & Envirotec Pte Ltd in FY2024; and
  • Cash and cash equivalents decreased by S$1.5 million from S$8.1 million as at 30 June 2023 to S$6.6 million as at 30 June 2024. Please refer to the “Cash Flows Review” section for details.

  The decrease stated above was partially offset by the increase in inventory by S$0.5 million from S$22.9 million as at 30 June 2023 to S$23.4 million as at 30 June 2024. This increase was attributed to proactive measures taken in anticipation of extended lead times for the supply of inventory within the Marine & Offshore Segment.

• NON-CURRENT LIABILITIES

  Non-current liabilities decreased by S$1.4 million to S$7.5 million as at 30 June 2024 from S$8.9 million as at 30 June 2023. The decrease was mainly due to the following:

  • Loans and borrowings decreased by S$1.3 million as a result of repayment of term loans and lease liabilities; and
  • Deferred grant income decreased by $0.1 million arising from the amortisation of grant received over the useful life of the process improvement projects for the mooring and rigging business.
• CURRENT LIABILITIES

  Current liabilities decreased by S$0.8 million to S$24.3 million as at 30 June 2024 from S$25.1 million as at 30 June 2023. The decrease was mainly due to the following:

  • Current portion of loans and borrowings decreased by S$0.9 million, as a result of repayment of term loans and lease liabilities;
  • Trade and other payables decreased by S$0.5 million due to slowdown in purchase of goods in June 2024 in order to maintain inventories at the optimum level; and
  • Current tax liabilities decreased by S$0.2 million due to lower profit for the year.

  The decrease stated above was partially offset by the increase in contract liabilities by S$0.8 million attributed from higher advance payments from customers.

• SHAREHOLDERS' EQUITY

  As a result of the above, total equity of the Group increased by S$0.5 million to S$23.6 million as at 30 June 2024 from S$23.1 million as at 30 June 2023.

Cash Flows Review

The Group’s net cash flows generated from operating activities was S$4.0 million in FY2024 compared to S$12.5 million in FY2023. The decrease was mainly due to higher inventory levels in Marine & Offshore Segment’s business and absence of sale proceeds from development properties.

Net cash flows used in investing activities amounted to S$0.1 million in FY2024 was mainly due to (i) capital expenditure on the acquisition of property, plant and equipment of S$0.5 million and (ii) purchase of keyman insurance of S$0.4 million; partially offset by proceeds from disposal of asset held for sale of S$0.8 million.

Net cash flows used in financing activities amounted to S$5.4 million in FY2024 was mainly due to dividend payment of S$0.2 million, interest payment of S$1.3 million, repayment of loans and borrowings of S$22.1 million, and payment of lease liabilities of S$1.0 million; partially offset by proceeds from the drawdown of loans and borrowings of S$19.2 million.

As at 30 June 2024, the Group has cash and cash equivalents of S$6.6 million as compared to S$8.1 million as at 30 June 2023.