Corporate Information
Financial Information
Stock Information
Information Request

Email This Print This Financials

Half Year Financial Statement And Dividend Announcement 2017

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.


Balance Sheet

Review of Performance

  1. Overview

    The Group recorded a revenue of S$16.7 million for HY2017 representing a decrease of 25.7% or S$5.8 million from HY2016 revenue of S$22.5 million.

    The significant decline in Group revenue was due to weaker sales from the Project Sales revenue. Slower demand from overseas customers contributed to the segment's revenue of S$4.8 million in HY2017, which is 62.5% lower than S$12.8 million reported in HY2016.

    Project Management and Maintenance Services showed an improvement of 23.0% from S$9.7 million in HY2016 to S$11.9 million in HY2017, an increase of S$2.2 million. Project Management and Maintenance Services provides a consistent month to month revenue stream.

    Despite a challenging overall economic environment, the Group remains profitable and achieved a net profit before minority interest of S$0.5 million in HY2017.

  2. Revenue

    The Group's revenue decreased 25.7% from S$22.5 million in HY2016 to S$16.7 million in HY2017.

    Project Sales revenue was S$4.8 million decreased by 62.5% or S$8.0 million from the previous period under review (S$12.8 million). The Global slowdown in infrastructure build was the main contributor to the decrease of revenue. Many of our customers have delayed capital infrastructure projects and the overall market environment has been weak.

    Revenue derived from Project Management and Maintenance Services increased by 23.0% or S$2.2 million as this remains as one of the Group's core business which generates a steady recurring income. As capital projects are delayed more emphasis has been made into maintenance and stretching asset life of our customers' infrastructure assets.

  3. Profitability

    The Group's posted a gross profit of S$5.4 million in HY2017, representing a marginal increase of 1.8% from S$5.3 million reported in HY2016.

    Gross profit from Project Sales increased by 39.0% from S$1.0 million in HY2016 to S$1.4 million in HY2017 and this offsets the decline in gross profit of Project Management and Maintenance Services of 7.2% from S$4.3 million in HY2016 to S$4.0 million in HY2017. This is fairly normal as customers are asking for more. As we look to maintain our strong customer relationships we offer to share the difficulties this environment has created.

    Equipment and consumables

    Equipment and consumables decreased by 32.6% from S$17.0 million in HY2016 to S$11.5 million in HY2017. This is in line with our revenue decrease.

    Freight charges

    Freight charges decreased by 69.5% from S$131,000 in HY2016 to S$40,000 in HY2017. The decrease is in line with slowing rate of overseas project completions.

    Commission and consultancy

    Commission and consultancy decreased by 89.1% from S$92,000 in HY2016 to S$10,000 in HY2017. The decrease is in line with the slowing rate of overseas project completions.

    Changes in inventories and contract work-in-progress

    Changes in inventories and contract work-in-progress increased by 146.5% from S$0.1 million in HY2016 to S$0.2 million in HY2017. The increase reflects ours expectation that more projects will be completed in the second half of the financial year.

    Other income

    With more deposits placed with financial institutions, interest income from bank deposits increased from S$1,000 in HY2016 to S$16,000 in HY2017.

    Other (losses)/ gains – net

    Other (losses)/ gains decreased by 164.0% from a gain of S$0.2 million in HY2016 to a loss of S$0.1 million in HY2017. This was a result of higher foreign exchange losses coupled with lower government grants.

    Distribution and marketing expenses

    Distribution and marketing expenses decreased by 4.2% from S$24,000 in HY2016 to S$23,000 in HY2017.

    Administrative expenses

    Administrative expenses increased by 6.8% from S$4.3 million in HY2016 to S$4.6 million in HY2017 mostly due to the increase in manpower, to cater for the project management services, which tends to be more labour intensive, for the second half of the financial year.

    Finance expenses

    Finance expenses increased by 9.4% from S$117,000 in HY2016 to S$128,000 in HY2017. This is due to an increased in borrowings at the beginning of the year.

  4. Statement of Financial Position

    Cash and cash equivalent

    Cash and cash equivalents decreased from S$15.6 million as at 31 December 2016 to S$10.1 million as at 30 June 2017. Please refer to paragraph (e) under the Statement of Cash Flow.

    Trade and other receivables

    Trade and other receivables decreased by S$2.2 million from S$47.7 million in FY2016 to S$45.5 million in HY2017. This is due to collection of outstanding debts from the previous financial year.


    Inventories increased marginally from S$363,000 in FY2016 to S$454,000 in HY2017 due to more stocks kept for future projects.

    Property, plant and equipment

    Property, plant and equipment increased by S$0.5 million from S$1.5 million in FY2016 to S$2.0 million in HY2017. This increase was dueto the purchase of plant and equipment totaling S$0.8 million and offset by depreciation of S$0.3 million.

    Trade and other payables

    Trade and other payables decreased by S$20.6 million from S$28.7 million as at 31 December 2016 to S$8.1 million as at 30 June 2017, due to repayment of trade payables which were due for payment in accordance to agreed payment terms.

    Current and non-current borrowings

    Current and non-current borrowings increased by S$13.1 million from S$15.5 million in FY2016 to S$28.6 million in HY2017. The increase was due to the Group's financing of new projects in the Singapore and Vietnam markets.

  5. Cash Flow

    The Group recorded cash and cash equivalent of S$10.1 million at the end of HY2017. This was a decrease of S$5.5 million from S$15.6 million FY2016.

    The Group's net cash used in operating activities in HY2017 was S$18.4 million. Operating cash flow before working capital changes of S$0.1 million is offset by changes in receivables of S$2.1 million and changes in payables of S$20.6 million.

    The Group's net cash used in investing activities in HY2017 was S$0.5 million for the purchase of vehicles and office and site equipment.

    The Group's net cash provided by financing activities in HY2017 was S$11.3 million due to:-

    • payment of dividends of S$1.0 million;
    • repayment of bank loans of S$2.2 million;
    • additional bank deposits pledged of S$2.2 million;
    • repayment of finance lease of S$36,000;
    • and payment of interest of S$128,000;which was partially offset by proceeds from borrowings of S$15.3 million; and
    • proceeds from issuance of shares of S$1.5 million.


The outstanding order book (contracts signed) as at 30 June 2017 is S$75.1 million. The majority of the Group's outstanding order book is in the Singapore, Vietnam and Myanmar, the Group's key markets.

The Group remains committed to seeking opportunities for continued growth and to building recurring and sustainable revenues in the existing key markets of Singapore, Myanmar and Vietnam.