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Financial Statements And Related Announcement - Third Quarter Results

Financials Archive

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Group Income Statement

Group Profit And Loss Account

Statement of Comprehensive Income

Statement of Comprehensive Income

Balance Sheet

Balance Sheet

Review of Performance

Group revenue decreased by 50.5% to $33.9 million for the quarter ended September 30, 2018 ("3QFY2018"), compared to $68.4 million in 3QFY2017, due mainly to lower contributions from all business segments.

On a segmental basis, revenue contribution from Structural Steelworks decreased 55.1%, from $36.6 million in 3QFY2017 to $16.4 million in 3QFY2018, mainly due to the substantial completion of Senoko Food Hub and Jewel Changi Airport project at the end of FY2017. JTC Logistic Hub, SGH Community Hospital and Micron fabrication buildings were the key contributors to Structural Steelwork's revenue in the quarter under review.

Revenue from Specialist Civil Engineering projects decreased by 42.3%, from $25.6 million in 3QFY2017 to $14.8 million in 3QFY2018 due to lower contributions from the MRT Thomson Line project as well as the completion of certain HK MTR projects. MRT Thomson Line and HK MTR projects were the key contributors to Specialist Civil Engineering's revenue in the quarter under review.

Revenue from Design and Build projects decreased by 86.1% from $6.1 million in 3QFY2017 to $0.8 million in 3QFY2018 mainly due to the substantial completion of a project for light industrial developments at Kallang Junction in Singapore at the end of FY2017.

In line with the substantial drop in Group's revenue and lower level of business activities, the Group's gross loss widened to $13.4 million in 3QFY2018 as compared to a gross loss of $1.7 million in 3QFY2017. Gross margin remained depressed by the continued low level of strutting and fabrication activities in Singapore and Hong Kong, resulting in overhead costs not being fully absorbed.

Other income increased by 155.3% from $47,000 to $120,000 mainly due to the receipt of a government grant.

General and administrative expenses decreased from $3.1 million in 3QFY2017 to $2.6 million in 3QFY2018, mainly due to lower staff cost and foreign exchange gain recorded in the quarter. Finance costs increased by 80.6% from $1.3 million to $2.3 million, mainly due to higher borrowings, bank charges and interests.

As a result, the Group reported a net loss of $14.4 million in 3QFY2018, compared to a loss of $4.7 million in 3QFY2017. Net asset value per share decreased from 55.91 Singapore cents as at 31 December 2017 to 50.94 Singapore cents as at 30 September 2018.

The Group's net gearing is 0.49 times as at 30 September 2018, compared to 0.30 times as at 31 December 2017.

Commentary

The Group secured four structural steelworks contracts in July 2018 for the fabrication and supply of structural steel kingposts for Singapore General Hospital, a mixed development project in Bidadari as well as the construction of an industrial development in Singapore, with a total value of $23.0 million.

In November 2018, the Group further clinched four contracts worth S$53.4 million in Singapore. These contracts include the main contract works for a four-storey regional headquarters and two-storey production facility project at Tampines Wafer Fab Park. Other contracts include three structural steelwork awards for a nine-storey light industrial and commercial building for JTC Corporation, a 51-storey integrated development located in the Central Business District and a seven-storey Health Campus comprising a community hospital, outpatient clinics and nursing homes in Woodlands respectively.

The Group is also pursuing a number of upcoming mega public sector infrastructure projects in Singapore this year. These include various major contracts for the North-South Corridor and Changi Airport Terminal 5 development works. The Group is currently in active pursuit of $ 1.3 billion worth of new infrastructure and commercial projects in Singapore, Hong Kong, Australia, the Philippines and India. As at 30 September 2018, the Group's order book stood at $280 million.

The Group continues to invest time and resources in bidding for potential projects in Singapore and internationally. Most of the potential projects, if awarded, are expected to make an impact from 2019.

In the medium term, public sector demand in Singapore is expected to be supported by upcoming mega infrastructure projects, such as the Jurong Regional Line, Cross Island Line and various infrastructure developments for Changi Airport Terminal 5.

 
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