Financial Statements And Related Announcement - First Quarter Results
Group Income Statement
Statement of Comprehensive Income
Review of Performance
Group revenue decreased by 40.9% to $54.1 million for the quarter ended March 31, 2018 ("1QFY2018"), compared to $91.5 million in 1QFY2017, due mainly to lower contribution from the Group’s Structural Steelworks business.
On a segmental basis, revenue contribution from Structural Steelwork decreased 52.4%, from $67.7 million in 1QFY2017 to $32.2 million in 1QFY2018 due to the substantial completion of Senoko Food Hub and Jewel Changi Airport projects at the end of FY2017. Outram Community Hospital and Evonik methionine plant in Jurong Island were key contributors to Structural Steelwork’s revenue in the quarter under review.
Revenue from Specialist Civil Engineering projects decreased marginally by 3.4% from $19.7 million in 1QFY2017 to $19.1 million in 1QFY2018. The contributions for the review quarter came from Thomson-East Coast Line and the Hong Kong MTR.
The Group’s gross profit decreased from $3.4 million in 1QFY2017 to $0.5 million in 1QFY2018 mainly in line with the drop in revenue. Gross profit margin is depressed by the continued low level of strutting and other activities in Singapore and Hong Kong, resulting in overhead costs not being fully absorbed.
General and administrative expenses increased from $4.1 million in 1QFY2017 to $4.3 million in 1QFY2018, mainly due to loss on disposal of fixed asset during the quarter. Finance costs increased from $1.2 million to $1.7 million, due to higher borrowings, bank charges and interests.
As a result, the Group reported a net loss of $4.8 million in 1QFY2018, compared to a loss of $1.5 million in 1QFY2017. Net asset value per share decreased from 55.91 Singapore cents as at 31 December 2017 to 54.99 Singapore cents as at 31 March 2018.
The Group’s net gearing remained at a healthy level of 0.34 times as at 31 March 2018, compared to 0.30 times as at 31 December 2017.
The Group had submitted bids for upcoming mega public sector infrastructure projects in Singapore this year which includes various major contracts for the North-South Corridor, and are awaiting tender results. The Group is also bidding for various infrastructure projects in Hong Kong and Australia.
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, the Kuala Lumpur – Singapore High Speed Rail and various infrastructure developments for Changi Airport Terminal 5.
The Group is currently in active pursuit of $1.1 billion worth of new infrastructure and commercial projects in Singapore, Hong Kong, Australia and the Middle East. As at 31 March 2018, the Group’s order book stood at $142 million.
The Group continues to invest time and resources in bidding for potential projects in Singapore and regionally. Most of the potential projects, if awarded, are expected to make an impact only from the later part of 2018.