Financial Statements Announcement For The Period Ended 30 June 2008

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Group Profit And Loss Account

Balance Sheet

Increase in property, plant and equipment was due mainly to purchase of struts, cranes and progress payments toward land and construction costs for a new fabrication factory in Nusajaya, Johore, Malaysia.

Increase in steel materials, work in progress and trade creditors were in line with the increased activities. Net borrowings increased due to higher working capital requirements.

Review of Performance

2Q FY2008

Both Structural Steelworks and Specialist Civil Engineering performed well, benefiting from the increased infrastructural and construction activities in Singapore and the Middle East. Group revenue recorded a significant improvement of 82.8% to $86.3 million in 2nd quarter ended 30 June 2008 ("2Q FY2008") compared to $47.2 million in 2nd quarter ended 30 June 2007 ("2Q FY2007").

Structural Steelworks grew 2 times, registering an increase in revenue of 103% to $60.3 million (2Q FY2007: $29.7 million). This strong performance was mainly attributable to increased activities from projects such as Orchard Turn, Marina Bay Sands™ Integrated Resort, and the Dubai Metro Rail.

Revenue from Specialist Civil Engineering grew by 48% to $25.9 million in 2Q FY2008, compared to $17.5 million in 2Q FY2007. This was mainly due to the commencement of projects at Marina Bay Sands™ Integrated Resorts.

Accordingly, gross profit climbed 118.6% from $8.4 million in 2Q FY2007 to $18.4 million in 2Q FY2008, attributable to both higher revenue and improved margins. Excluding the write-back of impairment in respect of an investment property in 2Q FY2007, profit after tax increased 2.6 times, from $4.0 million to $10.5 million.

This significantly improved bottom line was achieved despite a $2.2 million increase in general and administrative expenses to $6.1 million, due mainly to increased staff cost ($0.6 million), depreciation ($0.5 million), loss on disposal of fixed assets ($0.3 million) and the fair value of share options granted ($0.7 million), expensed over the vesting period. In line with the increased activities, finance expenses increased by $0.6 million to $1.7 million.

Excluding the write-back of impairment in respect of an investment property, earnings per share improved from 0.35 cent to 0.87 cent. Net asset value per share increased by 1.25 cents to 10.18 cents.

Commentary

With the ongoing development of the integrated resorts and other private developments along Orchard Road as well as major Government initiatives to improve Singapore's transport infrastructure, outlook for the Group looks promising.

In the Middle East, having developed a strong reputation with the Dubai Metro Rail project, the Group is also well positioned to ride the infrastructure boom.

In India, the Group's beachhead, the New Delhi International Airport project augurs well for the Group's plan to expand its footprint in this new market.

Recent contracts from Marina Bay Sands™ Integrated Resort for its South Podium, Casino and Theatre Podium, and ArtScience Museum projects, and Dubai Metro Rail projects have increased the Group's order book from $277 million as at 31 March 2008 to $318 million as at 30 June 2008.

The Board is optimistic that the strong operational performance will continue in FY2008.