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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 29.4% to $68.4 million for the quarter ended September 30, 2017 ("3QFY2017"), compared to $96.9 million in 3Q2016, due mainly to lower contributions from the Group's Structural Steelworks and Mechanical Engineering businesses.

On a segmental basis, revenue contribution from Structural Steelworks decreased 47.1%, from $69.2 million in 3QFY2016 to $36.6 million in 3QFY2017, mainly due to substantial completion of Marina One, Jewel Changi Airport and Senoko Food Hub projects. SGH Community Hospital and the remaining works in Senoko Food Hub and Jewel Changi Airport were the key contributors to Structural Steelwork's revenue in the quarter under review.

Mechanical Engineering revenue decreased from $9.6 million in 3QFY2016 to $0.1 million in 3QFY2017, due to the completion of the fabrication of Heat Recovery Steam Generator ("HRSG") non-pressure parts for two power plants in Qatar and Egypt.

Revenue from Specialist Civil Engineering projects increased by 56.8%, from $16.3 million in 3QFY2016 to $25.6 million in 3QFY2017 due to higher contribution from Woodlands Health Campus and Thomson-East Coast MRT projects.

Lower margins from certain projects as well as the overall lower level of strutting and fabrication activities resulted in overhead costs not being fully absorbed. The Group therefore incurred a gross loss of $1.7 million in 3QFY2017 as compared to gross profit of $4.8 million in 3QFY2016.

General and administrative expenses decreased from $3.4 million in 3Q2016 to $3.1 million in 3Q2017, mainly due to lower professional fees and other general and administrative expenses. Finance costs decreased marginally from $1.34 million to $1.28 million, mainly due to lower borrowings.

The Group reported a net loss of $4.7 million in 3Q2017 compared to a net profit of $0.9 million in 3Q2016.

Net asset value per share decreased from 62.94 Singapore cents as at 31 December 2016 to 60.21 Singapore cents as at 30 September 2017. The Group's net gearing remained at a healthy level of 0.30 times as at 30 September 2017, improved from 0.33 times as at 31 December 2016.

Commentary

Upcoming mega public sector infrastructure projects in Singapore this year, which the Group has bidded for, include various major contracts for the Circle Line 6 and North-South Corridor. The Group is also bidding for various infrastructure projects in Hong Kong and Australia. Public sector demand is expected to be supported by upcoming mega infrastructure projects in the medium term, 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 $1.16 billion worth of new infrastructure and commercial projects in Singapore, Hong Kong, Australia, Malaysia and the Middle East. As at 30 September 2017, the Group's order book stood at $208 million.

The Group expects its overall business outlook to remain challenging in 2017 as it continues to invest time and resources in bidding for potential projects. Most of the potential projects, if awarded, are expected to contribute marginally to FY2017's financial performance and make a significant impact only from 2018.

 
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