Financials

Full Year Results Financial Statement And Related Announcement For The Year Ended 31 March 2012

Financials Archive

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PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

1(a)(i) Consolidated statement of comprehensive income, together with a comparative statement for the corresponding period of the immediately preceding financial year

Profit & Loss FY2010
Note:
The Group changed its financial year end from 31 December to 31 March with effect from 11 October 2010. The current financial year covers a period of 12 months from 1 April 2011 to 31 March 2012 ("FY2012"), whereas the previous financial year covered a period of 15 months from 1 January 2010 to 31 March 2011 ("FY2011").


Consolidated Statement of Comprehensive Income

Consolidated Statement of Comprehensive Income

1(a)(ii) Notes to the consolidated statement of comprehensive income

The following items have been charged or (credited) in arriving at profit for the year:

Balance Sheet FY2010


1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year

1(b)(ii) Aggregate amount of group's borrowings and debt securities



Details of any collateral

  1. As at 31 March 2012, term loans payable of about S$16.0 million (31.3.2011: S$12.3 million) was secured by fixed charges over certain property, plant and equipment with a carrying amount of about S$28.1 million and corporate guarantees executed by the Company.

  2. The remaining secured borrowings of S$15.2 million (31.3.2011: S$25.3 million) relate to finance lease liabilities which are secured by one or more of the followings:

    a) Legal mortgage over the Group's leasehold property which has been fully depreciated.
    b) Certain plant & machinery of the Group with carrying value of S$30.9 million
    c) Corporate guarantees executed by the Company and a subsidiary


1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year


1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year

There were no changes to the Company's share capital during the period.

1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year.

2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)

The figures were not audited or reviewed by the Company's independent auditors.

3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter)

Not applicable.

4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied

Except as disclosed in section 5 below, the Group has adopted the same accounting policies and methods
of computation in the financial statements for the current period compared with those of the audited
financial statements for the year ended 31 March 2011.

5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change

During the financial period, the Group adopted the new and revised Singapore Financial Reporting
Standards ("FRS") and Interpretations of FRS ("INT FRS") that are effective for annual periods beginning
on or after 1 April 2011. The adoption of the new and revised FRS and INT FRS did not result in any
substantial change to the Group's accounting policies or any significant impact on the financial statements.

6. Earnings/(losses) per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends

Basic earnings per share and fully diluted earnings per share were computed based on net profit attributable to shareholders of S$2,732,459 (FY2011: S$4,971,818) and weighted average number of shares of 248,000,060 (FY2011: 248,000,060) respectively.

7. Net asset value (for the issuer and group) per ordinary share based on the number of issued shares excluding treasury shares of the issuer at the end of the (a) current financial period reported on and (b) immediately preceding financial year

As at 31 March 2012, the number of ordinary shares issued is 248,000,060 (31 March 2011: 248,000,060).

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

The Company made a change of financial year from 31 December to 31 March in the previous financial year, which covered a 15-month period ("FY2011") whereas the current financial year covers a 12-month period ("FY2012"). As such, the percentage of decrease in revenue and gross profit compared with the previous year is due largely to the different length of the corresponding period.


Review of Group Performance

Revenue

Revenue decreased by approximately S$6.7 million or 19.9% from approximately S$33.8 million for FY2011 to approximately S$27.1 million for FY2012. The decrease was mainly attributed to the additional 3-months period in the prior financial year.

Leasing business

Even though the revenue for FY2012 decreased when compared to the previous financial year, the current financial year's average monthly leasing revenue is higher than that of the previous financial year. This is mainly due to a slight improvement in rental rates in the second half of the current financial year. Overall, the utilisation rate of our leasing equipment has also improved during the second half of the current financial year.

Trading business

There was no trading income in both financial year ended 31 March 2012 and financial year ended 31 March 2011 due to a lack of demand in the market.

Cost of sales and gross profit

FY2011 to approximately S$18.5 million for FY2012. This is mainly due to the shorter period in the current financial year compared to prior year resulting in lower depreciation expenses of S$1.4 million, lower payroll related expenses of S$2.4 million, lower crane rental expenses of S$0.3 million and lower upkeep and maintenance expenses of S$0.3 million. However, the fuel costs are higher by S$0.1 million due to an increase in the price of fuel in FY2012.

Gross profit decreased by S$2.4 million or 22.1% from S$11.0 million (representing a gross margin of 32.5%) for FY2011 to S$8.6 million (representing a gross margin of 31.7%) for FY2012. The decrease in gross profit was mainly due to the shorter period in the current financial year as compared to the prior year as explained above.

Other income

Other income increased by approximately S$2.0 million or 155.9% from approximately S$1.3 million for FY2011 to approximately S$3.3 million for FY2012. The increase was mainly due to the increase in net gain in disposal of property, plant and equipment of S$2.2 million. This was partly offset by a decrease in sundry income of about S$0.1 million and a decrease in rental income of about S$0.1 million.

Distribution expenses

Distribution expenses increased by approximately S$31,000 or 12.9% from approximately S$240,000 for FY2011 to approximately S$271,000 for FY2012, mainly due to an increase in commission expenses of about S$36,000.

Administrative expenses

Generally, the administrative expenses for FY2012 are lower as it covers a 12-month period, whereas FY2011 covered a 15-month period.

Administrative expenses decreased by approximately S$0.8 million or 14.3% from S$5.8 million for FY2011 to S$5.0 million for FY2012. The decrease is mainly due to a decrease in directors' remuneration of S$0.3 million, salary related costs of approximately S$0.5 million, professional fees of S$0.2 million and parking fees of about S$0.1 million. This is partially offset by an increase in impairment loss recorded by a foreign subsidiary of S$0.3 million.

Finance income

Finance income decreased from S$1.9 million for FY2011 to S$1,000 for FY2012. This is mainly due to the absence of a net positive change in fair value of financial derivatives of approximately S$1.6 million and the absence of a reversal of impairment loss on receivables of S$0.3 million in FY2012.

Finance expenses

Finance expenses decreased by approximately S$0.5 million or 15.7% from S$3.5 million for FY2011 to S$3.0 million for FY2012 mainly due to decrease in interest expenses about S$0.5 million and decrease in bad debt written off of about S$0.2 million. This is partly offset by an increase in net impairment loss of our trade receivables of about S$0.2 million.

Income tax

We recorded an income tax expense of S$0.8 million for FY2012 compared with an income tax credit of S$52,000 in FY2011. This is mainly due to the reversal of over-provision of deferred tax liabilities of $0.9 million made in the prior financial year, which is absent in the current financial year.

Profit for the year

Profit for the year decreased by S$1.9 million or 41.4% from S$4.6 million for FY2011 to S$2.7 million for FY2012 due to the reasons explained above.


Review of Financial Position


Non-Current Assets

Our non-current assets amounted to S$90.2 million or 82.6% of our total assets of approximately S$109.2 million as at 31 March 2012. The decrease in the non-current assets of approximately S$1.2 million or 1.3% was mainly due to a decrease in other long term assets of S$0.5 million and a decrease in property, plant and equipment of S$0.8 million. This is partly offset by an increase in deferred tax assets of S$0.1 million during the year.

Current Assets

As at 31 March 2012, our current assets amounted to S$19.0 million or 17.4% of our total assets of approximately S$109.5 million.

The increase in the current assets of approximately S$4.1 million or 27.7% was mainly due to an increase in cash and cash equivalent of S$0.8 million, increase in asset held for sale of S$0.7 million as well as an increase in trade and other receivables of approximately S$2.6 million, contributed substantially by a foreign subsidiary.

Non-Current Liabilities

As at 31 March 2012, our non-current liabilities amounted to S$29.4 million or 57.5% of our total liabilities of approximately S$51.1 million. The increase in non-current liabilities of approximately S$0.6 million or 2.1% was mainly due to an increase in long term loan from a director to an overseas subsidiary of approximately S$0.6 million and an increase in deferred income tax liability of S$1.0 million. This was partly offset by a decrease in loans and borrowings of S$0.9 million during the year.

Current Liabilities

As at 31 March 2012, our current liabilities amounted to S$21.7 million or 42.5% of our total liabilities of approximately S$51.1 million. The decrease in current liabilities of approximately S$0.7 million was mainly due to a decrease in loans and borrowings of S$0.7 million.

Our net current liabilities as at 31 March 2012 decreased by 64.6% as compared to 31 March 2011 due to an increase in other receivables, cash and cash equivalents, as well as lower loans and borrowings in current liabilities as a result of our refinancing efforts.


Review of Cash flow Statement


The Group's net cash from operating activities for FY2012 decreased by S$8.0 million as compared to FY2011.

The Group's net cash used for investing activities in the 12 months ended 31 March 2012 decreased by S$13.7 million as compared to the 15 months ended 31 March 2011. This was mainly due to decrease in cashflow used for purchase of property, plant and equipment of about S$12.6 million during the year, which is partly offset by increase in proceeds of disposal of property, plant and equipment of about S$1.3 million.

The Group's net cash used for financing activities in the 12 months ended 31 March 2012 decreased by S$0.2 million compared to that for the 15 months ended 31 March 2011. This was mainly due to a decrease in the proceeds from borrowings of about S$6.8 million, decrease in payments of finance lease liabilities of S$6.4 million and a decrease in interest paid of S$0.6 million. This was offset by an increase in repayment of borrowings of S$11.2 million, an increase in non-trade amounts due to related parties of S$0.7 million and the absence of proceeds from non-controlling interests of S$1.5 million which was recorded in the comparative year.

9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results

No forecast or prospect statement has been previously disclosed to shareholders.

10. A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months

The business environment in our industry is expected to remain competitive in the next 12 months due to the continued over supply of cranes. The extent of any improvement in rental rates remains to be uncertain over the next 6 or 12 months while the operating environment will also be challenging due to rising costs. The trading business will likely continue to be weak in the next 12 months.

On our overseas investment, the Group will remain cautious in exploring any new growth opportunities in the region. With the robust growth in certain sectors of Malaysia, the Group expects its business activities in Malaysia to increase in the next 12 months.

11. Dividend
(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on?

The Board of Directors is pleased to recommend the following dividend in respect of the financial year ended 31 March 2012 for approval by shareholders at the next Annual General Meeting to be convened:

Name of dividend First and Final (One-tier tax exempt)
Dividend Type Cash
Dividend Amount per Share 0.5 Singapore cents per ordinary share

(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial year?

Nil.

(c) Date payable

The date payable for the dividend will be announced at a later date.

(d) Books closure date


Notice of books closure for determining shareholders' entitlement of the proposed dividend will be announced at a later date.

12. If no dividend has been declared/recommended, a statement to that effect

Not applicable.

13. If the group has obtained a general mandate from shareholders for IPTs, the aggregate value of such transactions as required under Rule 920(1)(a)(ii). If no IPT mandate has been obtained, a statement to that effect.

The Company does not have a general mandate from shareholders for interested person transactions.


PART II ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT

(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

14. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year

(a) Analysis by Business Segments

Not applicable

(b) Analysis by Geographical segments

The Group previously provided analysis by geographical segments, namely Singapore, China and India in the previous financial year. In the current financial year, the results of China and India have been included with the results of Singapore as these segments are no longer significant segments. Therefore, no analysis by geographical segments is provided for the current financial year.

The prior year figures are presented for reference below:

15. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments

In view of the challenging environment and operational difficulties in China and India, the Group does not expect the segments to have a significant contribution in the near future.

16. A breakdown of sales


17. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year



The first and final tax exempt (one-tier) ordinary dividend for the year ended 31 March 2012 of 0.5 Singapore cents per ordinary share is subject to the approval of ordinary shareholders at the forthcoming Annual General Meeting and the dividend amounts are based on the number of issued ordinary shares as at 31 March 2012.

18. Interested party transaction

Nil.

19. Disclosure of person occupying a managerial position in the issuer or any of its principal subsidiaries who is a relative of a director or chief executive officer or substantial shareholder of the issuer pursuant to Rule 704(10) in the format below. If there are no such persons, the issuer must make an appropriate negative statement.



BY ORDER OF THE BOARD

Ong Boon Tat
Executive Director
25 May 2012



This announcement has been prepared by the Company and its contents have been reviewed by the Company's sponsor, CIMB Bank Berhad, Singapore Branch ("Sponsor"), for compliance with the relevant rules of the Singapore Exchange Securities Trading Limited (the "SGX-ST"), this being the SGXST Listing Manual Section B: Rules of Catalist. The Sponsor has not independently verified the contents of this announcement.

The announcement has not been examined or approved by the SGX-ST. The Sponsor and the SGX-ST assume no responsibility for the contents of this announcement including the correctness of any of the statements or opinions made or reports contained in this announcement.

The contact person for the Sponsor is Mr. Benjamin Choy, Director, Corporate Finance. The contact particulars are 50 Raffles Place #09-01 Singapore Land Tower Singapore 048623, telephone: +65 6337 5115.