Half Year Financial Statement And Dividend Announcement

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

1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year



 

		Group			Company
	6 months ended 30/04/2003	6 months ended 30/04/2002	Increase / (Decrease)	6 months ended 30/04/2003	6 months ended 30/04/2002	Increase / (Decrease)
	S$'000	S$'000	%	S$'000	S$'000	%
Turnover	45,615	41,181	10.8	37,869	33,904	11.7
Cost of Sales	(39,496)	(35,391)	11.6	(33,637)	(29,286)	14.9
Gross Profit	6,119	5,790	5.7	4,232	4,618	(8.4)
Other Operating Income including Interest Income	182	443	(58.9)	268	214	25.2
Distribution Costs	(726)	(815)	(10.9)	(665)	(802)	(17.1)
Administrative Expenses	(2,479)	(2,338)	6.0	(2,138)	(1,776)	20.4
Other Operating Expenses	(418)	(638)	(34.5)	(285)	(595)	(52.1)
Profit from Operations	2,678	2,442	12.3	1,412	1,659	(14.9)
Finance Costs	(750)	(980)	(23.5)	(587)	(768)	(23.6)
Profit Before Taxation	1,928	1,462	31.9	825	891	(7.4)
Taxation	(534)	(354)	50.8	(231)	(218)	6.0
Net Profit After Taxation	1,394	1,108	25.8	594	673	(11.7)
Minority Interests	(80)	(38)	110.5	-	-	-
Net Profit Attributable to Shareholders	1,314	1,070	22.8	594	673	(11.7)





The net profit attributable to shareholders included the following for the period ended 30 April 2003:



	Group
	6 months ended 30/04/2003	6 months ended 30/04/2002
	S$'000	S$'000
Investment Income	nil	nil
Other Income including Interest Income	182	443
Interest on Borrowings	750	980
Depreciation and Amortisation	378	326
(Write-back) / Allowance for Doubtful Debts and Bad Debts Written Off	(22)	323
Write-Off of Stock Obsolescence	nil	nil
Provision for Stock Obsolescence	*	14
Impairment in Value of Investments	nil	nil
Foreign Exchange Loss / (Gain)	97	(31)
Adjustments for Under or Overprovision of Tax in respect of prior years	nil	nil
Exceptional Items	nil	nil
Extraordinary Items	nil	nil

* denotes less than S$10,000




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



 

	Group		Company
	Unaudited as at 30/04/2003	Audited as at 31/10/2002	Unaudited as at 30/04/2003	Audited as at 31/10/2002
	S$'000	S$'000	S$'000	S$'000
Fixed assets	9,272	8,864	4,797	4,512
Intangible assets	(104)	(127)	239	265
Subsidiary companies	-	-	3,054	3,054
	9,168	8,737	8,090	7,831
Current assets
Stocks	32,717	30,297	27,618	25,363
Trade debtors	23,203	22,279	19,728	18,543
Other debtors, deposits and prepayments *	2,579	511	1,367	200
Due from related parties	131	111	108	1
Due from subsidiary	-	-	3,803	-
Fixed deposits with banks	591	607	500	516
Cash and bank balances	1,252	2,669	613	1,696
	60,473	44,799	53,737	46,319
Less:-
Current liabilities
Trade creditors	8,580	9,175	7,654	7,695
Other creditors and accruals	1,784	1,890	1,219	1,526
Finance lease creditors	107	105	28	57
Due to related parties	62	344	62	345
Due to subsidiary	-	-	-	135
Provision for taxation	946	936	563	690
Bank borrowings	27,130	29,328	24,187	24,485
	38,609	41,778	33,713	34,933
Net current assets	21,864	14,695	20,024	11,386
Non-current liabilities
Finance lease creditors	(236)	(249)	-	(11)
Bank borrowings	(10,300)	(3,294)	(10,300)	(1,213)
Deferred taxation	(241)	(249)	-	-
	(10,777)	(3,792)	(10,300)	(1,224)
	20,255	19,641	17,814	17,993
Share Capital and Reserves
Share capital	15,466	15,466	15,466	15,466
Share premium	115	115	115	115
Revenue reserve	4,191	3,651	2,233	2,412
Foreign currency translation	(14)	(14)	-	-
Minority interests	497	423	-	-
	20,255	19,641	17,814	17,993


*Other debtors, deposits and prepayments included prepayments of term loan interest of S$996k and deposits for the purchase of fixed asset of S$746k.






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


Amount repayable in one year or less, or on demand



As at 30/04/2003

As at 31/10/2002

Secured	Unsecured	Secured	Unsecured
S$2,944,000	S$24,186,000	S$15,864,000	S$13,464,000



Amount repayable after one year



As at 30/04/2003

As at 31/10/2002

Secured	Unsecured	Secured	Unsecured
S$10,300,000	-	S$3,294,000	-



Details of any collateral

N.A.



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



 

	Group
	6 months ended 30/04/2003 S$'000	6 months ended 30/04/2002 S$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	1,928	1,462
Adjustments for non-cash items:	1,086	1,297
Operating profit before working capital changes	3,014	2,759
Working capital changes:	(6,416)	(10,279)
Cash used in operations	(3,402)	(7,520)
Interest paid	(750)	(980)
Interest received	30	5
Income tax paid	(526)	(208)
Net cash used in operating activities	(4,648)	(8,703)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets	(809)	-
Net cash used in investing activities	(809)	-
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in bank borrowings	4,808	6,074
(Decrease) / Increase in finance lease creditors	(11)	58
Proceeds from issue of share capital net of listing expenses	-	3,400
Dividends paid	(773)	-
Net cash used in financing activities	4,024	9,532
(Decrease) / Increase in cash and cash equivalents	(1,433)	829
Cash and cash equivalents at beginning of year	3,276	(617)
Cash and cash equivalents at end of six months at 30/04/2003*	1,843	212



* Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts:

	6 months ended 30/04/2003 S$'000	6 months ended 30/04/2002 S$'000
Cash and bank balances	1,252	173
Fixed deposits with banks	591	602
Bank overdrafts	-	(563)
	1,843	212



 

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



 

Group	Share capital	Share premium	Foreign currency translation reserve	Retained profits	Total
	S$'000	S$'000	S$'000	S$'000	S$'000
Balance at 1 November 2001	4,600	1,600	-	5,215	11,415
Issue of ordinary shares for the acquisition of subsidiary pursuant to the restructuring exercise	2,692	-	-	-	2,692
Bonus issue from retained profits	4,356	-	-	(4,356)	-
Bonus issue form share premium	418	(418)	-	-	-
Less:-
Listing expenses	-	(1,067)	-	-	(1,067)
Translation difference on financial statements of foreign subsidiary	-	-	9	-	9
Public issue of ordinary shares	3,400	-	-	-	3,400
Net profit for the six months ended 30 April 2003	-	-	-	1,070	1,070
Balance at 30 April 2002	15,466	115	9	1,929	17,519
Balance at 1 November 2002	15,466	115	(14)	3,650	19,217
Net profit for the six months ended 30 April 2003	-	-	-	1,314	1,314
Dividends paid	-	-	-	(773)	(773)
Balance at 30 April 2003	15,466	115	(14)	4,191	19,758


 

Company	Share capital	Share premium	Retained profits	Total
	S$'000	S$'000	S$'000	S$'000
Balance at 1 November 2001	4,600	1,600	5,215	11,415
Issue of ordinary shares for the acquisition of subsidiary pursuant to the restructuring exercise	2,692	-	-	2,692
Bonus issue from retained profits	4,356	-	(4,356)	-
Bonus issue form share premium	418	(418)	-	-
Less:-
Listing expenses	-	(1,067)	-	(1,067)
Public issue of ordinary shares	3,400	-	-	3,400
Net profit for the six months ended 30 April 2003	-	-	673	673
Balance at 30 April 2002	15,466	115	1,532	17,113
Balance at 1 November 2002	15,466	115	2,412	17,993
Net profit for the six months ended 30 April 2003	-	-	594	594
Dividends paid	-	-	(773)	(773)
Balance at 30 April 2003	15,466	115	2,233	17,814

 

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 or 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 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 issues of shares during the six months ended 30 April 2003.

On 30 May 2003, the Company issued 8,000,000 new ordinary shares by way of placement shares at a placement price of S$0.20 per placement share.



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 have not been audited nor reviewed.



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


N.A.



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


The Group has applied the same accounting policies and methods of computation in the financial statements for the current financial period as compared with the audited financial statements as at 31 October 2002.



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


N.A.



6. Earnings 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



 

	Group
	6 months ended 30/04/2003	6 months ended 30/04/2002
Earning per ordinary share for the year based on net profit attributable to shareholders:	(cents)	(cents)
(i) Based on the weighted average number of ordinary shares in issue	1.70	1.38
(ii) On a fully diluted basis	1.70	1.38



 

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



 

Group	As at 30/04/2003	As at 31/10/2002
Net asset for the Group (S$)	19,758,000	19,218,000
Number of ordinary shares (S$)	77,330,000	77,330,000
Net asset value per ordinary share (cents)	25.55	24.85

Company	As at 30/04/2003	As at 31/10/2002
Net asset for the Company (S$)	17,814,000	17,993,000
Number of ordinary shares (S$)	77,330,000	77,330,000
Net asset value per ordinary share (cents)	23.04	23.26



 

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



 

	Group
TURNOVER	6 months ended 30/04/2003		6 months ended 30/04/2002
	S$'000	%	S$'000	%
Trading	40,206	88.14	38,254	92.89
Manufacturing	5,409	11.86	2,927	7.11
	45,615	100.00	41,181	100.00



The Group's turnover grew by 10.8% for the six months ended 30 April 2003 to $45.6 million as a result of the higher contribution from our manufacturing activities and the general overall improvement in steel prices. Our manufacturing activities enjoyed strong growth, contributing 11.86% to Group's turnover, an increase from last year's 7.11%. Ship plates and steel plates continue to form a significant part of the Group's turnover, accounting for almost 48% of the turnover, up slightly from 46% for the whole of the last financial year.

PBT for the six months ended 30 April 2003 showed a satisfactory increase of 31.9% to $1.93 million over the same period last year. The increase in PBT is due to bigger contribution from manufacturing which yields better profit margin and reduction in operating expenses and finance costs. In line with the improvement in PBT, EPS for the six months ended 30 April 2003 increased to 1.70 cents per share from 1.38 cents per share in the corresponding period last year.



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


No forecasts have been previously made to the shareholders. Our results for six months ended 30 April 2003 were in line with the prospect made for the financial year ended 31 October 2002.



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


In order to further expand the Group, the Group has in June 2003 placed out 8,000,000 new shares at $0.20 per share to a strategic investor, Lingco Marine Pte Ltd (Lingco). Lingco is an established shipbuilding and chartering company with presence in Indonesia and Malaysia. There is significant synergy as Lingco uses ship plates as a major raw material for their shipbuilding activities. We are also discussing with Lingco on strategic partnerships for new investments by combining their expertise in shipbuildng and chartering and our strong position as a stockist of steel products.

Our new production line for pipe has been installed and is currently undergoing trial runs. We aim to have the line fully operational before the end of this financial year. This will increase our production capacity of 600 MT per month by another 1,000 MT per month.

Steel prices have gone down and stabilised since its upward trend during this period of reporting. The general Singapore economy continues to be weak due to the impact of SARS and the lacklustre US economy. In the light of these uncertainties and difficulties, the directors are cautious but remain optimistic that the Group will be profitable for FY2003.



11. Dividend


(a) Current Financial Period Reported On

Any dividend recommended for the current financial period reported on? None
(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? None

(c) Date payable

N.A.


(d) Books closure date

N.A.



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


No dividend has been declared.

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

 

13. 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


N.A.



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


N.A.



15. A breakdown of sales


N.A.



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


Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)



	Latest Full Year ()	Previous Full Year ()
Ordinary
Preference	0	0
Total:


 

BY ORDER OF THE BOARD

Wee Piew
Chief Executive Officer
02/07/2003