Full Year Financial Statement And Dividend Announcement

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
	Year ended 31/10/2003	Year ended 31/10/2002	Increase / (Decrease)	Year ended 31/10/2003	Year ended 31/10/2002	Increase / (Decrease)
	S$'000	S$'000	%	S$'000	S$'000	%
Turnover	108,370	90,291	20.0	92,810	75,160	23.5
Cost of Sales	(95,752)	(77,974)	22.8	(83,149)	(65,750)	26.5
Gross Profit	12,618	12,317	2.4	9,661	9,410	2.7
Other Operating Income including Interest Income	1,009	1,060	(4.8)	2,979	676	NM
Distribution Costs	(1,412)	(1,559)	(9.4)	(1,354)	(1,490)	(9.1)
Administrative Expenses	(4,608)	(4,624)	(0.3)	(4,211)	(3,733)	12.8
Other Operating Expenses	(1,448)	(1,515)	(4.4)	(1,063)	(1,257)	(15.4)
Profit from Operations	6,159	5,679	8.5	6,012	3,606	66.7
Exceptional Items	-	56	NM	-	-	-
Finance Costs	(1,853)	(2,001)	(7.4)	(1,580)	(1,597)	(1.1)
Profit Before Taxation	4,306	3,734	15.3	4,432	2,009	120.6
Taxation	(899)	(859)	4.7	(698)	(456)	53.1
Net Profit After Taxation	3,407	2,875	18.5	3,734	1,553	NM
Minority Interests	(143)	(83)	NM	-	-	-
Net Profit Attributable to Shareholders	3,264	2,792	16.9	3,734	1,553	NM


The net profit attributable to shareholders included the following for the year ended 31 October 2003:



	Group
	Year ended 31/10/2003	Year ended 31/10/2002
	S$'000	S$'000
Investment Income	-	1
Other Income including Interest Income	1,009	894
Interest Income	78	11
Interest on Borrowings	1,853	2,001
Depreciation and Amortisation	831	660
(Write-Back) / Allowance for Doubtful Debts and Bad Debts Written Off	52	532
Write-Off of Stock Obsolescence	-	-
Provision for Stock Obsolescence	1	15
Impairment in Value of Investments	-	-
Loss on Disposal of Fixed Assets	3	-
Foreign Exchange Loss / (Gain)	(419)	(101)
Adjustments for Under or (Over)provision of Tax in respect of prior years	106	(137)
Exceptional Items	-	56
Extraordinary Items	-	-




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
	As at 31/10/2003	As at 31/10/2002	As at 31/10/2003	As at 31/10/2002
	S$'000	S$'000	S$'000	S$'000
Fixed assets	9,897	8,864	4,583	4,512
Intangible assets	(80)	(127)	212	265
Subsidiary companies	-	-	4,854	3,054
	9,817	8,737	9,649	7,831
Current assets
Stocks	34,471	30,297	27,811	25,363
Trade debtors	29,307	22,279	24,855	18,543
Other debtors, deposits and prepayments	1,195	511	1,062	200
Due from related parties	442	111	442	1
Due from subsidary	-	-	5,411	-
Fixed deposits with banks	1,596	607	1,503	516
Cash and bank balances	3,449	2,669	2,798	1,696
	70,460	56,474	63,882	46,319
Less:-
Current liabilities
Trade creditors	6,290	9,175	5,207	7,695
Other creditors and accruals	1,975	1,890	1,650	1,526
Finance lease creditors	58	105	11	57
Due to related parties	-	344	-	345
Due to subsidiary	-	-	-	135
Provision for taxation	912	936	649	690
Bank borrowings	38,288	29,328	35,077	24,485
	47,523	41,778	42,594	34,933
Net current assets	22,937	14,695	21,288	11,386
Non-current liabilities
Finance lease creditors	(185)	(249)	-	(11)
Bank borrowings	(6,592)	(3,294)	(6,592)	(1,213)
Deferred taxation	(394)	(249)	(49)	-
	(7,171)	(3,792)	(6,641)	(1,224)
	25,583	19,641	24,296	17,993
Share Capital and Reserves
Share capital	18,266	15,466	18,266	15,466
Share premium	657	115	657	115
Retained profits	6,142	3,651	5,373	2,412
Foreign currency translation reserve	(27)	(14)	-	-
Minority interests	545	423	-	-
	25,583	19,641	24,296	17,993




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

Amount repayable in one year or less, or on demand



As at 31/10/2003

As at 31/10/2002

Secured	Unsecured	Secured	Unsecured
2,563,000	35,725,000	15,864,000	13,464,000



Amount repayable after one year



As at 31/10/2003

As at 31/10/2002

Secured	Unsecured	Secured	Unsecured
6,592,000	-	3,294,000	-



Details of any collateral

The borrowings are secured by the Group's leasehold buildings.


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
	Year ended 31/10/2003	Year ended 31/10/2002
	S$'000	S$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	4,306	3,734
Adjustments for non-cash items:
Amortisation of negative goodwill	(101)	(110)
Amortisation of purchased goodwill	53	53
Depreciation of fixed assets	879	718
Fixed assets written off	-	74
Loss / (Gain) on disposal of fixed assets	3	(48)
Interest expense	1,853	2,001
Interest income	(78)	(11)
Dividend income from quoted equity investment	-	(1)
Currency re-alignment	(9)	(15)
Provision for stock obsolescence	1	-
Provision for doubtful trade debts	46	-
Bad trade debts written off	185	-
Provision for doubtful trade debts no longer required	(178)	-
Operating profit before working capital changes	6,960	6,395
Working capital changes:
Increase in stocks	(4,176)	(7451)
Increase in trade and other debtors	(6,848)	(2,089)
(Decrease) / Increase in trade and other creditors	(2,799)	2,890
(Increase) / Decrease in amounts due by related parties	(331)	3,273
Decrease in amounts due to related parties	(345)	(3,002)
Cash (used in) / generated from operations	(7,539)	16
Interest expense paid	(2,770)	(2,001)
Interest income received	78	11
Income tax paid	(777)	(479)
Net cash used in operating activities	(11,008)	(2,453)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets	(1,923)	(575)
Proceeds from disposal of fixed assets	4	63
Dividend income from quoted equity investment	-	1
Acquisition of subsidiary company	-	(688)
Net cash used in investing activities	(1,919)	(1,199)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from placement of shares	3,342	-
Net (repayments to) / proceeds from finance lease creditors	(111)	126
Proceeds from issue of shares,net of issue expenses	-	2,333
Dividends paid	(793)	-
Net proceeds from bank borrowings	12,258	10,393
Net cash from financing activities	14,696	12,852
Increase in cash and cash equivalents	1,769	9,200
Cash and cash equivalents at beginning of year	3,276	(5,924)
Cash and cash equivalents at end of year 31/10/2003	5,045	3,276


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

	Group
	Year ended 31/10/2003	Year ended 31/10/2002
	S$'000	S$'000
Cash and bank balances	3,449	2,669
Fixed deposits with banks	1,596	607
	5,045	3,276


In financial year 2003, the net cash of S$11.0 million used in operating activities was attributable to the increase in sales, which resulted in an increase in stocks of S$4.2 million, trade and other debtors of S$6.8 million.


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




The Group	Share Capital	Share Premium	Foreign Currency Translation Reserve	Retained Profits	Total
	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as 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 from share premium	418	(418)	-	-	-
Less: Listing expenses	-	(1,067)	-	-	(1,067)
Translation difference on financial statement of foreign subsidiary	-	-	(14)	-	(14)
Public issue of ordinary shares	3,400	-	-	-	3,400
Net profit for the financial year	-	-	-	2,792	2,792
Balance as at 31 October 2002	15,466	115	(14)	3,651	19,218
14,000,000 new ordinary shares of S$0.20 pursuant to private placement	2,800	-	-	-	2,800
Share premium arising on issue of 6,000,000 ordinary shares at S$0.20 each at S$0.2905 each	-	542	-	-	542
Dividends paid	-	-	-	(773)	(773)
Translation difference on financial statement of foreign subsidiary	-	-	(13)	-	(13)
Net profit for the financial year	-	-	-	3,264	3,264
Balance as at 31 October 2003	18,266	657	(27)	6,142	25,038

The Company	Share Capital	Share Premium	Retained Profits	Total
	S$'000	S$'000	S$'000	S$'000
Balance as 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 from share premium	418	(418)	-	-
Less: Listing expenses	-	(1,067)	-	(1,067)
Public issue of ordinary shares	3,400	-	-	3,400
Net profit for the financial year	-	-	1,553	1,553
Balance as at 31 October 2002	15,466	115	2,412	17,993
14,000,000 new ordinary shares of S$0.20 pursuant to private placement	2,800	-	-	2,800
Share premium arising on issue of 6,000,000 ordinary shares at S$0.20 each at S$0.2905 each	-	542	-	542
Dividends paid		-	(773)	(773)
Net profit for the financial year	-	-	3,734	3,734
Balance as at 31 October 2003	18,266	657	5,373	24,296




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


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.

On 15 September 2003, the Company issued 6,000,000 new ordinary shares by way of placement shares at a placement price of S$0.2905 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.


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 adopted the same accounting policies and methods of computations as presented in the most recently audited annual financial statements except for the adoption of SAS 20 (Revised) - The Effects of Changes in Foreign Exchange Rates, which became effective this financial year.


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


Following the adoption of SAS 20 (Revised), the Group changed its accounting policy such that its foreign subsidiary company's results are translated using average exchange rates, instead of closing rates as previously disclosed in the most recently audited annual financial statements.

The adoption of SAS 20 (Revised) has no material financial impact on the financial statements of the Company and Group and did not give rise to any adjustment to the opening balances of the respective retained profits of the current and prior years.


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
	Year ended 31/10/2003	Year ended 31/10/2002
Earning per ordinary share for the year based on net profit attributable to shareholders:
(i) Based on the weighted average number of ordinary shares in issue*	4.00 cents	4.31 cents
(ii) On a fully diluted basis	4.00 cents	4.31 cents
* Weighted average number of ordinary shares	81,663,333	64,733,333




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 31/10/2003	As at 31/10/2002
Net asset for the Group (S$'000)	25,038	19,218
Number of ordinary shares (S$'000)	91,330	77,330
Net asset value per ordinary share (cents)	27.41	24.85

Company	As at 31/10/2003	As at 31/10/2002
Net asset for the Company (S$'000)	24,296	17,993
Number of ordinary shares (S$'000)	91,330	77,330
Net asset value per ordinary share (cents)	26.60	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


The Group continues to show satisfactory growth for the financial year ended 31 October 2003. Both turnover and profitability registered double digits growth. For the first time, the Group's turnover crossed the S$100 million mark. The Group's turnover for the year grew by 20% from S$90.3 million to S$108.4 million. This growth was fuelled by an improvement in steel prices and a pick-up in overall steel demand, e.g. shipbuilding and ship repairing industries. Manufacturing accounts for about 10% of total Group's turnover.

However, gross profit margin was lower due to the competitive market conditions in the beginning of the second half of FY 2003. The swift end to the Iraqi war and the continuing hangover from SARS generally led to a correction in oil and overall commodity prices and hence, led to a generally more competitive environment. However, the later months of the second half saw a sharp increase in steel prices and demand. This was the result of strong demand from China which is one of the largest consumers of steel products in the world. This increased demand from China is a result of its strong domestic economy and large number of infrastructural projects that it is embarking ahead of the Beijing Olympics in 2008.

PBT for the Group continues to show strong growth of about 15%. The improvement in PBT is a result of higher turnover, a reduction in financing costs and other operating expenses. However, due to increase in number of shares, EPS for FY 2003 was lower at 4.0 cents per share compared to the corresponding period of 4.31 cents per share.


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 the year ended 31 October 2003 were in line with the prospect statement made for the six months ended 30 April 2003.


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 September 2003, the Group has placed out 6,000,000 new shares to a group of institutional investors and high net worth individuals. This is to raise the profile of the Group and attract institutional investors as shareholders to the Group. The monies raised will be mainly for the further expansion of the Group.

On our manufacturing division, the new pipe line has reached its planned production capacity towards October 2003. We are now increasing the product mix by adding the production of rounds and rectangles in addition to the squares which we had been producing. The wider products mix will allow us to further penetrate the pipes market and meet the demands of our customers.

On the whole, steel demand and prices remain fairly strong and are currently still on the uptrend. As a result, the directors are positive on the outlook for the first half of FY 2004. As for our expansion plans, besides relying on organic growth, the directors are on the look-out for possible acquisitions to generate further growth for the Group.


11. Dividend

(a) Current Financial Period Reported On

Any dividend recommended for the current financial period reported on? Yes



Name of Dividend	Final
Dividend Type	Cash
Dividend Rate	1 cent or 5 % per ordinary share (less tax)
Par value of shares	S$0.20
Tax Rate	22.0%



(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? Yes



Name of Dividend	First & Final
Dividend Type	Cash
Dividend Rate	1 cent or 5 % per ordinary share (less tax)
Par value of shares	S$0.20
Tax Rate	22.0%



(c) Date payable

To be announced later.


(d) Books closure date

To be announced later.


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

N.A.

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




	Trading	Manufacturing	Group
	S$'000	S$'000	S$'000
2003
Sales to external customers	97,286	11,084	108,370
Segment results	11,118	2,431	13,549
Expenses	(6,959)	(509)	(7,468)
Operating profit	4,159	1,922	6,081
Interest expense	(1,600)	(253)	(1,853)
Interest income	74	4	78
Exceptional items	-	-	-
Profit before tax	2,633	1,673	4,306
Taxation	(581)	(318)	(899)
Minority interest	(143)	-	(143)
Net profit	1,909	1,355	3,264
Segment assets	65,877	14,400	80,277
Segment liabilities	49,841	3,547	53,388
Capital expenditure	529	1,394	1,923
Depreciation expense	498	381	879
Amortisation expense	23	(71)	(48)




	Trading	Manufacturing	Group
	S$'000	S$'000	S$'000
2002
Sales to external customers	81,928	8,363	90,291
Segment results	10,796	2,571	13,367
Expenses	(6,854)	(844)	(7,698)
Operating profit	3,942	1,727	5,669
Interest expense	(1,807)	(194)	(2,001)
Interest income	9	1	10
Exceptional items	-	56	56
Profit before tax	2,144	1,590	3,734
Taxation	(569)	(290)	(859)
Minority interest	(83)	-	(83)
Net profit	1,492	1,300	2,792
Segment assets	53,618	11,593	65,211
Segment liabilities	36,576	7,809	44,385
Capital expenditure	406	169	575
Depreciation expense	374	344	718
Amortisation expense	14	(71)	(57)

	Singapore	Malaysia	Group
	S$'000	S$'000	S$'000
2003
Sales to external customers	99,338	9,032	108,370
Segment assets	77,666	2,611	80,277
Capital expenditure	1,907	16	1,923

	Singapore	Malaysia	Group
	S$'000	S$'000	S$'000
2002
Sales to external customers	81,388	8,903	90,291
Segment assets	62,296	2,915	65,211
Capital expenditure	266	309	575

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


Please refer to item 8.


15. A breakdown of sales




	Group
	Year ended 31/10/2003	Year ended 31/10/2002	Increase / (Decrease)
	S$'000	S$'000	%
Sales reported for first half year	45,615	41,181	10.8
Operating profit after tax before deducting minority interests reported for first half year	1,394	1,108	25.8
Sales reported for second half year	62,755	49,110	27.8
Operating profit after tax before deducting minority interests reported for second half year	2,013	1,767	13.9




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 (S$'000)	Previous Full Year (S$'000)
Ordinary	913	773
Preference	0	0
Total:	913	773