Half Year Financial Statement And Dividend Announcement For The Period Ended 30/04/2004

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 30/04/2004	6 months ended 30/04/2003	Increase / (Decrease)	6 months ended 30/04/2004	6 months ended 30/04/2003	Increase / (Decrease)
	S$'000	S$'000	%	S$'000	S$'000	%
Turnover	78,344	45,615	71.8	69,578	37,869	83.7
Cost of Sales	(64,840)	(39,496)	64.2	(58,128)	(33,637)	72.8
Gross Profit	13,504	6,119	120.7	11,450	4,232	170.6
Other Operating Income including Interest Income	327	182	79.7	264	268	(1.5)
Distribution Costs	(908)	(726)	25.1	(885)	(665)	33.1
Administrative Costs	(2,705)	(2,479)	9.1	(2,514)	(2,138)	17.6
Other Operating Expenses	(1,936)	(418)	363.2	(1,691)	(285)	493.3
Profit from Operations	8,282	2,678	209.3	6,624	1,412	369.1
Finance Costs	(915)	(750)	22.0	(826)	(587)	40.7
Profit Before Taxation	7,367	1,928	282.1	5,798	825	602.8
Taxation	(1,954)	(534)	265.9	(1,500)	(231)	549.4
Net Profit After Taxation	5,413	1,394	288.3	4,298	594	623.6
Minority Interests	(95)	(80)	18.8	-	-	-
Net Profit Attributable to Shareholders	5,318	1,314	304.7	4,298	594	623.6


The net profit attributable to shareholders included the following for the 6 months ended 30 April 2004:



	Group
	6 months ended 30/04/2004	6 months ended 30/04/2003
	S$'000	S$'000
Investment Income	-	-
Other Income including Interest Income	327	182
Interest Income	32	30
Interest on Borrowings	915	750
Depreciation & Amortisation	447	378
Allowance for / (Write-back of) Doubtful Debts & Bad Debts written off	1,215	(22)
Write-off of Stock Obsolescence	-	-
Provision for Stock Obsolescence	34	*
Impairment in Value of Investments	-	-
Gain on Disposal of Fixed Assets	(19)	-
Foreign Exchange (Gain) / Loss	(88)	97
Adjustments for Under or (Over)provision of Tax in respect of prior years	-	-
Exceptional Items	-	-
Extraordinary Items	-	-

* - denotes less than S$10,000.00

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 30/04/2004	Audited as at 31/10/2003	Unaudited as at 30/04/2004	Audited as at 31/10/2003
	S$'000	S$'000	S$'000	S$'000
Fixed assets	9,827	9,897	4,599	4,583
Intangible assets	(56)	(80)	186	212
Subsidiary companies	-	-	4,854	4,854
	9,771	9,817	9,639	9,649
Current assets
Stocks	48,769	34,471	39,889	27,811
Trade debtors	29,304	29,307	24,945	24,855
Other debtors, deposits and prepayments	1,234	1,195	785	1,062
Due from related parties	1,024	442	1,024	442
Due from subsidiary	-	-	4,503	5,411
Fixed deposits with banks	5,091	1,596	5,000	1,503
Cash and bank balances	7,072	3,449	6,307	2,798
	92,494	70,460	82,453	63,882
Less:-
Current liabilities
Trade creditors	6,749	6,290	5,987	5,207
Other creditors and accruals	2,372	1,975	1,576	1,650
Finance lease creditors	61	58	-	11
Provision for taxation	1,891	1,077	1,640	782
Bank borrowings	46,826	38,288	41,337	35,077
	57,899	47,688	50,540	42,727
Net current assets	34,595	22,772	31,913	21,155
Non-current liabilities
Finance lease creditors	(145)	(185)	-	-
Bank borrowings	(7,416)	(6,592)	(7,416)	(6,592)
Deferred taxation	(321)	(328)	(16)	(16)
	(7,882)	(7,105)	(7,432)	(6,608)
	36,484	25,484	34,120	24,196
Share capital and Reserves
Share capital	26,432	18,266	26,432	18,266
Share premium	3,030	657	3,030	657
Retained profits	6,447	6,042	4,658	5,273
Foreign currency translation reserve	(50)	(27)	-	-
Minority interests	625	546	-	-
	36,484	25,484	34,120	24,196

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

Amount repayable in one year or less, or on demand



As at 30/04/2004

As at 31/10/2003

Secured	Unsecured	Secured	Unsecured
473,000	46,414,000	2,621,000	35,725,000



Amount repayable after one year



As at 30/04/2004

As at 31/10/2003

Secured	Unsecured	Secured	Unsecured
7,561,000	-	6,777,000	-



Details of any collateral

Transferable Loan Facilities outstanding of S$7.8 million is secured by legal mortgage over leasehold buildings of the Group with net book value of S$6,879,200 as at 30 April 2004 (31/10/2003: S$7,077,615). The balance is amount due to finance lease creditors which are secured by fixed assets acquired under the respective finance lease contracts.

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
	30/04/2004	30/04/2003
	S$'000	S$'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	7,367	1,928
Adjustments for non-cash items:
Gain on disposal of fixed assests	(19)	-
Amortisation of negative goodwill	(51)	(50)
Amortisation of purchased goodwill	27	27
Depreciation of fixed assets	471	401
Interest expenses	915	750
Interest income	(32)	(30)
Currency re-alignment	(46)	(12)
Provision for stock obsolescence	34	-
Provision for doubtful debts	1,081	-
Bad trade debts written off	134	-
Operating profit before working capital changes	9,881	3,014
Working capital changes:
Increase in stocks	(14,332)	(2,421)
Increase in trade and other debtors	(1,422)	(2,992)
Increase/(Decrease) in trade and other creditors	856	(701)
Increase in amounts due by related parties	(582)	(20)
Decrease in amounts due to related parties	-	(282)
Cash used in operations	(5,599)	(3,402)
Interest paid	(744)	(750)
Interest received	32	30
Income tax paid	(1,140)	(526)
Net cash used in operating activities	(7,451)	(4,648)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets	(403)	(809)
Proceeds from the disposal of fixed assets	21	-
Net cash used in investing activities	(382)	(809)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from bank borrowings	9,362	4,808
Net repayments to finance lease creditors	(37)	(11)
Proceeds from placement of shares	6,539	-
Dividends paid	(913)	(773)
Net cash used in financing activities	14,951	4,024
Increase / (Decrease) in cash and cash equivalents	7,118	(1,433)
Cash and cash equivalents at beginning of year	5,045	3,276
Cash and cash equivalents at end of six months at 30/04/2004*	12,163	1,843


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

	As At 30/04/2004	As At 30/04/2003
	S$'000	S$'000
Cash and bank balances	7,072	1,252
Fixed deposits with banks	5,091	591
	12,163	1,843

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	Retained Profits	Foreign Currency Translation Reserve	Total
	S$'000	S$'000	S$'000	S$'000	S$'000
Balance as at 1 November 2002	15,466	115	3,650	(14)	19,217
Net profit for the six months ended 30 April 2003	-	-	1,314	-	1,314
Dividends paid	-	-	(773)	-	(773)
Balance as at 30 April 2003	15,466	115	4,191	(14)	19,758

Balance as at 1 November 2003	18,266	657	6,042	(27)	24,938
Bonus issue from retained profits	4,000	-	(4,000)	-	-
Bonus issue from share premium	566	(566)	-	-	-
Placement of 18,000,000 new ordinary shares of S$0.20 each at S$0.3633 each	3,600	2,939	-	-	6,539
Dividends paid	-	-	(913)	-	(913)
Translation difference on financial statements of foreign subsidiary	-	-	-	(23)	(23)
Net profit for the six months ended 30 April 2004	-	-	5,318	-	5,318
Balance as at 30 April 2004	26,432	3,030	6,447	(50)	35,859




Company	Share Capital	Share Premium	Retained Profits	Total
	S$'000	S$'000	S$'000	S$'000
Balance as 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 as at 30 April 2003	15,466	115	2,233	17,814

Balance as at 1 November 2003	18,266	657	5,273	24,196
Bonus issue from retained profits	4,000	-	(4,000)	-
Bonus issue from share premium	566	(566)	-	-
Placement of 18,000,000 new ordinary shares of S$0.20 each at S$0.3633 each	3,600	2,939	-	6,539
Dividends paid	-	-	(913)	(913)
Net profit for the six months ended 30 April 2004	-	-	4,298	4,298
Balance as at 30 April 2004	26,432	3,030	4,658	34,120

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 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 10 March 2004, the Company issued bonus shares of 22,832,500 new ordinary shares of S$0.20 each on the basis of one new ordinary share of S$0.20 each for every four existing shares held.

On 28 April 2004, the Company issued 18,000,000 new ordinary shares by way of placement shares at a placement price of S$0.3633 per placement share.

2. Whether the figures have been audited or reviewed and in accordance with

which auditing standard or practice.

The figures have not been audited.

3. Where the figures have been audited or reviewed, the auditors' report (including

any qualifications or emphasis of a 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.

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 financial period reported

on and the corresponding period of the immediately preceding financial year,
after deducting any provision for preference dividends.

	Group
	6 months ended 30/04/2004	6 months ended 30/04/2003
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*	5.38 cents	1.70 cents
(ii) On a fully diluted basis	5.38 cents	1.70 cents
* Weighted average number of ordinary shares	98,940,833	77,330,000

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 financial period reported on; and
(b) immediately preceding financial year.

Group	As at 30/04/2004	As at 31/10/2003
Net asset for the Group (S$'000)	35,859	24,938
Number of ordinary shares (S$'000)	132,163	91,330
Net assets value per ordinary share (cents)	27.13	27.31




Company	As at 30/04/2004	As at 31/10/2003
Net asset for the Group (S$'000)	34,120	24,196
Number of ordinary shares (S$'000)	132,163	91,330
Net assets value per ordinary share (cents)	25.82	26.49

8. A review of the performance of the group, to the extent necessary for a reasonable

understanding of the group's business. It must include a discussion of the
following:-

(a) 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; and

(b) any material factors that affected the cash flow, working capital, assets or
liabilities of the group during the current financial period reported on.

Our Group's turnover for the six months ended 30 April 2004 jumped nearly 72% over the same period last year to reach S$78.3 million (was S$45.6 million). The strong growth in turnover coincides with the strong recovery of steel prices and the pick-up in global steel demand in the first quarter of 2004. This increase in turnover was spearheaded by our trading division. Our trading business saw an increase in trading volumes averaging 15,000 metric tonnes a month compared to 12,000 metric tonnes a month in FY 2003. As a result of the increase in revenue contribution from trading, trading accounts for 93% of total turnover for the six months ended 30 April 2004 compared to 88% for the six months ended 30 April 2003. In line with the increase in turnover, other operating expenses such as subcontract costs and provision for doubtful debts have also increased.

PBT for the six months ended 30 April 2004 was up 282% over the same period last year to reach S$7.36 million. Due to the shortage in steel supply, our trading division was able to enjoy higher profit margins. On a Group basis, we were therefore able to achieve significantly higher gross profit margins of 17.2% compared to 13.4% last year. Despite an increase in the number of shares through the bonus share issue and share placements, EPS improved from 1.70 cents per share to 5.38 cents per share for the first half ended 30 April 2004.

Cash and cash equivalents strenghtened more than six-fold from S$1.8 million to S$12.2 million. In line with the increase in turnover, working capital requirements as reflected in net current assets, increased from S$22.7 million as at 31 October 2003 to S$34.5 million as at 30 April 2004. The increase in working capital was met by funds from operating profit, bank borrowings and proceeds from share placements.

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.

10. A commentary at the date of the announcement of the significant trends and

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 February 2004, the Group successfully completed our bonus shares issue exercise. As a result of our bonus share issue, the Group's number of shares increased from 91,330,000 shares to 114,162,500 shares.

In April 2004, the Group has placed out 18,000,000 new shares to a group of institutional investors and high networth individuals. This brings the total number of shares in the Group to 132,162,500 shares. The monies raised will be used mainly for working capital and for further expansion of the Group.

In May 2004, the Group was successfully upgraded to the Main Board of the Singapore Exchange, two years after our IPO in March 2002. We believe that both the share placement and our upgrade to the Main Board will further raise the profile of the Group as well as attract institutional investors as shareholders.

While steel prices have corrected from its March peaks, we believe that this correction is healthy. Prices appear to have stabilised at current levels. The correction has been more pronounced for steel products used directly in the construction industry. For products used in other industries like shipbuilding, the price correction has been less significant. For example, steel plates has corrected less than 10%. The directors remain positive about the Group's performance for the remainder of FY 2004 and expect the second half of FY 2004 to be better than the same period last year.

11. Dividend

(a) Current Financial Period Reported On

Any dividend declared 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
Total:

BY ORDER OF THE BOARD

Wee Piew
Chief Executive Officer
18/06/2004