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Profit & Loss
Review of Performance
Income Statement
The Group registered total revenue of about $26.6m for 3Q FY2012 which was flat as compared to 3Q FY2011, and total revenue of about $90.5m for 9M FY2012 which was 24.0% higher than the prior 9M FY2011. The increase in total revenue was mainly due to higher Equipment Rental revenue, partially offset by lower Trading revenue recorded in 3Q FY2012.
Revenue from Equipment Rental business increased by 23.6% to approximately $10.4m for 3Q FY2012 and increased by about 18.3% to approximately $28.4m for 9M FY2012, as compared to the respective prior periods, due to improved contributions from overseas subsidiaries and an expanded fleet size in the group.
Revenue from Trading business in 3Q FY2012 decreased by about 13.1% to approximately $16.2m as compared to the prior 3Q FY2011, mainly due to smaller tonnage canes traded. Nevertheless for the 9M FY2012, revenue from Trading business was about 26.8% higher at approximately $62.0m as compared to the prior 9M FY2011. This was due to bigger tonnage cranes and higher sales volume recorded in the first six months of FY2012.
The Group registered total gross profit of about $4.3m for 3Q FY2012 which was 14.2% higher than the corresponding period of the prior 3Q FY2011, mainly due to higher gross profit generated from Equipment Rental business. For 9M FY2012, total gross profit was 15.2% higher at about $13.4m as compared to the prior 9M FY2011. This was mainly due to higher gross profit generated from both the Equipment rental business and Trading business.
Gross profit for Equipment Rental business increased by about 23.8% to approximately $3.2m for 3Q FY2012 and increased by about 10.3% to approximately $8.5m for 9M FY2012, as compared to the respective prior periods. The increased was mainly due to improved contribution from overseas subsidiaries.
Gross profit from Trading business in 3Q FY2012 decreased by about 6.4% to approximately $1.1m as compared to the prior 3Q FY2011, in line with the lower trading revenue recorded. For 9M FY2012, gross profit from Trading business was 24.9% higher at approximately $4.8m as compared to the prior 9M 2011, mainly due to higher revenue recorded in the first six months of FY2012.
Net Profit
The Group registered net profit before tax of about $1.7m for 3Q FY2012 (and about $5.5m for 9M FY2012), which was 2.0% lower than the corresponding period of the prior 3Q FY2011 (and 15.0% lower than 9M FY2011). This was mainly due to the net impact of the following:
- higher gross profit for 3Q FY2012 and 9M FY2012;
- higher other operating income in 3Q FY2012 vis-a-vis 3Q FY2011, mainly from unrealised foreign exchange gain. Neverthless, for the 9M FY2012, other operating income lower by 27.3 % as a result of lower insurance claim and no gain of sales of investments as compared to prior year;
- higher selling, administrative and finance costs which are in line with the increase in revenue and fleet size; and
- lower contributions from an associate company.
Net profit after tax for the Group increased by 12.9% to approximately $1.4m for 3Q FY2012 and increased by about 8.3% to approximately $5.6m for 9M FY2012, as compared to the respective prior periods, primarily due to current income tax benefit registered in the current period as a result of the tax credits received from finalisation of prior periods tax assessment.
Statement Of Financial Position
Current assets
As at 31 March 2012, total current assets amounted to approximately $64.7m or 34.9% of our total assets. Current assets comprises mostly of cash and bank balances, trade receivables and inventories. Total current assets increased about $5.6m as compared to 30 June 2011, mainly from higher inventories and trade receivables. The increase in inventories and trade receivables were mainly due to higher purchase and sales of inventory cranes towards the end of this reporting period.
The Group's liquidity remains relatively healthy with cash and bank balances of about $13.5m.
Non-current assets
As at 31 March 2012, non-current assets amounted to approximately $120.7m or 65.1% of our total assets. Non-current assets comprise mostly of fixed assets and investments. Total non-current assets increased about $23.0m as compared to 30 June 2011, mainly due to increase in the equipment rental fleet size in the group and the recent investment in the 70% owned Malaysia susbidiary.
Current liabilities
As at 31 March 2012, current liabilities amounted to about $67.7m or 71.2.% of our total liabilities. Current liabilities comprises mostly of trade payables, bills payable, current portion of finance leases and bank loans. Total current liabilities increased about $18.6m as compared to 30 June 2011 with higher trade and bills payable, which were mostly in line with the increase in inventories and trade receivables as mentioned above. Finance leases increased in conjunction with the increase of fixed assets. Current portion of bank loans comprises of working capital bridging loans and current portion of long term loan, which were drawdown for financing of the group's regional expansion during the period. With the increased in current liabilities as mentioned above, the Group registered a negative working capital of approximately $3.0m.
Non-current liabilities
As at 31 March 2012, non-current liabilities amounted to approximately $27.4m or 28.8% of our total liabilities. Non-current liabilities comprises mostly of non-current portion of finance leases, bank loans and deferred tax. Total non-current liabilities increased about $6.6m compared to 30 June 2011, mostly from drawdown of finance leases and bank loan as mentioned above, in line with the increase in fixed assets and expansion of the group.
Equity
The Group's equity increased from $86.9 million as at 30 June 2011 to $90.0m as at 31 March 2012 mainly due to the comprehensive income generated for 9M FY2012, after netting off against a dividend payment of about S$2.5m in November 2011.
Commentary On Current Year Prospects
The Group expects the local business environment to remain challenging, amidst the continuing external uncertainties especially the problems of the Eurozone. The regional key markets in which the group operates may be affected.
Going forward, the group will continue to maintain active and sound management in growing its businesses in the existing and overseas markets.
Barring any unforeseen circumstances, the group remains cautiously optimistic on its outlook for the year 2012 and expects to remain profitable for this financial year ending 30 June 2012.
Balance Sheet
