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Financials
Fifth Quarter Results Financial Statement And Related Announcement
Financials Archive

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Profit & Loss

 

Review of Performance

Income Statement

Revenue

The Group registered total revenue of $118.2m for 15M FY 2017 ("from 1 July 2016 to 30 September 2017") and $18.5m in 5Q FY2017 ("from 1 July 2017 to 30 September 2017"), which was 8.9% and 50.9% lower than the prior corresponding periods respectively, mainly due to lower trading revenue in 5Q FY2017.

Revenue from Equipment Rental business increased by 6.8% to $56.8m for 15M FY2017 and 1.2% to $11.9m in 5Q FY2017 as compared to the prior corresponding periods respectively, mainly due to increase in fleet size being rented out.

Revenue from Trading business for 15M FY2017 was 19.8% lower at $61.4m and 74.5% lower at $6.6m in 5Q FY2017 as compared to the prior corresponding periods respectively, mainly due to lesser units delivered in 5Q FY2017.

Gross Profit

The Group registered total gross profit of $22.5m for 15M FY2017, which was 17% higher than the prior corresponding period with higher gross profit from both Equipment Rental and Trading businesses. The Group registered total gross profit of $4.1m in 5Q FY2017, which was 32.1% lower than the prior corresponding period, mainly due to lower trading revenue in 5Q FY2017.

Gross profit from Equipment Rental business increased by 16.4% to $15.0m for 15M FY2017 and 6.5% to $3.3m in 5Q FY2017 as compared to the prior corresponding periods respectively, in line with the higher rental revenue generated.

Gross profit from Trading business for 15M FY2017 increased by 18.2% to $7.4m as compared to the prior corresponding period, mainly due to better product mix. Gross profit from Trading business in 5Q FY2017 was lower at $0.8m, in line with lower trading revenue.

Net Profit/ (Loss)

The Group registered net profit of $1.6m for 15M FY2017 and net loss after tax of $0.05m in 5Q FY2017 respectively. This was mainly due to the net impact of the following:

  1. higher gross profit for 15M FY2017 and lower gross profit in 5Q FY2017;

  2. lower other operating income mainly from unrealised fair value differences on foreign currency contracts and lower gain from disposal of equipment for 5Q FY2017 and 15M FY2017;

  3. lower administrative expenses as a result of cost reduction initiatives for 15M FY2017;

  4. higher finance costs due to increase in financing of rental fleet for 15M FY2017;

  5. lower other operating expenses mainly due to unrealised foreign exchange differences in 5Q FY2017 and absence of one-time recognition of loss on disposal of an associate in the prior year;

  6. income tax expenses.

Statement Of Financial Position

Current assets
As at 30 September 2017, current assets amounted to $54.9m or 28.5% of total assets. Current assets comprised mostly of cash and bank balances, trade receivables and inventories. Total current assets decreased by $38.3m as compared to 30 June 2016 mainly due to decrease in inventories, trade receivables and cash and bank balances.

Non-current assets
As at 30 September 2017, non-current assets amounted to $137.9 m or 71.5% of total assets. Non-current assets comprised mostly of fixed assets and investments. Total non-current assets increased by $8.7m mainly due to increase in rental fleet.

Current liabilities
As at 30 September 2017, current liabilities amounted to $37.9m or 52.9% of total liabilities. Current liabilities comprised mostly of bills payable, other payables, current portion of bank loans and finance leases. Total current liabilities decreased by $28.3m as compared to 30 June 2016, mainly due to repayment of bills payable.

Non-current liabilities
As at 30 September 2017, non-current liabilities amounted to approximately $33.8m or 47.1% of total liabilities. Non-current liabilities comprised mostly of non-current portion of finance leases and deferred tax.

Working Capital
As at 30 September 2017, the Group registered a positive working capital of $16.9m as compared to that of $27.0m as at 30 June 2016.

Equity
As at 30 September 2017, the Group's equity was lower at $121.1m as compared to $122.8m as at 30 June 2016, mainly due to dividend paid.

Commentary On Current Year Prospects

With business environment continuing to be uncertain and competitive, the Group expects the markets in which we operate to remain challenging.

Balance Sheet

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