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Profit & Loss
Review of Performance
Income Statement
Revenue
The Group registered total revenue of S$17.8m for 1st Quarter ended 31 March 2018 ("1Q FY2018") which was 27.6% lower than that of 1st Quarter ended 31 March 2017 ("1Q FY2017"), mainly due to lower trading revenue.
Revenue from Equipment Rental business was marginally lower at S$10.2m for 1Q FY2018 as compared to S$10.5m in 1Q FY2017.
Revenue from Trading business was 46.3% lower at S$7.6m for 1Q FY2018 as compared to S$14.1m in 1Q FY2017, mainly due to lower number of units delivered.
Gross Profit
The Group registered total gross profit of S$2.8m for 1Q FY2018, which was 34.8% lower than that of 1Q FY2017.
Gross profit from Equipment Rental business was 9.2% lower at S$2.1m for 1Q FY2018 as compared to S$2.3m in 1Q FY2017, mainly due to marginal drop in rental revenue and lower rental rates.
Gross profit from Trading business was 62.6% lower at S$0.8m for 1Q FY2018 as compared to S$2.1 m in 1Q FY2017, mainly due to lower number of units delivered.
Net Profit / (Loss)
The Group registered net profit of S$0.3m for 1Q FY2018. This was mainly due to the net impact of the following:
- drop in gross profit generated from Equipment Rental and Trading Businesses;
- higher realised and unrealised foreign exchange gain;
- higher finance costs incurred due to higher interest rate;
- income tax expenses as a result of deferred taxation adjustments.
Statement Of Financial Position
Current assets
As at 31 March 2018, current assets amounted to S$62.0m or 32.2% of total assets. Current assets comprised mainly cash and bank balances, trade receivables and inventories. Total current assets increased by S$2.9m as compared to 31 December 2017, mainly due to increase in inventories, trade receivables and cash and bank balances.
Non-current assets
As at 31 March 2018, non-current assets amounted to S$130.7 m or 67.8% of total assets. Non-current assets comprised mainly property, plant and equipment. Total non-current assets decreased by S$3.1m as compared to 31 December 2017, mainly due to depreciation charged for the period.
Current liabilities
As at 31 March 2018, current liabilities amounted to S$36.0m or 51.4% of total liabilities. Current liabilities comprised mainly bills payable, trade payables, other payables, current portion of bank loans and finance leases. Total current liabilities decreased by S$0.5m as compared to 31 December 2017.
Non-current liabilities
As at 31 March 2018, non-current liabilities amounted to approximately S$34.0m or 48.6% of total liabilities. Non-current liabilities comprise mainly non-current portion of finance leases and deferred tax. Total non-current liabilities decreased by S$0.9m as compared to 31 December 2017, mainly due to repayment of bank loans and finance leases.
Working Capital
As at 31 March 2018, the Group registered a positive working capital of S$26.0m as compared to that of S$22.6m as at 31 December 2017.
Equity
The Group's equity increased by S$1.1m to S$122.7m as compared to S$121.6m as at 31 December 2017, mainly due to total comprehensive income recorded for 1Q FY2018.
Commentary On Current Year Prospects
The Group expects the business environment to remain highly competitive.
Balance Sheet
