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Profit & Loss
Review of Performance
Income Statement
Revenue
The Group registered total revenue of $141.6m for 18M FY2017 ("from 1 July 2016 to 31 December 2017"), which was 6.1% lower than the prior corresponding period, mainly due to lower trading revenue. The Group registered total revenue of $23.3m in 6Q FY2017 ("from 1 October 2017 to 31 December 2017"), which was 11.1% higher than the prior corresponding period, from a mix of lower rental revenue and higher trading revenue in 6Q FY2017.
Revenue from Equipment Rental business was 4.7% higher at $67.5m for 18M FY2017 as compared to the prior corresponding period, mainly due to increase in average fleet size rented out. Revenue from Equipment Rental business was 5.3% lower at $10.7m in 6Q FY2017 as compared to the prior corresponding period, mainly due to lower overtime charged out.
Revenue from Trading business was 14.2% lower at $74.1m for 18M FY2017 as compared to the prior corresponding period, mainly due to sales of smaller tonnage equipment for 18M FY2017. Revenue from Trading business was 30.0% higher at $12.7m in 6Q FY2017 as compared to the prior corresponding period, mainly due to delivery of bigger tonnage equipment in 6Q FY2017.
Gross Profit
The Group registered total gross profit of $26.1m for 18M FY2017, which was 10.2% higher than the prior corresponding period with higher gross profit from both Equipment Rental and Trading businesses. The Group registered total gross profit of $3.6m in 6Q FY2017, which was 18.8% lower than the prior corresponding period, with lower gross profit from both Equipment Rental and Trading businesses.
Gross profit from Equipment Rental business was 8.3% higher at $17.5m for 18M FY2017 as compared to the prior corresponding period, in line with the higher rental revenue generated. Gross profit from Equipment Rental business was 23.6% lower at $2.5m in 6Q FY2017 as compared to prior corresponding period, mainly due to the lower rental revenue in 6Q FY2017.
Gross profit from Trading business was 14.3% higher at $8.6m for 18M FY2017 as compared to the prior corresponding period, mainly due to better product mix. Gross profit from Trading business was 6.0% lower at $1.1m in 6Q FY2017 as compared to prior corresponding period, mainly due to product mix delivered in 6Q FY2017 vis-a-vis 2Q FY2017 ("from 1 October 2016 to 31 December 2016")
Net Profit /(Loss)
The Group registered net profit of $1.3m for 18M FY2017 and net loss after tax of $0.3m in 6Q FY2017 respectively. This was mainly due to the net impact of the following:
- higher gross profit for 18M FY2017 and lower gross profit in 6Q FY2017;
- lower other operating income mainly due to lower gain from disposal of equipment and unrealised foreign exchange differences for 18M FY2017 & 6Q FY2017 respectively;
- lower administrative expenses as a result of cost reduction initiatives for 18M FY2017 & 6Q FY2017;
- higher finance costs due to increase in financing of rental fleet for 18M FY2017 & 6Q FY2017;
- lower other operating expenses mainly due to unrealised fair value differences on foreign currency contracts in 6Q FY2017 and absence of one-time recognition of loss on disposal of an associate in the prior year;
- income tax expenses.
Statement Of Financial Position
Current assets
As at 31 December 2017, current assets amounted to $59.0m or 30.6% of total assets. Current assets comprised mostly of cash and bank balances, trade receivables and inventories. Total current assets decreased by $34.2m as compared to 30 June 2016 mainly due to decrease in inventories, trade receivables and cash and bank balances.
Non-current assets
As at 31 December 2017, non-current assets amounted to $133.9 m or 69.4% of total assets. Non-current assets comprised mostly of fixed assets and investments. Total non-current assets increased by $4.7m mainly due to increase in rental fleet.
Current liabilities
As at 31 December 2017, current liabilities amounted to $36.5m or 51.1% 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 $29.7m as compared to 30 June 2016, mainly due to repayment of bills payable.
Non-current liabilities
As at 31 December 2017, non-current liabilities amounted to approximately $34.9m or 48.9% of total liabilities. Non-current liabilities comprised mostly of non-current portion of finance leases and deferred tax.
Working Capital
As at 31 December 2017, the Group registered a positive working capital of $22.6m as compared to that of $27.0m as at 30 June 2016.
Equity
As at 31 December 2017, the Group's equity was lower at $121.6m as compared to $122.8m as at 30 June 2016, mainly due to interim dividend paid for Financial year 2017.
Commentary On Current Year Prospects
The business environment continued to be competitive, the Group expects the markets in which it operates to remain challenging.
Balance Sheet
