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Condensed Statement of Profit or Loss and Other Comprehensive Income
Review of Performance
Income Statement
Revenue
The Group registered a total revenue of S$31.5m in 2H FY2023, which was 25.6% higher than 2H FY2022. Total revenue of S$66.2m for 12M FY2023 was 28.4% higher as compared to 12M FY2022. The increase was mainly due to higher revenue generated from both business segments.
Revenue from Equipment Rental business increased by 13.9% to S$15.5m in 2H FY2023 and increased by 12.5% to S$30.7m in 12M FY2023 as compared to the corresponding periods in FY2022 respectively. The increase was mainly due to improved contribution from our Singapore's operations.
Revenue from Trading business increased by 39.4% to S$16.0m in 2H FY2023 and increased by 46.4% to S$35.5m in 12M FY2023 as compared to the corresponding periods in FY2022 respectively. The overall increase was mainly due to the increase in the number of cranes sold by the Malaysia entity, as a result of streamlining the Equipment Rental business in Malaysia during the period.
Gross Profit
The Group registered a total gross profit of S$9.3m in 2H FY2023 which was 41.8% higher than 2H FY2022. Total gross profit for 12M FY2023 was S$18.4m and 43.6% higher as compared to 12M FY2022 mainly due to higher contribution from both the Group's Equipment Rental and Trading businesses. Gross profit margin for both business segments have steadily increased from FY2022 to FY2023.
The Group registered a gross profit of S$5.3m from Equipment Rental business in 2H FY2023 which was 38.3% higher than 2H FY2022. The gross profit for 12M FY2023 was S$10.0m and 27.0% higher as compared to 12M FY2022. The increase in FY2023 was mainly attributed to the increased level of activities in the Singapore operation.
The Group registered a gross profit of S$4.0m from Trading business in 2H FY2023 which was 46.7% higher than 2H FY2022. The gross profit for 12M FY2023 was S$8.5m and 69.6% higher as compared to 12M FY2023. The increase was due to higher trading activities that commanded higher margin transactions.
Other Operating Income
Other operating income increased by S$1.0m and S$1.5m in 2H FY2023 and 12M FY2023 respectively as compared to the corresponding prior periods in FY2022 respectively. The overall increase for 12M FY2023 was mainly due to the gain on disposal of property, plant and equipment and higher interest income earned during the period.
Selling Expenses
Selling expenses decreased by S$0.1m in both 2H FY2023 and 12M FY2023 as compared to the corresponding prior periods in FY2022 respectively. The decrease was mainly due to improved efficiency in the sales process and streamlined operations, which have reduced the overall cost of selling.
Administrative Expenses
Administrative expenses increased by S$0.3m and S$1.2m in 2H FY2023 and 12M FY2023 respectively as compared to the corresponding prior periods in FY2022 respectively. The increase was mainly due to increase in directors and staff related expenses and higher professional fees.
Other Operating Expenses
Other operating expenses increased by S$0.3m and S$0.5m in 2H FY2023 and 12M FY2023 respectively as compared to the corresponding period periods in FY2022 respectively. The increase was mainly due to write off of property, plant and equipment and bad debts.
Finance Costs
Finance costs increased by S$0.1m in both 2H FY2023 and 12M FY2023 respectively as compared to the corresponding prior periods in FY2022 respectively. The increase was mainly due to obtaining of additional hire purchase financing for the purchase of new cranes.
Income Tax Expenses
The Group recorded an income tax expense in 12M FY2023, mainly due to provision of current tax expenses for 12M FY2023.
Statement Of Financial Position
Current assets
As at 31 December 2023, current assets amounted to S$61.6m or 48% of total assets. Current assets mainly comprise of cash and bank balances, trade and other receivables and inventories. Total current assets increased by S$3.8m as compared to 31 December 2022 mainly due to increase in cash and bank balances and trade receivables, which was partially offset by decrease in other receivables and inventories and disposal of financial assets at fair value through profit or loss.
Non-current assets
As at 31 December 2023, non-current assets amounted to S$66.2m or 52% of total assets. Noncurrent assets mainly comprise of property, plant and equipment and right-of-use assets. Total noncurrent assets decreased by S$1.7m as compared to 31 December 2022 mainly due to decrease in property, plant and equipment, partially offset by an investment in financial assets at fair value through other comprehensive income.
Current liabilities
As at 31 December 2023, current liabilities amounted to S$10.0m or 46% of total liabilities. Current liabilities mainly comprise of trade and other payables and current portion of lease liabilities. Total current liabilities increased by S$2.3m as compared to 31 December 2022, mainly due to increase in other payables, income tax payable and drawdown of new lease liabilities (hire purchase), offset by a decrease in bills payable.
Non-current liabilities
As at 31 December 2023, non-current liabilities amounted to S$11.7m or 54% of total liabilities. Non-current liabilities comprise of the non-current portion of lease liabilities and deferred tax. Total non-current liabilities decreased by S$1.6m as compared to 31 December 2022, mainly due to reversal of deferred tax liabilities.
Working Capital
As at 31 December 2023, the Group registered a positive working capital of S$51.7m as compared to that of S$50.1m as at 31 December 2022.
Equity
As at 31 December 2023, the Group's total equity stood at S$106.2m. Total equity increased by S$1.5m as compared to 31 December 2022, mainly due to fair value gain on financial assets at FVTOCI and profit generated for the year, partially offset against the purchase of treasury shares and payment of dividend.
Statement Of Cash Flows
The Group's net cash generated from operating activities in 12M FY2023 was S$10.7m. This comprised positive operating cash flows before changes in working capital of S$14.6m, adjusted by a decrease in net working capital flow of S$2.6m and income tax paid of S$1.3m.
Net cash from investing activities was S$2.7m in 12M FY2023. This was mainly due to the proceeds from disposal of property, plant and equipment of S$5.8m, proceeds from disposal of financial assets designated at fair value through profit or loss of S$1.8m and interest received of S$1.1m, offset by the cash outlay for the purchase of property, plant and equipment of S$5.5m and purchase of financial assets designated at fair value through other comprehensive income of S$0.5m.
Net cash used in financing activities was S$6.6m in 12M FY2023. This was mainly due to the dividend paid of S$4.0m, purchase of treasury shares of S$1.7m, repayment of bills payable of S$1.1m, repayment of lease liabilities of S$2.9m and interest expenses of S$0.2m, offset by drawdown of lease liabilities of S$3.3m.
Statements of Financial Position
