Amid the challenging business landscape, including persistent geopolitical tensions and inflationary pressures, the Group experienced a decline in overall revenue and gross profit for FY2024, driven by weaker performance in the Trading business. However, the Rental business showed resilience, with its gross profit increasing by 13.0% as compared to FY2023.
As at 31 December 2024, the Group had a total fleet size of 452 units of cranes and aerial lifts, compared to a total fleet size of 465 units of cranes and aerial lifts in FY2023. The Group continues to strategically manage and optimise our rental fleet to meet market demand.
Financial Performance
For the financial year ended 31 December 2024, the Group has recorded revenue of $50.2 million (2023: $66.2 million) and a net profit of $6.3 million (2023: $8.0 million) while earnings per share was 5.75 cents (2023: 7.12 cents).
The Group's reported revenue and gross profit in FY2024 had decreased compared to FY2023, mainly due to the reduced level of activity in the Malaysia's operation. While the gross profit margin for the trading segment decreased, the equipment rental segment saw an improvement from FY2023 to FY2024.
Trading segment revenue and gross profit had decreased, mainly due to the reduction in the number of equipment sold during the periods.
Equipment rental segment revenue had decreased but its gross profit had increased, mainly due to improved contribution as the result of different product mix offered to customers.
Profit or Loss
Other income decreased by 34.9% in FY2024, mainly due to the lower gain on disposal of property, plant and equipment in the current year.
Selling expenses increased by 13.1% in FY2024, mainly due to sales commission.
Administrative expenses decreased by 2.5% in FY2024, mainly due to decrease in directors and staff related expenses and lower professional fees.
Other operating expenses decreased by 46.3% in FY2024, mainly due to lower bad debts written off and provisions, and lower property, plant and equipment written off.
Finance costs remained constant in current year as compared to previous financial year.
Financial Position
Current assets as at 31 December 2024 had increased mainly due to increase in cash and bank balances and trade receivables, which was partially offset by decrease in other receivables and inventories.
Non-current assets as at 31 December 2024 had decreased mainly due to depreciation of property, plant and equipment and right-of-use assets, partially offset by fair value gain in financial assets at fair value through other comprehensive income and an investment in other assets.
Current liabilities as at 31 December 2024 had decreased mainly due to decrease in other payables, lease liabilities and income tax payable.
Non-current liabilities as at 31 December 2024 had decreased mainly due to repayment of lease liabilities.
As at 31 December 2024, total equity increased by $1.3 million compared to prior year mainly due to profit for the year and fair value gain on financial assets at FVTOCI, partially offset by dividend payment and share buyback.
As at 31 December 2024, the Group registered a positive working capital of $56.4 million as compared to that of $51.6 million as at 31 December 2023. The Group has managed to maintain its net cash position as at 31 December 2024.