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Consolidated Statement of Profit or Loss and Other Comprehensive Income
Review of Performance
Income Statement
Revenue
The Group registered a total revenue of S$23.9 million in 1H FY2024, which was 31.1% lower than 1H FY2023. The decrease was mainly due to lower revenue generated in Trading business.
Revenue from Equipment Rental business increased by 3.6% to S$15.8 million in 1H FY2024 as compared to 1H FY2023. The increase was mainly due to improve contribution from our Singapore operations.
Revenue from Trading business decreased by 58.2% to S$8.1 million in 1H FY2024 as compared to 1H FY2023. The overall decrease was mainly due to decrease in the number of equipment sold during the period.
Gross Profit
The Group registered a total gross profit of S$8.8 million in 1H FY2024 which was 3.3% lower than 1H FY2023. The decrease was mainly due to lower revenue generated in Trading business, resulting in lower gross profit in 1H FY2024, and was partially offset by an improved contribution from Equipment Rental business.
The Group registered a gross profit of S$6.1 million from Equipment Rental business in 1H FY2024, which was 29.2% higher than 1H FY2023. The significant increase in Equipment Rental business gross profit was due to the increase in revenue, and lower associated costs due to the results of the Group's effort to rationalise its equipment rental fleet in prior periods.
The Group registered a gross profit of S$2.8 million from Trading business in 1H FY2024, which was 37.7% lower than 1H FY2023. The overall decrease was mainly due to decrease in trading revenue and different product mix sold.
Other Operating Income
Other operating income decreased by S$0.07 million in 1H FY2024 as compared to 1H FY2023. The decrease was mainly due to the lower gain on disposal of property, plant and equipment during the period, and was partially offset by higher interest income.
Selling Expenses
Selling expenses increased by S$0.07 million in 1H FY2024 as compared to 1H FY2023. The increase was mainly due to sales commission payment.
Administrative Expenses
Administrative expenses have largely remained flat in 1H FY2024 compared to 1H FY2023 with a marginal decrease of S$0.04 million.
Other Operating Expenses
Other operating expenses decreased by S$0.17 million in 1H FY2024 as compared to 1H FY2023. The decrease was mainly due to the absence of bad debts provision, bad debts written off, and fair value loss for financial assets at fair value through profit or loss in current period.
Finance Costs
Finance costs has largely remained flat in 1H FY2024 compared to 1H FY2023 with a marginal increase of S$0.01 million.
Income Tax Expense
The Group recorded an income tax expense in 1H FY2024, mainly due to provision of current tax expenses for the period ended 30 June 2024.
Statement Of Financial Position
Current assets
As at 30 June 2024, current assets amounted to S$58.4 million or 48% of total assets. Current assets mainly comprise of cash and bank balances, trade and other receivables and inventories. Total current assets decreased by S$3.2 million as compared to 31 December 2023 mainly due to decrease in cash and bank balances, trade receivables and inventories, which was partially offset by increase in other receivables.
Non-current assets
As at 30 June 2024, non-current assets amounted to S$63.5 million or 52% of total assets. Noncurrent assets mainly comprises of property, plant and equipment and right-of-use assets. Total non-current assets decreased by S$2.8 million as compared to 31 December 2023 mainly due to depreciation charged for the period.
Current liabilities
As at 30 June 2024, current liabilities amounted to S$7.7 million or 43% of total liabilities. Current liabilities mainly comprise of trade and other payables, current portion of lease liabilities and income tax payable. Total current liabilities decreased by S$2.2 million as compared to 31 December 2023, mainly due to decrease in trade and other payables and current portion of lease liabilities.
Non-current liabilities
As at 30 June 2024, non-current liabilities amounted to S$10.4 million or 57% of total liabilities. Non-current liabilities comprises of the non-current portion of lease liabilities and deferred tax liabilities. Total non-current liabilities decreased by S$1.3 million as compared to 31 December 2023, mainly due to decrease in non-current portion of lease liabilities.
Working Capital
As at 30 June 2024, the Group registered a positive working capital of S$50.7 million as compared to that of S$51.6 million as at 31 December 2023.
Equity
As at 30 June 2024, the Group's total equity stood at S$103.8 million. Total equity decreased by S$2.4 million as compared to 31 December 2023, mainly due to payment of dividend, and was partially offset against profit for the period.
Statement Of Cash Flows
The Group's net cash generated from operating activities in 1H FY2024 was S$5.3 million. This comprised positive operating cash flows before changes in working capital of S$6.7 million, and increase in net working capital flow of S$1.0 million and offset by the purchase of property, plant and equipment for rental use of S$1.7 million and income tax payment of S$0.7 million.
Net cash used in investing activities was S$14.7 million in 1H FY2024. This was due to the additions to fixed deposits with maturity of more than 3 months of S$15.2 million and cash outlay for the purchase of property, plant and equipment of S$0.3 million, offset by the proceeds from disposal of property, plant and equipment of S$0.1 million and interest received of S$0.7 million.
Net cash used in financing activities was S$7.5 million in 1H FY2024. This was mainly due to the dividend paid of S$5.5 million, payment of lease liabilities of S$1.5 million and purchase of treasury shares of S$0.5 million.
Commentary On Current Year Prospects
Generally, the business environment where the Group operates in continues to remain challenging and uncertain due to geopolitical tensions, persistent cost pressures, supply chain disruption, as well as volatile foreign exchange.
Notwithstanding the above-mentioned, the Group maintains a positive outlook for its operations in Singapore due to the Government's ongoing projects such as the construction of MRT lines, infrastructure works for Changi Airport Terminal 5 and Tuas Port as well as other major road enhancement and drainage improvement works. The Malaysian operations are anticipated to remain challenging and the Group is now focusing on the trading business in Malaysia.
The Group will continue to maintain a prudent cash management strategy while it actively pursues other business opportunities that align with its long-term strategies.
Condensed Interim Statements of Financial Position
