Despite the unpredictable and challenging business landscape, which include factors like intensifying geopolitical tensions and rising inflation, the Group managed to improved our performance for FY2023, which was lifted by higher revenue and profitability from both the Trading business and Rental business.
As at 31 December 2023, the Group had a total fleet size of 465 units of cranes and aerial lifts, compared to a total fleet size of 373 units of cranes and aerial lifts as at 31 December 2022. The Group continues to update and rationalise our rental fleet to capture the market demand.
Financial Performance
For the financial year ended 31 December 2023, the Group has recorded revenue of $66.2 million (2022: $51.6 million) and a net profit of $8.0 million (2022: $3.7 million) while earnings per share was 7.12 cents (2022: 3.22 cents).
The Group's reported revenue and gross profit in FY2023 had increased compared to FY2022, mainly due to the increase level of activity in the Singapore operation as a result of the higher market demand. Gross profit margin for both business segments have also improved from FY2022 to FY2023.
Trading segment revenue and gross profit had increased, 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 year.
Equipment rental segment revenue and segment gross profit had increased, mainly due to improved contributions from the Singapore's operations.
Profit or Loss
Other operating income increased by 106.4% in FY2023, mainly due to the gain on disposal of property, plant and equipment and higher interest income earned during the year.
Selling expenses decreased by 17.0% in FY2023, mainly due to improved efficiency in sales process and streamlined operations, which have reduced the overall cost of selling.
Administrative expenses increased by 12.7% in FY2023, mainly due to increase in directors and staff related expenses and higher professional fees.
Other operating expenses increased by 207.2% in FY2023, mainly due to write off of property, plant and equipment and bad debts.
Finance costs increased by 185.9% in FY2023, mainly due to obtaining of additional hire purchase financing for the purchase of new cranes.
Financial Position
Current assets as at 31 December 2023 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 and disposal of financial assets at fair value through profit or loss.
Non-current assets as at 31 December 2023 had decreased mainly due to decrease in property, plant and equipment, partially offset by an investment in financial assets at fair value through other comprehensive income (FVOCI).
Current liabilities as at 31 December 2023 had increased 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 had decreased mainly due to reversal of deferred tax liabilities.
As at 31 December 2023, total equity increased by $1.5 million compared to prior year due to fair value gain on financial assets at FVOCI and profit generated for the year, partially offset against the purchase of treasury shares and payment of dividend.
As at 31 December 2023, the Group registered a positive working capital of $51.6 million as compared to that of $50.1 million as at 31 December 2022. The Group has managed to maintain its net cash position as at 31 December 2023.