Financials
First quarter Financial Statements and Dividends Announcement for Year Ended 31 March 2012
Financials Archive
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Profit & Loss
Balance Sheet
Review of Performance
Financial Performance
The Group's Revenue for first quarter ended 31 March 2012 ("1Q-2012") of $23.2 million is comparable to that for the corresponding period last year. This revenue performance typifies a relatively slower first-quarter trend similar to that experienced in the prior year. Gross Profit and Gross Profit Margin were lesser than expected relative to the prior year - a result of different sales mix of higher lower-margin purchased materials than higher-margin labour content.
Other Income for the Group was higher compared to prior year due mainly to the gains from the disposal of quoted equity investment in 1Q-2012. While expenses were marginally higher than that in the prior year; the increase was managed to a lower than expected level. The management of spending coupled with gains from disposal of investments more than negate the lower gross profit impact. This resulted in the overall After Tax Profit to be higher compared to the prior year.
Financial Position
Net Assets for the Group of $83.22 million increased 4% quarter-to-quarter compared to $79.9 million as at the end of financial year 2011. The overall better cashflow for the Group from lower inventories and receivables, and proceeds from disposal of quoted equity assets resulted in higher cash holdings at the end of the period. This coupled with reduction in liabilities contributed to the increase in Net Assets for the period.
Cash Flow
Overall cashflow for the 1Q-2012 contributed positively to the cash balances for the Group compared to that of the corresponding period last year. This is due to the mix of investment and financing activities resulting in net cash used for investing activities in the prior year. There were no major activities in this area for the current period.
Others
There were no further development to the Marine Accomm case filed with Commercial Affairs Department as previously reported.
Commentary
Industry conditions for the marine sector are expected to remain challenging for the next few quarters. To address the challenges in this sector, the Group will re-focus on refurbishing and maintenance activities which the customers will be looking to extend the useful lives of vessels. In addition, the Group will continue its effort to aggressively pursue growth in the offshore sector which remained encouraging as well as its push towards the international and emerging markets.
Subsequent to 1Q-2012 quarter end, the Group continued to further dispose of its portfolio in quoted equity investment and this is expected to record gains on disposal in the second quarter of 2012.