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Financials

Third Quarter ended 30 September 2016 Financial Statement And Dividend Announcement

Financials Archive

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Income Statement

Income Statement

Balance Sheet

Balance Sheet

Review of Group's performance

Revenue & Profitability

The Group's revenue declined for 3Q2016 to $67.5 million (3Q2015: $74.7 million) and for 9M2016 to $202.7 million (9M2015: $244.3 million), correspondingly the Group registered lower Gross Profit for both 3Q2016 and 9M2016 as compared to corresponding periods for year 2015.

Challenging market condition in particular the marine sector had resulted in the Group registering a further impairment charge of $2.1 million in 3Q2016 for its leasehold property under the Marine Segment. Impairment losses coupled with declining revenue and gross profit resulted in the Group's net loss position of $2.4 million for 3Q2016 (3Q2015: loss of $9.8 million) and $14.0 million for 9M2016 (9M2015: loss of $7.6 million) respectively.

Financial Resources

The Group registered positive operating cash flow for 3Q2016 and 9M2016 and an improvement in cash generated from operations through prudence and effective working capital management. Improvement in operation cash flow enable the Group to reduce its total bank borrowings to $28.4 million as at 30 September 2016 (31 December 2015: $64.6 million).

As at 30 September 2016, the Group maintained a cash balance of $17.8 million and positive net working capital position of $26.4 million with a healthy current ratio of 1.3 (2015: 1.2) and net debt to equity ratio of 0.2 (2015:0.6).

The Group has sufficient financial resources (including existing available banking facilities) to fund its operations and capital expenditure requirements for the next 12 months.

Commentary

The Group expects uncertainty in policies post USA election coupled with volatile currency, will continue to affect the sluggish world economy. It is unlikely the market relevant to the Group will show any significant improvement in the near future. The management will continue to review the processes to optimize efficiencies, exercise prudence over cost control and working capital management.