Investor Relations - Financials
Unaudited Condensed Interim Financial Statements For The Six-Month And Full Year Ended 31 March 2024
Financials Archive
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Condensed interim consolidated statement of comprehensive income For the six-month and full year ended 31 March 2024
Condensed interim balance sheets As at 31 March 2024
REVIEW OF GROUP PERFORMANCE
Condensed Interim Balance Sheets
The changes in Balance Sheets were mainly due to:
- increase in property, plant and equipment of S$1,542,000;
- increase in right-of-use assets and lease liabilities of S$3,654,000 and S$3,628,000 respectively;
- increase in other investment by S$2,773,000; and
- decrease in bank borrowings
Apart from the above, movements in working capital items were mainly due to timing differences.
Condensed Interim Consolidated Cash Flow Statement
The Group recorded net cash inflows of S$7.3 million from operations for 2HFY2024, turning around the 1HFY2024's cash flows from operating activities to positive S$4.4 million year-to-date.
Within the investing activities, the Group spent about S$5.7 million (year-to-date: S$7.5 million) on capital expenditure mainly relating to the expansion into the UAE. This was partially offset by the net proceeds of S$4.0 million from the partial disposal of the MMA Shares as announced on 25 March 2024. Overall, cash and cash equivalents stood at about S$12.3 million as at 31 March 2024 (31 March 2023: S$13.6 million).
Condensed Interim Consolidated Statement of Comprehensive Income
6 months ended 31 March 2024 ("2HFY2024") vs 6 months ended 31 March 2023 ("2HFY2023")
The Group reported S$37.1 million revenue for 2HFY2024, a decrease of 23% year-on-year ("yoy") compared to S$47.9 million in 2HFY2023. The decrease primarily stemmed from the exceptional performance during the same period last year, fueled by the rapid expansion of drilling rigs in the Middle East. Additionally, the Group also had an irregular opportunity to retrofit certain rigs constructed in Singapore for deployment to the Middle East. While this bolstered the revenues for both Singapore and Bahrain in 2HFY2023, it has since normalized in FY2024. Despite the absence of this extraordinary circumstance, the Group delivered stable growth while improving profitability.
Compared to 2HFY2023, there was a considerable reduction in other operating expenses arising from the absence of Pandan Property related costs and relocation costs in 2HFY2024. Staff costs and finance costs did not vary significantly year on year. 2HFY2024 also saw minimal "exceptional" non-cash provisions and/or loss on liquidation of a subsidiary, resulting in slightly better overall PBT compared to the corresponding period a year ago.
During the period, the Group divested its loss-making Australian pipe-support business resulting in a modest gain on disposal of S$0.3 million. This gain, along with the results of the business, were presented within Loss from Discontinued Operation.
Overall, the Group recorded a net profit of S$1.8 million in 2HFY2024.
12 months ended 31 March 2024 ("FY2024") vs 12 months ended 31 March 2023 ("FY2023")
The Group reported S$73.7 million revenue for FY2024, a decrease of 9% year-on-year ("yoy") compared to S$81.4 million in FY2023. The decrease primarily stemmed from the exceptional performance during the same period last year, fueled by the rapid expansion of drilling rigs in the Middle East. Additionally, the Group also had an irregular opportunity to retrofit certain rigs constructed in Singapore for deployment to the Middle East. While this bolstered the revenues for both Singapore and Bahrain in FY2023, it has since normalized in FY2024. Despite the absence of this extraordinary circumstance, the Group delivered stable growth while improving profitability.
Compared to FY2023, there was a considerable reduction in other operating expenses arising from the absence of Pandan Property related costs and relocation costs in FY2024. Staff costs and finance costs did not vary significantly year on year. FY2024 also saw minimal "exceptional" non-cash provisions and/or loss on liquidation of a subsidiary, resulting in better overall PBT compared to the corresponding period a year ago.
During the year, the Group divested its loss-making Australian pipe-support business resulting in a modest gain on disposal of S$0.3 million. This gain, along with the results of the business, were presented within Loss from Discontinued Operation.
Overall, the Group recorded a full-year net profit of S$9.4 million, boosted by the S$5.4 million gain on disposal of Pandan Property, net of tax.
Commentary
The Group is delighted to announce another profitable year, with contributions from operations in both Bahrain and Singapore. Singapore recorded a strong finish and the Group is cautiously optimistic that this recovery will continue. Current overall utilization levels remain healthy and the general level of inquiries remains encouraging.
The recent divestment of the Group's loss-making Australian pipe-support business is part of the overall Group's wider strategy to streamline its operations allowing a more concentrated focus on growing its core businesses supporting drilling-related activities in the Middle East and Singapore.
The expansion into the UAE is progressing ‐ the Group has commenced the construction of the facility and is currently expected to be completed next year. Meanwhile, the Group will look to initiate preparatory measures to minimize delays to full operation in the UAE.