Investor Relations - Financials

Unaudited Condensed Interim Financial Statements For The Six-Month Financial Period Ended 30 September 2023

Condensed interim consolidated statement of comprehensive income For the six-month financial period ended 30 September 2023

Condensed interim balance sheets As at 30 September 2023

REVIEW OF PERFORMANCE OF THE GROUP

Condensed Interim Balance Sheets

The changes in net assets were mainly due to:

1. net profit of S$7.6 million;
2. payment of S$1.1 million dividends in respect of previous financial year;
3. proceeds of S$1.3 million from the exercise of warrants pursuant to the Group's Right cum Warrants Issue;
4. S$1.1m fair value adjustments on Other Investment
5. completion of disposal of assets held for sale and liabilities directly associated with the assets held for sale; and
6. repayment of bank borrowings amounting to S$5.7 million to reduce interests.

Further information on certain balance sheet items can be found in notes 11 to 17. Apart from the above, the remaining changes in working capital items were mainly due to timing differences.

Condensed Interim Consolidated Cash Flow Statement

Cash wise, the Group recorded net cash inflows of S$4.3 million from operations while working capital changes was negative S$7.3 million, resulting in an overall negative cash used in operations. Within investing activities, the Group received the balance consideration of S$5.7 million following the completion of disposal of Pandan Property. The Group also made a voluntary repayment of bank borrowings totaling S$4.9 million during the period to reduce finance costs. Overall cash and cash equivalents stood at about S$8.6 million as at 30 September 2023 (31 March 2023: S$13.6 million).

Condensed Interim Consolidated Statement of Comprehensive Income

The Group reported S$37.7 million revenue for 1HFY2024, an increase of 8% year-on-year ("yoy") compared to S$34.9 million in 1HFY2023. Within the Group's revenue, Bahrain increased by 32.4% to S$18.4 million during the period. Our operations in Singapore, however, experienced a decrease for the period. This was partly affected by the final stages of our relocation process (from Pandan Property), while the remainder can be ascribed to the natural ebb and flow of order conversion. Inquiries remain robust and the Group are committed to optimizing utilization wherever possible.

On 13 July 2023, the Group completed the disposal of Pandan Property resulting in S$6.4 million gain on disposal of Pandan Property (recognized within Other Income). Other operating expenses included S$0.3 million relocation costs and lower FOREX gain (by S$0.2 million). Excluding these, the Group's operating costs increased by about 12% during the period. Finance costs were also higher than in the corresponding period a year ago.

Overall, the Group recorded a net profit of S$7.6 million in 1HFY2024, an increase of 342% yoy mainly due to the gain on disposal of Pandan Property. Excluding this, the net profit would have been S$1.2 million, showing a yoy decrease attributable to an elevated cost environment despite modest growth in the toplines.

Commentary

Drilling activities continue to increase especially in the Middle East, inquiries remain healthy but conversion into revenues in Singapore was slower in the period. Costs have also risen due to inflationary economic conditions. Nonetheless, the Group anticipate the costs environment to stabilize moving forward.