Page 12 - ar2012

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MTQ Corporation Limited
Financial Review /
staf costs and other operating expenses
of the Group increased mainly due to the
enlarged Group operations resulting from
acquisitions made during FY2012 and second
quarter of FY2011.
Included in FY2012 other operating expenses
of the Oilfeld Engineering division were an
allowance for doubtful debts of S$0.7 million
and amortisation of customer contracts
of S$0.6 million. In contrast, reversal of
allowance for doubtful debts and gain on
disposal of leasehold land and buildings,
amounting to S$1.1 million and S$0.7 million
respectively, were recorded in FY2011.
Excluding these one-of items, operating
proft in FY2012 would have been S$16.3
million, 39% increase from FY2011.
Finance costs increased by 326% to S$1.1
million in FY2012 due to the increase in bank
borrowings to fnance the acquisition made
during the year.
Taxation expenses included a write-back of
$3.4 million of tax provision upon fnalisation
of the tax afairs of a subsidiary.
EARNINGS PER SHARE
Basic earnings per share for FY2012 were
16.3 Singapore cents, 35% higher than
FY2011 due to the higher Group proft
recorded for FY2012.
BALANCE SHEET
The main changes to the Group’s Balance
Sheet were the result of the acquisitions
made during the year.
Total assets of the Group were S$164.0
million as at 31 March 2012, an increase of
24% or S$31.5 million. Net assets increased
by S$8.4 million or 11% to S$86.1 million
compared with FY2011.
Non-current assets increased by S$15.5
million from S$67.8 million to S$83.3 million.
The increase in goodwill, as well as property,
plant and equipment, were mainly due to the
acquisition of the Premier Group. Available-
for-sale fnancial assets increased by S$0.9
million, refecting the net efect of additional
Neptune Marine Services Limited shares
acquired and its fair value adjustments
during the year.
Despite the additional working capital
required for the Premier Group, net current
assets decreased by 27% to S$26.9 million.
The decrease was mainly due to a short term
borrowing taken up for the acquisition of
Premier Group and net increase in current
portion of the long-term borrowings totalling
S$20.9 million.
Non-current liabilities decreased by S$3.1
million primarily due to the reclassifcation
of non-current portion of bank borrowings to
current liabilities.
Shareholders’ funds stood at S$86.7 million
as at 31 March 2012, an increase of S$8.4
million or 10.7% compared to 31 March 2011.
DIVIDENDS
The Board of Directors is recommending
a tax-exempt (one-tier) fnal dividend of
2.0 Singapore cents to be paid for FY2012.
Subject to shareholders’ approval for
REVENUE
The Group reported revenue of S$128.4
million for the fnancial year ended 31 March
2012 (“FY2012”), an increase of S$36.7 million
or 40% from S$91.7 million achieved for the
fnancial year ended 31 March 2011 (“FY2011”).
Both the Oilfeld Engineering division and the
Engine Systems division contributed to the
revenue growth.
The Oilfeld Engineering division recorded
73% increase in revenue to S$74.1 million
in FY2012 primarily due to the inclusion of
results from the newly acquired Premier Sea
& Land Limited and its subsidiaries (“Premier
Group”). Commencement of operations
by the Bahrain facility also made a modest
contribution to the overall division revenue
while the facility based in Pandan Loop
recorded a modest growth.
The Engine Systems division recorded
growth in revenue of S$5.1 million or 10%,
mainly driven by organic growth and the
full-year consolidation of results from the
acquisitions made during the second quarter
of FY2011.
PROFIT
Gross proft for the Group increased by 25%
to S$47.0 million. Gross proft margin from
the Oilfeld Engineering division decreased
due to a shif in product mix and start-up
costs in Bahrain. Gross proft margin from
the Engine Systems division was relatively
consistent with that in FY2011.
Apart from infationary rises, underlying
S$128.4 million S$47.0 million S$164.0 million
REVENUE FOR FY2012 GROSS PROFIT IN FY2012 TOTAL ASSETS AS
AT 31 MARCH 2012
FINANCIAL
REVIEW