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FINANCIAL REVIEW
MTQ Corporat ion Limi ted Annual Repor t 2012/13 12
REVENUE
In the financial year ended 31 March 2013 (“FY2013”),
the Group recorded revenue of S$208.7 million, an
increase of S$80.4 million or 63% from S$128.4 million
in the financial year ended 31 March 2012 (“FY2012”).
This was mainly due to organic growth in all business
segments and further boosted by contributions from a
newly acquired subsidiary, Neptune, as well as full year
recognition of subsidiaries acquired in FY2012.
The Oilfield Engineering division continued to be the
highest contributor to Group revenue for FY2013,
recording a 28% increase in revenue to S$94.7 million
in FY2013. This is attributed to organic growth in the
division, as well as full year recognition of the financial
results of the Premier Group in FY2013, as compared to
nine months in FY2012. The Engine Systems division
recorded S$55.2 million in revenue in FY2013, an
increase of 1% from FY2012.
PROFIT
The Group’s gross profit increased by 55% to S$73.0
million in FY2013. Gross profit margin decreased to
35% in FY2013 from 37% in FY2012 due to changes
in product mix since the acquisition of Neptune. Gross
profit margins from the Oilfield Engineering and Engine
Systems divisions were relatively consistent with those
recorded in FY2012.
Apart from inflationary rises, staff costs and other
operating expenses of the Group increased mainly due
to the enlarged Group operations resulting from the
acquisition made in FY2013.
In keeping to the Group’s cost control measures, other
operating expenses of S$19.9 million declined as a
percentage of revenue at 10% (FY2012: 12%) in FY2013
and staff costs made up of 13% (FY2012: 14%) of
revenue.
Finance costs increased by 41% to S$1.5 million in
FY2013 due to increase in bank borrowings to finance
the acquisition made during the year.
Due to higher revenues and slower rate of increase in
expenses, the Group posted a 94% increase in pre-
tax profit to S$27.0 million (FY2012: S$13.9 million) in
FY2013.
Included in FY2012 taxation expense was a write-back of
tax provision of S$3.4 million which arose as a result of
the fnalisation of the tax affairs of a subsidiary. Excluding
such one-off item in FY2012, taxation expense in FY2013
increased by 52% to S$4.0 million from FY2012.
EARNINGS PER SHARE
Basic earnings per share for FY2013 was 23.06
Singapore cents, 41% higher than FY2012 due to the
higher Group profit recorded in FY2013.
BALANCE SHEET
The main changes to the Group’s net assets resulted
from the acquisition made during FY2013.
Total assets for the Group were S$268.1 million as at 31
March 2013, an increase of 63% or S$104.0 million. Net
assets increased by S$45.6 million or 53% to S$131.8
million compared with FY2012.
Non-current assets increased by S$31.0 million from
S$83.3 million to S$114.3 million. The increase in
intangible assets, deferred tax assets, as well as
property, plant and equipment of S$47.6 million were
mainly due to the acquisition of Neptune. These
increases were offset by a decrease in available-for-
sale financial assets of S$18.0 million, mainly resulting
from the acquisition of Neptune which was previously
classified as an available-for-sale financial asset.