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14
ANNUAL REPORT
FY2013/2014
FINANCIAL REVIEW
REVENUE FOR FY2014
TOTAL ASSETS AS AT 31 MARCH 2014
S$103.8 MILLION
S$313.3 MILLION
S$271.4 MILLION
GROSS PROFIT IN FY2014
REVENUE
In the fnancial year ended 31 March 2014 (“FY2014”),
the Group recorded revenue of S$313.3 million, an
increase of S$104.6 million or 50% from S$208.7 million
in the fnancial year ended 31 March 2013 (“FY2013”).
The growth in revenue was mainly driven by full
year contribution from Neptune Marine (“Neptune”)
and organic growth within the Oilfeld Engineering
segment.
TheOilfeld Engineering recorded an increase in revenue
to S$104.6 million in FY2014. This is attributed to
incremental growth within the segment with increased
activity levels in Bahrain, as well as contributions from
the newly acquired Binder Group in the last quarter of
the fnancial year.
The Engine Systems division, on the other hand,
recorded a decrease in revenue of 11% to S$48.9 million,
hampered by the depreciation of the Australian Dollars
and weaker demand.
PROFIT
Overall gross proft grew by 42% to S$103.8 million in
FY2014. While Oilfeld Engineering recorded an increase
its gross proft margins, the inclusion of Neptune
lowered the overall Group’s gross proft margin to
33% from 35% in FY2013. Gross proft margin from the
Engine Systems division was relatively consistent with
FY2013.
Excluding the one-off accounting adjustment relating to
the acquisition of Neptune in FY2013, staff costs and
other operating expenses of the Group increased mainly
due to the full year contribution by Neptune. Together
as a percentage of revenue, they remained at 23% of the
Group’s revenue.
Finance costs increased by 88% to S$2.9 million in
FY2014 mainly due to bank borrowings obtained for the
fnancing of Neptune’s acquisition in late FY2013.
In line with higher gross profts, the Group posted a
47% increase in pre-tax proft of S$30.3 million (FY2013:
S$20.6 million) in FY2014.
Taxation expense in FY2014 increased by 35% to S$5.4
million from FY2013. The Group’s effective tax rate of
18% (FY2013: 19%) has remained relatively consistent
with FY2013 mainly due to tax incentives under the
Productivity Innovation Credit Scheme and tax benefts
arising from Neptune’s unutilised tax losses for its
Australian operations.
EARNINGS PER SHARE
Basic earnings per share for FY2014was 19.19 Singapore
cents, 46% higher than FY2013 due to the higher Group
proft recorded in FY2014.
BALANCE SHEET
Total assets for the Group were S$271.4 million as at
31 March 2014, an increase of 6%. Net assets increased
by S$19.8 million or 16% to S$140.6 million compared
with FY2013.
Non-current assets increased by S$20.7 million from
S$103.3 million to S$124.0 million mainly due to
the acquisition during the year. The acquisition of
Binder Group resulted in an increase in goodwill and
investment in joint venture of S$13.8 million and S$2.3
million respectively.
The Group’s total liabilities amounted to S$130.8
million, a decrease of 4% or S$5.4 million from FY2013.