REVENUE
FOR FY2015
TOTAL ASSETS
AS AT MARCH 2015
S$92.7
MILLION
S$295.6
MILLION
S$256.4
MILLION
GROSS PROFIT
IN FY2015
REVENUE
In the financial year ended 31 March 2015 (“FY2015”),
the Group recorded revenue of S$295.6 million. The
decrease of revenue by S$17.7 million or 6% from
S$313.3 million in the financial year ended 31 March
2014 (“FY2014”) was a result of the decline from all
business segments.
Oilfield Engineering segment included the full-year
contribution from Binder Group that was acquired
in January 2014. Singapore’s operations recorded a
significant decline in FY2015 as activities slowed down
due to the much weaker demand amid the oil rout
situation compared to FY2014. Revenue from Bahrain,
on the other hand, has almost doubled from FY2014.
Neptune segment recorded lower revenue in FY2015
in the absence of diving campaigns that boosted the
segment’s revenue in FY2014.
The Engine Systems division recorded 3% lower
revenue from FY2014, hampered by the depreciation of
the Australian Dollars.
PROFIT
Overall gross profit decreased by 11% to S$92.7 million
in FY2015, due to lower revenue, and reduction in
overall gross profit margin narrowing slightly from 33%
to 31%.
The Group recorded goodwill impairment of S$6.8
million during the year relating to the businesses in
Binder Group and Engine Systems. Excluding this
accounting loss and the full-year recognition of Binder
Group’s expenses, operating costs for FY2015 in most
operating units were lower than FY2014.
Finance costs decreased by 17% to S$2.4 million in
FY2015 as the Group reduced its bank borrowings.
Weaker Australian dollars also helped in the reduction
of finance costs in FY2015.
The Group posted a 69% decrease in pre-tax profit
to S$9.2 million (FY2014: S$29.9 million) in FY2015.
Excluding the goodwill impairment, the Group’s pre-tax
profit would have been S$16.0 million, S$13.9 million or
46% lower than FY2014.
As a result of the lower profits, taxation expense in
FY2015 decreased to S$3.7 million.The Group’s effective
tax rate, excluding the goodwill impairment, was 23%
(FY2014: 18%). The increase in the effective tax rate was
mainly due to the lower proportion of profits from the
Singapore operations, where tax rates are generally
lower than most of the other countries where the Group
operates in.
EARNINGS PER SHARE
Basic earnings per share for FY2015 was 3.27 Singapore
cents. Excluding the goodwill impairment, it would
have been 7.73 Singapore cents, down by 51% from 15.8
Singapore cents in FY2014.
BALANCE SHEET
Total assets for the Group were S$256.4 million as at
31 March 2015, a decrease of 5%. Net assets decreased
by S$2.0 million or 1% to S$138.4 million compared to
FY2014.
Non-current assets decreased by S$10.6 million from
S$123.9 million to S$113.3 million mainly due to the
goodwill impairment and currency realignments.
14
FINANCIAL
REVIEW
