14
ANNUAL REPORT 2015/2016
REVENUE
In the financial year ended 31 March 2016 (“FY2016”),
the Group recorded revenue of S$221.8 million. The
decrease in revenue by S$73.8 million or 25% from
S$295.6 million recorded in financial year ended 31
March 2015 (“FY2015”) was a result of declines for all
business segments.
Oilfield Engineering segment suffered the most decline
with the slow down in activity particularly in South East
Asia. Revenue from Bahrain, on the other hand, held up
well as the Group continues to improve and expand the
capabilities there. While the Group have been successful
in winning several pipe support projects, project
deferrals and depreciation of the Australian Dollars
have led to lower revenue from Binder compared to
that in FY2015.
Revenue from most of the business units within the
Neptune segment was relatively stable. However, the
decline of revenue from the Diving and Asset Integrity
divisions as well as the depreciation of the Australian
Dollars resulted in lower revenue for the segment as a
whole.
The Engine Systems division recorded slightly lower
revenue in FY2016, hampered by the depreciation of the
Australian Dollars.
PROFIT
Overall gross profit decreased by 41% to S$54.7 million
in FY2016, in line with lower revenue, with gross profit
margin narrowing from 31% to 25%.
During the year, the Group recorded S$2.6 million
income arising from insurance claims for certain assets
which were damaged or lost during operations. The
total carrying value of these assets of S$0.6 million
were written-off correspondingly.
In light of the continual depressed market conditions,
the Group has taken impairment charges in Binder’s
goodwill, intangible assets and the ROVs. Excluding
these accounting losses, operating costs for FY2016 has
decreased as the Group operated with a tighter budget
and reduced headcount.
Finance costs decreased by 14% to S$2.1 million in
FY2016 mainly due to lower borrowings and weaker
Australian Dollars.
Overall, the Group recorded a pre-tax loss of S$22.8
million (FY2015: profit of S$9.2 million) in FY2016.
Excluding the impairments, the Group’s pre-tax losses
would have been S$9.8 million (FY2015: profit of S$16.0
million).
The Group recorded a tax credit of S$3.4 million largely
due to the recognition of deferred tax assets arising
from the losses during the year.
EARNINGS PER SHARE
Basic losses per share for FY2016 was 11.97 Singapore
cents. Excluding the impairments, basic losses per
share would have been 4.35 Singapore cents.
BALANCE SHEET
Net assets decreased by S$25.0million or 18% to S$113.4
million, with impairments in goodwill, intangible assets
and ROVs accounted for about S$12.9 million of the
decrease.
Apart from the impairments, the decrease in non-current
assets was mainly due to the disposal of certain diving
assets augmented by the increase in deferred tax assets
arising mainly from the tax losses during the year.
During the year, theGroup repaid a total of S$19.9million
bank borrowings by deploying some of the internal cash
resources to reduce interest expenses. The Group also
refinanced part of its borrowings resulting in longer
debt maturity profile. Including the effect of exchange
rate movements, total bank borrowings decreased from
S$59.6 million to S$43.6 million as at 31 March 2016.
Overall, shareholders’ funds amounted to S$105.7
million as at 31 March 2016, a decrease of 18% inclusive
of the net translation loss of S$2.0 million arising from
translation of foreign subsidiaries.
FINANCIAL
REVIEW
