15
MTQ CORPORATION LIMITED
DIVIDENDS
No dividend has been proposed for the financial year
ended 31 March 2016 to maintain a strong balance
sheet and conserve cash in this challenging market
conditions.
CASH FLOWS
Despite the losses recorded during the year, the Group
generated operating cash flows of S$10.4 million.
The capital expenditure was S$7.8 million for the year.
Themost significant itemwas for S$4.0million being the
final tranche of consideration for the Binder acquisition.
Remaining capital expenditure was mainly related
to Welshpool relocation for Neptune and capability
enhancement for the Bahrain operation.
Within the financing activities, the Group paid S$3.1
million dividends with respect to FY2015 and had a
net repayment of S$14.9 million bank loans during the
year.
Overall, cash balances decreased by S$19.2 million to
S$25.0 million as at 31 March 2016.
FINANCIAL RESOURCES AND CAPITAL
STRUCTURE
Total bank borrowings and finance lease payables
decreased by 27% to S$44.1 million as at 31 March 2016,
while net debt position increased by 17% to S$19.1
million. Consequently, net gearing ratio increased from
10% to 14% during FY2016. Despite the increase, the
Group’s gearing level remains healthy.
The capital of the Company remained unchanged during
the financial year except for some shares being bought
back and subsequently deployed by the Company
pursuant to the MTQ Share Plan.
FINANCIAL
REVIEW
