MTQ Corporation Limited

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Half Year Financial Statement And Dividend Announcement

BackNov 30, 2001

Half-year financial statement on consolidated results for the six months ended 30 September 2001.
These figures have not been audited.

- -
Group
Company
-- --
S$'000
%
S$'000
%
- -
30/9/2001
30/9/2000
Restated (#)
Change
30/9/2001
30/9/2000
Restated (#)
Change
1.(a) Turnover
21,292
26,769
(20.5)
1,681
6,019
(72.1)
1.(b) Investment income
0
6
NM
0
2
NM
1.(c) Other income including interest income
145
82
76.8
27
135
(80.0)
2.(a) Operating profit before income tax, minority interests, extraordinary items, interest on borrowings, depreciation and amortisation, foreign exchange (loss)/gain and exceptional items
2,042
2,278
(10.4)
373
1,081
(65.5)
2.(b)(i) Interest on borrowings
(183)
(223)
(17.9)
(12)
(31)
(61.3)
2.(b)(ii) Depreciation and amortisation
(957)
(1,181)
(19.0)
(344)
(688)
(50.0)
2.(b)(iii) Foreign exchange (loss)/gain
(87)
39
NM
(10)
16
NM
2.(c) Exceptional items
(217)
0
NM
(1,404)
0
NM
2.(d) Operating profit/(loss) before income tax, minority interests and extraordinary items but after interest on borrowings, depreciation and amortisation, foreign exchange (loss)/gain and exceptional items
598
913
(34.5)
(1,397)
378
NM
2.(e) Income derived from associated companies
0
0
0
0
0
0
2.(f) Less income tax
(442)
(373)
18.5
0
0
0
2.(g)(i) Operating profit/(loss) after tax before deducting minority interests
156
540
(71.1)
(1,397)
378
NM
2.(g)(ii) Less minority interests
79
13
507.7
0
0
0
2.(h) Operating profit/(loss) after tax attributable to members of the company
235
553
(57.5)
(1,397)
378
NM
2.(i)(i) Extraordinary items
0
0
0
0
0
0
2.(i)(ii) Less minority interests
0
0
0
0
0
0
2.(i)(iii) Extraordinary items attributable to members of the company
0
0
0
0
0
0
2.(i)(iv) Transfer to/from Exchange Reserve
0
0
0
0
0
0
2.(i)(v) Transfer to Capital Reserve
0
0
0
0
0
0
2.(i)(vi) Transfer to Reserve Fund
0
0
0
0
0
0
2.(j) Operating profit/(loss) after tax and extraordinary items attributable to members of the company
235
553
(57.5)
(1,397)
378
NM


Notes:

(#) Prior year adjustment arises from the implementation of the new SAS 17 (Employee Benefits). With effect from 1 April 2001, accrual was made for unconsumed annual leave on an earned basis instead of on a consumed basis. This change in accounting policy has the effect of reducing current year's Group and Company profit before tax by about S$0.02m and S$0.01m respectively. The accumulative change for prior years has been made against opening revenue reserves of the Group and the Company by approximately S$0.18m and S$0.04m respectively.

NM - Not Meaningful

Group Figures
30/9/2001
30/9/2000
Restated (#)
3.(a) Earnings per share based on 2(h) above after deducting any provision for preference dividends:-
.
.
3.(a)(i) Based on existing issued share capital
0.30 cents
0.70 cents
3.(a)(ii) On a fully diluted basis
0.29 cents
NA
3.(b) Earnings per share based on 2(j) above:-
(i) Based on existing issued share capital
0.30 cents
0.70 cents
(ii) On a fully diluted basis
0.29 cents
NA
3.(c) Net tangible asset backing per ordinary share
33.64 cents
32.36 cents




4.(a) Amount of any adjustment for under or overprovision of tax in respect of prior years

       

      NIL


4.(b) Amount of any pre-acquisition profits

    NIL



4.(c) Amount of profits on any sale of investments and/or properties


     

    Sale of investments/properties
    $Profit/(Loss)
    Profit on sale of quoted equity investment
    $1,800.00










4.(d) Any other comments relating to Paragraph 4

       

    NIL

5.(a) Review of the performance of the company and its principal subsidiaries

       

    The Company became an investment holding company providing various corporate services to the Group with effect from 1 April 2001. It registered a turnover of S$1.68m from management fees and rental income compared to a turnover of S$6.02m from operations in the previous half year. The loss before tax of S$1.40m compared to a profit before tax of S$0.38m in the previous half year was due to the exceptional items of S$1.40m relating mainly to a provision for diminution in the value of the Company's investment in its Foundry operations in Metalock Castings Sdn Bhd which ceased operations in June 2001.

    The Group's turnover for the six months declined 20.5% from the previous half year to S$21.29m following the disposal of its Trading business (Aqua-Terra Supply Co. Pte Ltd) in March 2001.

    Notwithstanding the above, performance of the Group's Oilfield division continued to improve in the current year. In addition, MTQ Subsea Technology Pte Ltd (formerly known as Osea Investments Pte Ltd), incorporated in the previous year, started contributing to the Group's turnover with the launch of its first two eyeball remotely operated subsea vehicles (ROVs) in May/June 2001.

    The Group's net profit after tax and minority interests of S$0.24m was lower compared to a profit of S$0.55m in the previous half year due to lower contribution from the Group's Australian operations and the following non-recurring charges:

    1. A loss of S$0.29m recorded by MTQ Subsea Technology Pte Ltd mainly due to start-up costs associated with its ROV operations in the United Kingdom and unfavourable exchange rate movements; and

    2. Exceptional items of S$0.22m arising from retrenchment costs.

    The taxation of S$0.44m corresponds to the improved performance of the Group's Oilfield division which could not be set-off against the losses of some of the Group's other subsidiaries.


5.(b) A statement by the Directors of the Company on whether "any item or event of a material

    or unusual nature which would have affected materially the results of operations of the
    Group and Company has occurred between the date to which the report refers and the
    date on which the report is issued". If none, to include a negative statement.

       

    In the opinion of the Directors, no item, transaction or event of a material or unusual nature has arisen in the interval between 30 September 2001 and the date of this announcement that would materially affect the results of the Company and the Group.


6. Commentary on current year prospects

       

    Competition in the marine industry is unlikely to ease in the foreseeable future. Inspite of the cost cutting measures put in place which would generate benefits for the marine operations, the Group will continue to leverage on its engineering capabilities with less reliance on the marine sector.

    Positive contributions from the Oilfield and Australian operations are expected to continue in the second half-year. MTQ Subsea Technology Pte Ltd launched its first work-class ROV on 30 November 2001 and the ROV is expected to be deployed in early 2002.

    With the absence of further losses from the Foundry operations, and barring unforeseen circumstances, the Group is expected to perform better in the second half of the financial year.

7. Dividend

    (a) Any dividend declared for the present financial period? None
    (b) Any dividend declared for the previous corresponding period? None


(c) Date payable

      NIL




(d) Books closing date

      Nil




(e) Any other comments relating to Paragraph 7

      NIL

8. Details of any changes in the company's issued share capital

       

      There has been no changes in the Company's issued share capital.

9. Comparative figures of the group's borrowings and debt securities

(a) Amount repayable in one year or less, or on demand

      As at 30/9/2001
      As at 31/3/2001
      Secured
      Unsecured
      Secured
      Unsecured
      S$'000
      3,242
      S$'000
      -
      S$'000
      1,203
      S$'000
      1,857



(b) Amount repayable after one year

      As at 30/9/2001
      As at 31/3/2001
      Secured
      Unsecured
      Secured
      Unsecured
      S$'000
      2,032
      S$'000
      -
      S$'000
      2,666
      S$'000
      -



(c) Any other comments relating to Paragraph 9

      NIL

10. Balance sheet

Group
Company
30.9.2001
31.3.2001
Restated (#)
30.9.2001
31.3.2001
Restated (#)
S$'000
S$'000
S$'000
S$'000
Share Capital
19,800
19,800
19,800
19,800
Share Premium Account
1,944
1,944
1,944
1,944
Reserves
4,895
4,672
13,531
14,928
Share capital & reserves
26,639
26,416
35,275
36,672
Minority interests
958
309
-
-
Capital employed
27,597
26,725
35,275
36,672
Represented by:
Non current assets
Fixed assets
17,426
17,996
4,801
6,698
Investments
517
390
26,515
28,152
Other receivables
516
368
204
250
18,459
18,754
31,520
35,100
Current Assets
24,336
26,704
4,846
6,301
Term loans & overdraft
(3,242)
(3,060)
-
(1,230)
Other current liabilities
(9,805)
(12,857)
(1,091)
(3,499)
Net current assets
11,289
10,787
3,755
1,572
Term loans
(2,032)
(2,666)
-
-
Hire Purchase creditors
(119)
(150)
-
-
Non-current liabilities
(2,151)
(2,816)
-
-
Net assets
27,597
26,725
35,275
36,672


11. Segmental results

    BY INDUSTRY SEGMENTS
    Marine
    & Oilfield
    Turbocharger
    Trading
    Foundry
    Subsea
    Robotics
    Eliminations
    Group
    30 September 2001
    S$'000
    S$'000
    S$'000
    S$'000
    S$'000
    S$'000
    S$'000
    Revenue
    External sales
    12,473
    7,333
    -
    449
    1,037
    -
    21,292
    Inter-segment sales
    519
    -
    -
    75
    -
    (594)
    -
    Total sales
    12,992
    7,333
    -
    524
    1,037
    (594)
    21,292
    Segment results
    736
    419
    (102)
    (450)
    (291)
    286
    598
    Taxation
    (278)
    (164)
    -
    -
    -
    -
    (442)
    Minority interest
    -
    -
    -
    -
    -
    79
    79
    Net profit/(loss) attributable to members of the Company
    458
    255
    (102)
    (450)
    (291)
    365
    235
    Assets and Liabilities
    Segment assets
    18,518
    10,818
    11,095
    226
    7,247
    (5,109)
    42,795
    Segment liabilities
    (5,443)
    (5,565)
    (754)
    (242)
    (3,701)
    507
    (15,198)


     

    BY GEOGRAPHICAL SEGMENTS
    Singapore
    Australia
    Malaysia
    United Kingdom
    Total
    30 September 2001
    S$'000
    S$'000
    S$'000
    S'000
    S$'000
    External sales
    12,473
    7,333
    449
    1,037
    21,292
    Segment assets
    31,207
    6,818
    1,089
    3,681
    42,795
    Capital expenditure
    2,407
    119
    -
    2,745
    5,271


     

    BY INDUSTRY SEGMENTS
    Marine
    & Oilfield
    Turbocharger
    Trading
    Foundry
    Subsea
    Robotics
    Eliminations
    Group
    30 September 2000
    S$'000
    S$'000
    S$'000
    S$'000
    S$'000
    S$'000
    S$'000
    Revenue
    External sales
    11,251
    8,139
    6,985
    394
    -
    -
    26,769
    Inter-segment sales
    482
    39
    69
    455
    -
    (1,045)
    -
    Total sales
    11,733
    8,178
    7,054
    849
    -
    (1,045)
    26,769
    Segment results (restated)
    270
    752
    (213)
    (48)
    (51)
    203
    913
    Taxation
    -
    (316)
    -
    (1)
    -
    (56)
    (373)
    Minority interest
    -
    -
    -
    -
    -
    13
    13
    Net profit/(loss) attributable to members of the Company
    270
    436
    (213)
    (49)
    (51)
    160
    553
    Assets and Liabilities
    Segment assets
    17,694
    12,264
    14,718
    1,510
    754
    (4,354)
    42,586
    Segment liabilities (restated)
    (6,152)
    (6,884)
    (2,321)
    (1,069)
    (166)
    (215)
    (16,807)


     

    BY GEOGRAPHICAL SEGMENTS
    Singapore
    Australia
    Malaysia
    Total
    30 September 2000
    S$'000
    S$'000
    S$'000
    S$'000
    External sales
    18,236
    8,139
    394
    26,769
    Segment assets
    33,862
    7,016
    1,708
    42,586
    Capital expenditure
    792
    245
    131
    1,168


     

12. Summarised Statement of Changes in Equity



     

    Group
    Share Capital
    Share Premium
    Foreign Currency Translation
    Retained Earnings
    Share Capital & Reserves
    S$'000
    S$'000
    S$'000
    S$'000
    S$'000
    Balance as at 1 April 2001 (as previously reported)
    19,800
    1,944
    531
    4,321
    26,596
    Prior year adjustment (#)
    -
    -
    -
    (180)
    (180)
    Balance as at 1 April 2001 as restated
    19,800
    1,944
    531
    4,141
    26,416
    Net profit attributable to members of the Company for the period
    -
    -
    -
    235
    235
    Exchange difference on translation of overseas subsidiary companies
    -
    -
    (12)
    -
    (12)
    Balance as at 30 September 2001
    19,800
    1,944
    519
    4,376
    26,639



     

    Company
    Share Capital
    Share Premium
    Retained Earnings
    Share Capital & Reserves
    S$'000
    S$'000
    S$'000
    S$'000
    Balance as at 1 April 2001 (as previously reported)
    19,800
    1,944
    14,970
    36,714
    Prior year adjustment (#)
    -
    -
    (42)
    (42)
    Balance as at 1 April 2001 as restated
    19,800
    1,944
    14,928
    36,672
    Net profit attributable to members of the Company for the period
    -
    -
    (1,397)
    (1,397)
    Balance as at 30 September 2001
    19,800
    1,944
    (13,531)
    35,275


BY ORDER OF THE BOARD

Fong Choon Seng
Company Secretary
30/11/2001