Investor Relations - News

Full Year Financial Statement And Dividend Announcement

Full-year financial statement on consolidated results for the year ended 31 March 2002.
These figures have not been audited.

		Group			Company
-	-	S$'000		%	S$'000		%
-	-.	31.03.2002	31.03.2001 Restated#	Change	31.03.2002	31.03.2001 Restated#	Change
1.(a)	Turnover	42,412	49,670	(14.6)	3,552	12,184	(70.8)
1.(b)	Investment income	0	7	N/M	0	2	N/M
1.(c)	Other income including interest income	465	576	(19.3)	368	2,221	(83.4)
2.(a)	Operating profit before income tax, minority interests, extraordinary items, interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	4,318	3,619	19.3	1,035	2,547	(59.4)
2.(b)(i)	Interest on borrowings	(357)	(413)	(13.6)	(12)	(54)	(77.8)
2.(b)(ii)	Depreciation and amortisation	(2,134)	(2,420)	(11.8)	(688)	(1,389)	(50.5)
2.(b)(iii)	Foreign exchange gain/(loss)	87	13	569.2	13	13	0
2.(c)	Exceptional items (#)	(221)	1,481	N/M	(1,591)	401	N/M
2.(d)	Operating profit/(loss) before income tax, minority interests and extraordinary items but after interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	1,693	2,280	(25.7)	(1,243)	1,518	N/M
.	.	31.03.2002	31.03.2001 Restated#	Change	31.03.2002	31.03.2001 Restated#	Change
2.(e)	Income derived from associated companies	0	0	0	0	0	0
2.(f)	Less income tax	(434)	(418)	3.8	(32)	(25)	28.0
2.(g)(i)	Operating profit after tax before deducting minority interests	1,259	1,862	(32.4)	(1,275)	1,493	N/M
2.(g)(ii)	Less minority interests	222	87	155.2	0	0	0
2.(h)	Operating profit/(loss) after tax attributable to members of the company	1,481	1,949	(24.0)	(1,275)	1,493	N/M
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	1,481	1,949	(24.0)	(1,275)	1,493	N/M

N/M : Not Meaningful

#Prior year adjustments arise from the implementation of:
(1) SAS 17 (2000) (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$0.09m and S$0.02m respectively. The cumulative charge for prior years has been made against the opening revenue reserves of the Group and the Company by approximately S$0.18m and S$0.04m respectively.

(2) SAS 10 (revised 2000) (Events after the Balance Sheet Date) : With effect from 1 April 2001, proposed final dividend are recognised only after they have been formally declared payable by shareholders. This change has been applied retrospectively by adjusting the opening revenue reserves of the Group and the Company by S$0.75m.

(3) SAS 8 (revised 2000) (Net Profit or Loss for the Period, Fundamental Errors and Changes in Accounting Policies): With effect from 1 April 2001, Extraordinary Items which do not meet the definition of extraordinary items in SAS 8 have been reclassified to Exceptional Items. This change has been applied retrospectively by reclassifying the comparatives in the Profit & Loss Accounts to conform with the current year's presentation.

Group Figures
		Latest year	Previous year
3.(a)	Operating profit [2(g)(i) above] as a percentage of turnover [1(a) above]	2.97%	3.75%
3.(b)	Operating profit [2(h) above] as a percentage of issued capital and reserves at end of year	5.30%	7.18%
3.(c)	Earnings per ordinary share for the year based on 2(h) above after deducting any provision for preference dividends:-
3.(c)(i)	Based on existing issued share capital	1.87 cents	2.46 cents
3.(c)(ii)	On a fully diluted basis	1.86 cents	2.46 cents
3.(d)	Earnings per share based on 2(j) above:-
	(i) Based on existing issued share capital	1.87 cents	2.46 cents
	(ii) On a fully diluted basis	1.86 cents	2.46 cents
3.(e)	Net tangible asset backing per ordinary share	35.27 cents	34.30 cents

Note: The figures for the previous year have been restated.

-	-	Group			Company
-	-	S$'000		%	S$'000		%
-	-	31.03.2002	31.03.2001 Restated#	Change	31.03.2002	31.03.2001 Restated#	Change
-
4.(a)	Sales reported for first half year	21,292	26,769	(20.5)	1,681	6,019	(72.1)
4.(b)	Operating profit/(loss) [2(g)(i) above] reported for first half year	156	540	(71.1)	(1,397)	378	N/M
4.(c)	Sales reported for second half year	21,120	22,901	(7.8)	1,871	6,165	(69.7)
4.(d)	Operating profit [2(g)(i) above] reported for second half year	1,103	1,322	(16.6)	122	1,115	(89.1)

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

Under provision of the Group's prior year's current taxation amounted to S$37,249 and over provision of the Group's prior year's deferred taxation amounted to S$30,987.

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

NIL

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

NIL

5.(d) Any other comments relating to Paragraph 5

NIL

6. Segmental Results

BY INDUSTRY SEGMENTS 31 March 2002	Marine & Oifield	Turbocharger	Trading	Foundry	Subsea Robotics	Eliminations	Group
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Revenue
External sales	24,007	16,073	23	463	1,846	-	42,412
Inter-segment sales	514	-	-	79	-	(593)	-
Total sales	24,521	16,073	23	542	1,846	(593)	42,412
Segment results	2,006	940	564	(520)	(792)	(505)	1,693
Taxation	(260)	(413)	39	-	(16)	216	(434)
Minority interest	-	-	-	-	-	222	222
Net profit/(loss) attributable to shareholders	1,746	527	603	(520)	(808)	(67)	1,481
Assets and Liabilities
Segment assets	19,880	11,570	10,441	(55)	10,604	(4,797)	47,643
Segment liabilities	(5,460)	(5,552)	(300)	(9)	(7,476)	(18)	(18,815)
BY GEOGRAPHICAL SEGMENTS 31 March 2002	Singapore	Australia	Malaysia	United Kingdom	Total
	S$'000	S$'000	S$'000	S$'000	S$'000
External sales	24,030	16,073	463	1,846	42,412
Segment assets	38,779	6,842	(55)	2,077	47,643
Capital expenditure	7,424	289	-	3,033	10,746
BY INDUSTRY SEGMENTS 31 March 2001	Marine & Oilfield	Turbocharger	Trading	Foundry	Subsea Robotics	Eliminations	Group
	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000	S$'000
Revenue
External sales	20,517	14,994	12,993	1,166	-	-	49,670
Inter-segment sales	3,096	36	69	173	-	(3,374)	-
Total sales	23,613	15,030	13,062	1,339	-	(3,374)	49,670
Segment results (restated)	846	881	386	(53)	(275)	495	2,280
Taxation	(25)	(427)	62	(1)	-	(27)	(418)
Minority interest	-	-	-	-	-	87	87
Net profit/(loss) attributable to shareholders	821	454	448	(54)	(275)	555	1,949
Assets and Liabilities
Segment assets	22,100	10,837	12,270	1,398	3,156	(3,835)	45,926
Segment liabilities	(6,590)	(5,782)	(2,732)	(954)	(2,180)	(216)	(18,454)
BY GEOGRAPHICAL SEGMENTS 31 March 2001	Singapore	Australia	Malaysia	Total
	S$'000	S$'000	S$'000	S$'000
External sales	33,510	14,994	1,166	49,670
Segment assets	38,303	6,225	1,398	45,926
Capital expenditure	4,054	543	181	4,778

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

The Group's turnover of S$42.4m reflected a decline of 14.6% from S$49.7m in the last financial year, attributable largely to the sale of the Group's trading business in Aqua-Terra Supply Co. Pte Ltd on 31 March 2001.

The absence of the revenue contribution from Aqua-Terra was mitigated by higher sales from the Group's other operating divisions in oilfield, turbocharger and subsea robotics services. In particular, the Group enjoyed maiden revenue contributions from MTQ Subsea Technology Pte Ltd in the year with the launch of its first two survey class remotely operated vehicles (ROVs).

Meanwhile, the Group's marine operations continued to operate under severe competition in the industry. On 15 February 2002, the Group entered into an agreement with Ciserv Singapore Pte Ltd for the sale of its marine repair services business. The sale is expected to be completed by May 2002.

Notwithstanding a lower turnover, the Group achieved a profit before exceptional items, taxation and minority interests [item 2(a)] of S$4.3m, which represents a 19.3% improvement over the corresponding figure of S$3.6m for the previous year. The Group's oilfield services division, in particular, achieved significant growth in the financial year under review led by an increase in exploration activities in the oil and gas industry.

The exceptional loss of S$0.2m arose from retrenchment costs incurred in the first half of the financial year. Profit after taxation and minority interests of S$1.5m was lower than S$1.9m recorded last year as the profit last year included an exceptional gain of S$1.5m arising mainly from the sale of Aqua-Terra's business assets.

Profit after taxation and minority interests in the second half of the financial year was significantly higher than the first half due to the absence of further losses from the Group's foundry operations in Metalock Castings Sdn Bhd, which ceased operations from July 2001. The Group's turbocharger operations in Australia also performed better in the second half.

Pursuant to a restructuring exercise in 1 April 2002, the Company became an investment holding company providing only corporate services to its subsidiary companies. The Company's turnover of S$3.6m for the financial year ended 31 March 2002 represented management fees and rental income derived from its subsidiary companies.

The Company suffered a loss of S$1.2m due to provisions for diminution in value of the Company's investments in its foundry operations in Metalock Castings Sdn Bhd and Aqua-Terra, both of which ceased operations in the year.

7.(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 31 March 2002 and the date of this announcement that would materially affect the results of the Company and the Group.

8. Commentary on current year prospects

By the first quarter of the new financial year, the Group's existing ROV fleet will be boosted by the addition of 2 light work-class SuperMohawk ROVs and 2 heavy work-class Phoenix ROVs. MTQ Subsea Technology Pte Ltd is expected to start contributing positively to the Group in the year.

Contributions from the Group's oilfield services business in MTQ Engineering Pte Ltd is likely to continue as conditions in the oil and gas industry remain buoyant. The Group is currently looking into expanding its involvement in this sector.

Performance of the Group's turbocharger operation in Australia is also expected to remain healthy.

Barring unforeseen circumstances, in view of the above factors and given the sale of its loss-making marine repair services business, the Group is expected to perform better in the new financial year.

9. Dividend

(a) Present Period
Name of Dividend	Final
Dividend Type	Cash
Dividend Rate	5 % per ordinary share less tax
Par value of shares	S$0.25
Tax Rate	24.50%
(b) Previous Corresponding Period
Name of Dividend	Final
Dividend Type	Cash
Dividend Rate	5 % per ordinary share less tax
Par value of shares	S$0.25
Tax Rate	24.50%
(c) Total Annual Dividend
-
-	Latest Year (S$)	Previous Year (S$)
Ordinary	747,450	747,450
Preference	0	0
Total:	747,450	747,450

9(d) Date payable

The proposed dividend, if approved at the Annual General Meeting, will be paid at a date to be announced later.

9(e) Books closing date

Notice will be given at a later date on the closure of the Share Transfers Books and Register of Members to determine shareholders' entitlements to the proposed final dividend.

9(f) Any other comments relating to Paragraph 9

NIL

10. Balance sheet

	Group	Group	Company	Company
	31.03.02	31.03.01	31.03.02	31.03.01
	S$'000	S$'000	S$'000	S$'000
		(Restated#)		(Restated#)
Share capital	19,800	19,800	19,800	19,800
Share premium account	1,944	1,944	1,944	1,944
Reserves	6,190	5,419	13,653	15,675
Share capital & reserves	27,934	27,163	35,397	37,419
Minority interests	894	309	-	-
Capital employed	28,828	27,472	35,397	37,419
Represented by:
Non-current assets
Fixed assets	21,773	17,996	4,307	6,698
Associated company	-	-	-	-
Investments	685	390	28,269	28,152
Staff loans receivable	290	368	98	250
	22,748	18,754	32,674	35,100
Current assets
Cash at bank and in hand	7,881	1,490	3,448	37
Current assets	17,014	25,682	987	6,924
	24,895	27,172	4,435	6,961
Current liabilities
Term loans & overdraft	(3,593)	(3,060)	-	(1,230)
Other current liabilities	(11,100)	(11,757)	(987)	(2,591)
	(14,693)	(14,817)	(987)	(3,821)
Net current assets	10,202	12,355	3,448	3,140
Non-current liabilities
Term loans	(3,562)	(2,666)	-	-
Deferred taxation	(494)	(821)	(725)	(821)
Hire Purchase creditors	(66)	(150)	-	-
Non-current liabilities	(4,122)	(3,637)	(725)	(821)
Net assets	28,828	27,472	35,397	37,419

The presentation and classification of items in the Balance Sheet have been changed to provide a proper comparison with the current year's presentation.

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

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

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

(a) Amount repayable in one year or less, or on demand
As at 31/03/2002		As at 30/09/2001
Secured	Unsecured	Secured	Unsecured
S$'000 3,593	S$'000 0	S$'000 3,242	S$'000 0

(b) Amount repayable after one year
As at 31/03/2002		As at 30/09/2001
Secured	Unsecured	Secured	Unsecured
S$'000 3,562	S$'000 0	S$'000 2,032	S$'000 0

(c) Any other comments relating to Paragraph 12

NIL

13. 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$'000
Balance as at 1 April 2001 (as previously reported)	19,800	1,944	531	4,321	26,596
Prior year adjustments (#)	-	-	-	567	567
Balance as at 1 April 2001 as restated	19,800	1,944	531	4,888	27,163
Net profit attributable to shareholders for the year	-	-	-	1,481	1,481
Exchange difference on translation of overseas subsidiary companies	-	-	37	-	37
Dividends paid in respect of the previous year	-	-	-	(747)	(747)
Balance as at 31 March 2002	19,800	1,944	568	5,622	27,934
Company	Share Capital	Share Premium	Retained Earnings	Share Capital & Reserves
	S$'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 adjustments (#)	-	-	705	705
Balance as at 1 April 2001 as restated	19,800	1,944	15,675	37,419
Net loss attributable to shareholders for the year	-	-	(1,275)	(1,275)
Dividends paid in respect of the previous year	-	-	(747)	(747)
Balance as at 31 March 2002	19,800	1,944	13,653	35,397

14. Consolidated Statement of Cash Flows for the Year Ended 31 March 2002

	2002	2001
	S$'000	S$'000
Cash flows from operating activities:
Profit before taxation	1,693	2,280
Add/(Less):
Depreciation of property, plant and equipment	2,134	2,420
Impairment of property, plant and equipment	170	238
Profit on sale of property, plant and equipment	(110)	(408)
Profit on sale of quoted investments	(2)	(56)
Dilution of minority interest in a subsidiary company, net	(3)	-
Investment and interest income	(62)	(38)
Interest expense	357	413
Write back of provision for diminution in quoted investments	-	(10)
Profit on sale of business assets by a subsidiary company	-	(1,103)
Write-back of provision for amounts due from associated company	-	(34)
Operating income before reinvestment in working capital	4,177	3,702
Decrease/(increase) in receivable	2,644	(479)
(Increase)/decrease in inventories and work-in-progress	(146)	1,486
Decrease in payable	(654)	(1,024)
Decrease in amounts receivable from associated company	-	18
Currency re-alignment	90	(211)
Cash generated from operations	6,111	3,492
Investment and interest income	62	38
Interest expense	(357)	(413)
Income taxes paid	(602)	(703)
Net cash provided by operating activities	5,214	2,414
Cash flows from investing activities:
Purchase of property, plant and equipment	(10,746)	(4,609)
Proceeds from sale of property, plant and equipment	4,969	935
Proceeds from sale of quoted investments	43	162
Additional investment in unquoted investment	(336)	(349)
Subscription for shares in a subsidiary company by minority shareholders	810	235
Staff loans receivable	145	259
Proceeds from sale of business assets by a subsidiary company in prior year	5,970	-
Acquisition of business assets by a subsidiary company	-	(65)
Net cash used in investing activities	855	(3,432)
Cash flows from financing activities:
Dividends paid	(747)	-
Repayment of finance leases	(123)	(52)
Proceeds from finance leases	37	96
(Repayment)/Proceeds from bank overdraft, secured	(94)	463
Proceeds from term loans	3,820	900
Repayment of term loans	(1,615)	(618)
Net cash provided by financing activities	1,278	789
Net change in cash and cash equivalents	7347	(229)
Cash and cash equivalents at beginning of financial year	534	763
Cash and cash equivalents at end of financial year	7,881	534

BY ORDER OF THE BOARD

Fong Choon Seng
Company Secretary
03/05/2002