Investor Relations - News

Press Release - Metalock Chalked Up Earnings Of S$5.4M For The Financial Year Ended 31 March 2003

SINGAPORE - 30 APRIL 2003 - Mainboard-listed engineering group Metalock (Singapore) Limited today announced a 4th quarter profit after tax of S$771,000 on the back of a S$12,754,000 turnover, hammering home a full-year profit of S$5,385,000 on a S$48,030,000 turnover. This compares favourably to the previous financial year which saw a profit of S$1,481,000 for the full year.

The improved bottom line was arrived at after accounting for a net exceptional gain of S$2,799,000 arising from sale of the Group's marine repair services division offset by a provision for an investment. Before the net exceptional gain, the Group had already secured a profit before tax (PBT) of S$3,111,000 for the year, which represents a 63% surge above its previous year comparative.

On the full year results, the Chairman & CEO of Metalock, Mr K.K. Kuah, commented, "The result is indeed encouraging. It tells our shareholders how we have successfully laid the right bricks in the right fashion whilst weeding out bad ones to construct a profitable growth path for the Group. The divestment of loss-making businesses, the acquisition of new business ventures with good growth potential, and the conscious focus on strengthening the Group's core operations, are the collective key ingredients for the improvement this time round."

The Group's Turbocharger & Fuel Injection division in Australia had enjoyed excellent growth in profit as it experienced a rise in the large and small frame turbocharger sales. On top of that, the division had also, during the second half, reaped maiden income from the newly acquired fuel injection business, and benefited from the extension of its turbocharger business via acquiring the business assets of Turbo Torque Pty Ltd. The Oilfield division also continued to secure healthy earnings growth despite increasing market competition.

The subsea robotics market remained soft through the second half year, resulting from the unusually severe winter period and uncertainties arising from the war in Iraq. Notwithstanding this, the division had introduced its second Swift ROV in the quarter, after the successful launch of its predecessor, as part of its efforts to reduce reliance on its principal North Sea market.

Moving forward, Mr Kuah said, "With our core businesses now poised for further growth, we will continue to focus on nurturing these businesses, taking every opportunity to expand our operations when circumstances permit. We will see the first replication of our Turbocharger and Fuel Injection business in South East Asia taking place by 1Q2004, although its growth in the immediate financial year will be moderated to some extent by the initial startup costs. On the subsea robotics operations, we expect our fleet utilisation rate to stage a gradual recovery as we expand into Asia whilst placing less reliance on North Sea market."

Although mounting market competition is unlikely to ease within the near term, the Group expects continued growth in its Oilfield Engineering division through strengthening its customer relationships and exploring more business opportunities with the OEMs, drilling contractors and rig owners.

"While the Group's overall performance had remained relatively unscathed through the Iraq war, with the exception of its Subsea Robotics division, the prevailing uncertainties in the Middle East as well as the development of the SARS crisis in the region could have a bearing over the economy at large and the Group's performance. With many external unknowns surrounding us now, the road ahead will be fraught with potential threats. We just have to sit tight and prepare ourselves to take the challenge as they come. Barring any unforeseen circumstances, we expect the Group to sustain a comparable operating profit in the first quarter and the new financial year." Mr Kuah said.


Metalock (Singapore) Limited Group specialises in engineering services, and is primarily involved in oilfield equipment repairs as well as the design, production and operation of subsea remotely operated vehicles. The Group also owns the leading independent turbocharger supplier and repairer in Australia.

CONTACT INFORMATION
Metalock (Singapore) Limited
Tel: 6777 7651 Fax: 6777 6433
Kuah Kok Kim, Chairman & CEO
kkkuah@metalock.com.sg
William Fong, Group Financial Controller
williamfong@metalock.com.sg