Design Studio

Financial Information

Financials

Email This Print This

Third Quarter Results Financial Statement And Related Announcement

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

Consolidated Income Statement

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Statement of Comprehensive Income

Review of Group Performance

For 3Q2016, the Group's revenue increased by 36.3% to S$43.5 million as compared with revenue for 3Q2015 as a result of increase in contribution from the Residential property and Hospitality and commercial segment. During the quarter, more projects were completed as compared with 3Q2015.

The gross margin increased from 19.4% in 2Q2015 to 23.1% for 3Q2016, as a result of higher margins recorded in projects completed during the quarter.

Marketing and distribution expenses increased from $1.0 million in 3Q2015 to S$1.6 million in 3Q2016, mainly due to increase in staff costs and showroom depreciation expenses.

General and administrative expenses decreased marginally from S$2.4 million in 3Q2015 to S$2.3 million in 3Q2016. The decrease was mainly due to lower foreign exchange loss, offset by the increase in staff cost.

As a result, the Group achieved higher profit before tax of S$6.2 million for 3Q2016, an increase of 110.9% as compared with S$2.9 million for 3Q2015. After taking into account tax expenses, the Group's net profit after tax was S$5.0 million for 3Q2016.

The Group's revenue for 9M2016 decreased by 15.7% to S$106.2 million as compared with the revenue for 9M2015. The decrease was a result of decrease in contribution from all segments.

The gross margin increased from 18.9% in 9M2015 to 21.8% for 9M2016, as a result of higher margins recorded in projects completed during the half year.

For 9M2016, marketing and distribution expenses increased by 16.5% to S$4.0 million as compared with S$3.4 million in 9M2015, mainly due to increase in staff cost..

General and administrative expenses decreased from S$7.5 million in 9M2015 to S$5.7 million in 9M2016. The decrease was mainly due to exchange gain in 9M2016 as compared with an exchange loss in 9M2015, reduction in staff cost and the global executive search fees in relation to the search of the new CEO in 2015.

As a result, the Group achieved a higher profit before tax of S$13.7 million for 9M2016, as compared with S$13.1 million for 9M2015. After taking into account the tax expenses, the Group's net profit after tax was S$11.2 million for 9M2016.

Balance Sheet (30 September 2016 vs 31 December 2015)

Property, plant and equipment decreased by S$3.0 million mainly due to depreciation charges, offset by the purchase of equipment and construction-in-progress during the period.

Inventories increased by S$0.8 million to S$14.4 million as a result of higher level of raw materials purchased for ongoing projects.

Contracts work-in-progress increased by S$1.4 million to S$7.1 million as at 30 September 2016. The increase was due to higher amount of work in progress pending certification by client as at 30 September 2016.

Non-current trade receivables decreased by S$0.7 million to S$13.5 million as at 30 September 2016 due to movement of retention sums.

Total current trade receivables increased to S$43.9 million as at 30 September 2016 as compared with S$32.6 million as at 31 December 2015. The increase was due to slower collection of retention sum, as well as longer credit terms for some new contracts.

Other receivables and deposits increased by S$1.4 million to S$5.1 million. The increase was mainly due to deposits made to suppliers and subcontractors for new projects

Accrued operating expense increased by S$7.2 million to S$29.2 million as at 30 September as compared with S$22.0 million as at 31 December 2015 mainly due to project-related accruals.

Balance Sheet

Cash Flow
3Q2016 vs 3Q2015

For 3Q2016, there was net cash inflow of S$2.3 million. Cash flows from operating activities is partially offset by the payment of dividends in September 2016.

9M2016 vs 9M2015

For 9M2016, there was net cash outflow of S$10.7 million. The cash outflow is mainly due to the payment of dividends in 9M2016, offset by cash flow from operating activities.

Commentary

We expect the operating environment in our key markets to remain challenging and competitive for the next 12 months.

The Group secured 40 new projects worth S$178.9 million to date in FY2016, bringing our order book to S$242.1 million as at 30 September 2016.

Coupled with our strong cash position of S$42.8 million as at 30 September 2016, barring any unforeseen circumstances, we are cautiously optimistic in achieving higher revenue and net profit for 2H2016 compared with 1H2016.