Financial Statements And Related Announcement - Full Yearly Results

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Unaudited 2018 Financial Statements

Profit & Loss

Consolidated Statement Of Comprehensive Income

Balance Sheet

Review of Performance

FY18

Revenue

The Group's sales revenue was 2.8% higher at S$242.4 million in FY18 compared to S$235.8 million in FY17. This was mainly due to new sales in North Asia.

Gross Profit and Gross Profit Margin

Gross profit was S$60.6 million in FY18 compared to S$61.8 million in FY17. Gross profit margin decreased from 26.2% in FY17 to 25.0% in FY18. This was mainly due to higher cost of sales in tyres and higher cost of wheel production.

Operating Expenses

Total operating expenses increased by 5.4% to S$59.4 million in FY18 compared to S$56.4 million in FY17. The increase was mainly due to higher foreign exchange costs, staff costs, marketing and distribution costs and maintenance costs offset by lower finance cost.

Share of Results of Joint Ventures

In FY18, the share of results of joint ventures amounted to a net profit of S$1.6 million, compared to S$2.0 million in FY17, mainly due to net loss from our India joint venture.

Net Profit

The net profit of the Group was S$5.2 million in FY18, compared to S$8.1 million recorded in FY17.

Financial Position

Property, plant and equipment decreased to S$69.2 million as at 30 April 2018 from S$70.7 million as at 30 April 2017.

Receivables decreased to S$60.2 million as at 30 April 2018 from S$67.5 million as at 30 April 2017.

Inventories increased to S$86.4 million as at 30 April 2018 from S$77.9 million as at 30 April 2017.

Trade payables and trust receipts decreased to S$66.5 million as at 30 April 2018 from S$71.3 million as at 30 April 2017.

As at 30 April 2018, the Group's cash and cash equivalents stood at S$21.9 million compared to S$21.7 million as at 30 April 2017.

The Group's borrowings which comprise trust receipts, revolving credit, short-term secured loans as well as long-term secured loans stood at S$89.5 million as at 30 April 2018 compared with S$96.2 million as at 30 April 2017. The decrease in borrowings was mainly due to the repayment of trust receipts.

Commentary

The operating environment in the tyre business remains challenging as a result of global oversupply and intense competition.

To mitigate the impact of this challenging environment, the Group will continue to optimize its product mix, manage operating costs and build on its core markets in South East Asia.