Financial Statements And Related Announcement - Full Yearly Results

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2017 Financial Statements

Profit & Loss

Consolidated Statement Of Comprehensive Income

Balance Sheet

Review of Performance

FY17

Revenue

The Group's sales revenue was 1.7% lower at S$235.8 million in FY17 compared to S$239.9 million in FY16. This was mainly due to lower sales in Africa and South East Asian markets.

Gross Profit and Gross Profit Margin

Gross profit was S$61.8 million in FY17 compared to S$59.1 million in FY16. Gross profit margin increased from 24.7% in FY16 to 26.2% in FY17, mainly attributable to value-added activities at its Stamford Tyres Mart retail chain and truck tyre centres.

Operating Expenses

Total operating expenses decreased by 3.2% to S$56.4 million in FY17 compared to S$58.2 million in FY16. The decrease was attributed to lower finance costs, marketing and distribution costs and foreign exchange costs; offset by higher allowance for inventory obsolescence.

Share of Results of Joint Ventures

In FY17, the share of results of joint ventures amounted to a net profit of S$2.6 million, compared to S$1.8 million in FY16, mainly attributable to improved performance from our Hong Kong and India joint ventures.

Net Profit

The net profit of the Group more than tripled to S$8.1 million in FY17, compared to S$2.6 million recorded in FY16.

Financial Position

Property, plant and equipment increased to S$70.7 million as at 30 April 2017 from S$70.6 million as at 30 April 2016.

Receivables decreased to S$67.5 million as at 30 April 2017 from S$67.6 million as at 30 April 2016.

Inventories decreased to S$77.9 million as at 30 April 2017 from S$85.0 million as at 30 April 2016. This decrease was in line with lower purchases during the year.

Trade payables and trust receipts increased to S$71.3 million as at 30 April 2017 from S$66.9 million as at 30 April 2016.

As at 30 April 2017, the Group's cash and cash equivalents stood at S$21.7 million compared to S$17.4 million as at 30 April 2016.

The Group's borrowings which comprise trust receipts, revolving credit, short-term secured loans as well as long-term secured loans stood at S$96.2 million as at 30 April 2017 compared with S$107.3 million as at 30 April 2016. The decrease in borrowings was mainly due to the repayment of long term loans.

Commentary

The global economic outlook continues to remain uncertain. As a result, our operating environment will continue to be challenging.

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.