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Financial Statements And Related Announcement - Second Quarter Results

Financials Archive

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Unaudited Second Quarter 2018 Financial Statements

Profit & Loss

Consolidated Statement Of Comprehensive Income

Financials

Balance Sheet

Financials

Review of Performance

Q2FY18

Revenue

The Group's sales revenue was 2.3% higher at S$59.0 million in Q2FY18 compared to S$57.7 million in Q2FY17. This was mainly due to improved sales in Australia and the South East Asian markets.

Gross Profit and Gross Profit Margin

Gross profit was S$15.4 million in Q2FY18 compared to S$15.0 million in Q2FY17. Gross profit margin increased from 26.0% in Q2FY17 to 26.1% in Q2FY18, mainly attributable to value-added activities at the Group's Stamford Tyres Mart retail chain and truck tyre centres.

Operating Expenses

Total operating expenses increased by 6.8% to S$14.9 million in Q2FY18 compared to S$14.0 million in Q2FY17. The increase was mainly due to higher operating lease rentals, higher foreign exchange costs and allowance for doubtful trade receivables.

Share of Results of Joint Ventures

In Q2FY18, our share of profits from joint ventures amounted to a net of S$0.8 million, compared to S$0.4 million Q2FY17, mainly attributable to improved performance from joint ventures.

Net Profit

The net profit of the Group was 10.4% higher at S$1.6 million in Q2FY18, compared to S$1.5 million recorded in Q2FY17.

Financial Position

Property, plant and equipment decreased to S$69.3 million as at 31 October 2017 from S$70.7 million as at 30 April 2017.

Receivables decreased to S$60.0 million as at 31 October 2017 from S$67.5 million as at 30 April 2017.

Inventories increased to S$83.0 million as at 31 October 2017 from S$77.9 million as at 30 April 2017.

Trade payables and trust receipts decreased to S$63.5 million as at 31 October 2017 from S$71.3 million as at 30 April 2017.

As at 31 October 2017, the Group's cash and cash equivalents stood at S$18.7 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$88.5 million as at 31 October 2017 compared with S$96.2 million as at 30 April 2017. The decrease in borrowings was mainly due to the repayment of trust receipts.

1HFY18

Revenue

The Group's sales revenue was 1.9% higher at S$118.0 million in 1HFY18 compared to S$115.8 million in 1HFY17. This was mainly due to improved sales in Australia and the South East Asian markets.

Gross Profit and Gross Profit Margin

Gross profit was S$31.1 million in 1HFY18 compared to S$30.0 million in 1HFY17. Gross profit margin increased from 25.7% in 1HFY17 to 26.4% in 1HFY18, mainly attributable to value-added activities at its Stamford Tyres Mart retail chain and truck tyre centres.

Operating Expenses

Total operating expenses increased by 6.7% to S$29.3 million in 1HFY18 compared to S$27.5 million in 1HFY17. The increase was mainly due to higher operating lease rentals, higher foreign exchange costs and allowance for doubtful trade receivables.

Share of Results of Joint Ventures

In 1HFY18, the share of results of joint ventures amounted to a net profit of S$1.4 million, compared to S$1.0 million in 1HFY17, mainly attributable to improved performance from our Hong Kong joint venture.

Net Profit

The net profit of the Group was 17.4% higher at S$3.5 million in 1HFY18, compared to S$3.0 million recorded in 1HFY17.

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.