Financial Statements And Related Announcement - Full Yearly Results

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Condensed Interim Financial Statements for 6 Months and Full Year Ended 30 April 2024

Condensed interim consolidated income statement

Condensed interim consolidated statement of comprehensive income

Condensed interim statements of financial position

Review of Performance

FY24

Revenue

The Group's revenue was 1.9% lower at S$184.8 million in FY24 compared to S$188.3 million in FY23, primarily due to lower sales in the South East Asia markets.

Gross Profit and Gross Profit Margin

Gross profit decreased by S$1.7 million to S$48.7 million in FY24 compared to S$50.4 million in FY23. The decrease was mainly due to lower sales and lower gross profit margin.

Gross profit margin was lower at 26.3% in FY24 compared to 26.7% in FY23. This was mainly due to higher cost of tyres.

Operating Expenses

Excluding the one-off gain from the disposal of property, plant and equipment amounting to S$1.9 million in FY24, total operating expenses decreased by 4.6% to S$49.1 million in FY24 compared to S$51.5 million in FY23. The decrease was mainly due to net write-back of allowance for doubtful receivables from the continued credit assessment in accordance with SFRS(I) 9 and the recovery of debts previously provided for, net write-back of provision for inventory obsolescence from the sale of slow-moving stocks previously provided for as well as lower foreign exchange cost; offset by higher staff cost, finance cost, utilities, repairs and maintenance cost and marketing and distribution cost.

Share of Results of Joint Ventures

In FY24, the share of results of joint ventures amounted to a net profit of S$0.8 million compared to S$1.4 million in FY23, mainly due to lower sales by the Hong Kong joint venture.

Net Profit

The net profit of the Group was S$6.0 million in FY24, compared to S$4.2 million recorded in FY23.

Financial Position

Property, plant and equipment decreased to S$45.9 million as at 30 April 2024 from S$51.8 million as at 30 April 2023 mainly due to depreciation and disposal of two properties, which were announced in November and December 2023 respectively during the year.

Trade receivables decreased to S$30.4 million as at 30 April 2024 from S$30.9 million as at 30 April 2023.

Inventories decreased to S$68.5 million as at 30 April 2024 from S$85.3 million as at 30 April 2023. This was in line with the Group's efforts in rationalising its inventories.

Trade payables and trust receipts decreased to S$45.5 million as at 30 April 2024 from S$50.1 million as at 30 April 2023.

As at 30 April 2024, the Group's cash and cash equivalents stood at S$32.5 million compared to S$30.3 million as at 30 April 2023.

The Group's borrowings which comprise trust receipts, revolving credit, hire-purchase liabilities, short-term secured loans as well as long-term secured loans stood at S$60.4 million as at 30 April 2024 compared to S$77.1 million as at 30 April 2023. The decrease in borrowings was mainly due to net repayment of term loans during the year.

Commentary

The operating environment in the tyre business remains challenging as a result of intense competition and major geo-political and macroeconomic events globally.

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.