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Financial Statements And Related Announcement - Half Year Results

Financials Archive

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Condensed Interim Financial Statements for 6 Months Financial Period Ended 31 October 2023

Condensed interim consolidated income statement

Condensed interim consolidated statement of comprehensive income

Financials

Condensed interim statements of financial position

Financials

Review of Performance

1HFY24

Revenue

The Group's revenue was 1.4% lower at S$95.6 million in 1HFY24 compared to S$97.0 million in 1HFY23, primarily due to lower sales in the South East Asia and export markets.

Gross Profit and Gross Profit Margin

Gross profit margin was lower at 25.6% in 1HFY24 compared to 26.3% in 1HFY23. This was mainly due to higher cost of tyres and wheel production

Gross profit decreased by S$1.1 million to S$24.5 million in 1HFY24 compared to S$25.5mil in 1HFY23. The decrease was mainly due to lower sales and lower gross profit margin.

Operating Expenses

Total operating expenses decreased by 4.1% to S$25.1 million in 1HFY24 compared to S$26.1 million in 1HFY23. The decrease was mainly due to lower staff cost, foreign exchange cost as well as and net write-back of provision for inventory obsolescence from the sale of slow moving stocks previously provided for; offset by higher finance cost, utilities, repairs and maintenance cost, and marketing and distribution cost.

Share of Results of Joint Ventures

In 1HFY24, the share of results of joint ventures amounted to a net profit of S$220,000 compared to S$725,000 in 1HFY23, mainly due to lower sales by the Hong Kong joint venture.

Net Profit

The net profit of the Group was S$1.6 million in 1HFY24, compared to S$2.1 million recorded in 1HFY23.

Financial Position

Property, plant and equipment decreased to S$48.8 million as at 31 October 2023 from S$51.8 million as at 30 April 2023 mainly due to depreciation during the period and the reclassification of assets held for sale, amounting to S$692,000, as announced on 3 November 2023.

Trade receivables decreased to S$28.1 million as at 31 October 2023 from S$30.9 million as at 30 April 2023.

Inventories decreased to S$76.8 million as at 31 October 2023 from S$85.3 million as at 30 April 2023.

Trade payables and trust receipts increased to S$52.9 million as at 31 October 2023 from S$50.1 million as at 30 April 2023.

As at 31 October 2023, the Group's cash and cash equivalents stood at S$34.8 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$72.4 million as at 31 October 2023 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 period.

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.