2009 Fourth Quarter and Full Year Financial Statement Announcement

Transcription

1 (Company Registration No W) 2009 Fourth Quarter and Full Year Financial Statement Announcement PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY, HALF-YEAR AND FULL YEAR RESULTS Financial statements on consolidated results for the Fourth Quarter and Full Year ended 31 December 2009 These figures have not been audited. 1(a)(i) Income statement Group Group Fourth Quarter ended 31 Dec Twelve Months ended 31 Dec Change Change $ '000 $ '000 % $ '000 $ '000 % Sales 13,117 12, ,940 58,865 (27) Cost of sales (10,102) (10,192) (1) (34,250) (48,348) (29) Gross profit 3,015 2, ,690 10,517 (17) Other gains / (losses) (net) - Miscellaneous 672 (1,017) N/M 3,066 (72) N/M Expenses - Distribution (908) (835) 9 (3,664) (4,418) (17) - Administrative (2,199) (2,519) (13) (8,468) (10,986) (23) - Finance (37) (27) 37 (155) (367) (58) Profit / (loss) before share of profit of associated companies 543 (2,197) N/M (531) (5,326) (90) Share of profit of associated companies (net) Profit / (loss) before income tax 625 (2,172) N/M (180) (5,029) (96) Income tax (expense) / credit (150) 46 (426) (239) 453 N/M Net profit / (loss) 475 (2,126) N/M (419) (4,576) (91) Attributable to: Equity holders of the Company 475 (2,234) N/M (419) (4,576) (91) Minority interests (100) (2,126) N/M (419) (4,576) (91) Page 1 of 12

2 1(a)(ii) Explanatory Notes to Income Statement Loss for the financial year is arrived at after (charging) / crediting the following : Fourth Quarter ended 31 Dec Twelve Months ended 31 Dec Change Change $ '000 $ '000 % $ '000 $ '000 % Dividend income (15) Other Income including interest income 662 (55) N/M 2,125 1, Interest expense (37) (27) 37 (155) (367) (58) Depreciation and Amortisation (1,600) (1,072) 49 (5,625) (5,797) (3) Writeback / (allowance) for impairment of trade and other receivables (net) 17 (999) N/M (183) (1,208) (85) Currency exchange (loss) / gain (net) (44) (954) N/M 721 (1,432) N/M Adjustments for overprovision / (underprovision) of prior year tax Net (loss) / gain on sale of property, plant & equipment & investment properties (4) 940 N/M N/M (3) (75) (96) (12) (21) (43) Impairment of property, plant and equipment (492) - N/M (492) - N/M The miscellaneous gains / (losses) (net) comprise the following: Fourth Quarter ended 31 Dec Twelve Months ended 31 Dec Change Change $ '000 $ '000 % $ '000 $ '000 % Rental income (36) (7) Interest income (23) (59) Dividend income (15) Currency exchange gain / (loss) (net) (44) (954) N/M 721 (1,432) N/M Others 296 (662) N/M 913 (484) N/M Other miscellaneous gains - net 672 (1,017) N/M 3,066 (72) N/M Income tax credit / (expense) attributable to profit is made up of : Current income tax Change $ '000 $ '000 % - Singapore (56) (349) (84) - Foreign (159) (35) 354 (215) (384) (44) Deferred income tax (24) (82) (71) Overprovision in the prior financial years: Twelve Months ended 31 Dec (239) (466) (49) - current income tax (100) (239) 453 N/M N/M : Not meaningful Page 2 of 12

3 1(a)(iii) Statement of Comprehensive Income With effect from 1 January 2009, FRS 1 Presentation of Financial Statement requires an entity to present all non-owner changes in the equity in a Statement of Comprehensive Income. Non-owner changes will include income and expenses recognised directly in equity. This is a change of presentation and does not affect the recognition or measurement of the entity's transactions. Previously, such non-owner changes are included in the Statement of Changes in Equity. Fourth Quarter ended 31 Dec Twelve Months ended 31 Dec Change Change $ '000 $ '000 % $ '000 $ '000 % Net profit / (loss) for the period / year Other comprehensive income : Currency translation differences Financial assets, available-for-sale - Fair value gain / (loss) 475 (2,126) N/M (419) (4,576) (91) 258 (2,398) N/M 3,259 (4,419) N/M 98 (340) N/M 400 (476) N/M 356 (2,738) N/M 3,659 (4,895) N/M Total comprehensive income / (expense) for the period / year 831 (4,864) N/M 3,240 (9,471) N/M Attributable to: Equity holders of the Company 831 (4,864) N/M 3,240 (9,471) N/M 831 (4,864) N/M 3,240 (9,471) N/M Page 3 of 12

4 1(b)(i) Balance Sheet Group Company 31 Dec Dec Dec Dec 08 $ '000 $ '000 $ '000 $ '000 Current assets Cash and cash equivalents 20,602 26,941 4,736 12,037 Trade and other receivables 17,651 23,572 14,367 16,634 Current income tax recoverable Inventories 2,663 3, Other current assets 1,857 1, ,316 56,305 20,362 29,815 Non-current asset held for sale - 1, ,316 57,774 20,362 29,815 Non-current assets Trade and other receivables ,509 11,197 Financial assets, available-for-sale 4,401 5,014 4,401 5,014 Investments in associated companies 2,589 2,290 1,298 1,298 Investments in subsidiaries - - 9,384 9,884 Property, plant & equipment 16,656 19, Intangible assets ,132 27,692 28,808 27,798 Total assets 67,448 85,466 49,170 57,613 Current liabilities Trade and other payables (12,152) (16,207) (1,625) (2,151) Current income tax liabilities (448) (465) - - Borrowings (1,620) (1,954) (34) (34) (14,220) (18,626) (1,659) (2,185) Non-current liabilities Borrowings (127) (1,359) (49) (89) Deferred income tax liabilities (1,024) (981) (41) (72) Other payables (3,654) (3,914) (1,679) (2,262) (4,805) (6,254) (1,769) (2,423) Total liabilities (19,025) (24,880) (3,428) (4,608) Net assets 48,423 60,586 45,742 53,005 Equity Share capital 40,194 40,194 40,194 40,194 Other reserves 529 (3,130) (76) (476) Retained earnings 7,700 23,522 5,624 13,287 48,423 60,586 45,742 53,005 Minority interests Total equity 48,423 60,586 45,742 53,005 Page 4 of 12

5 1(b)(ii) Group's borrowings and debt securities (a) Amount repayable in one year or less, or on demand As at 31 Dec 09 $'000 As at 31 Dec 08 $'000 Secured 680 1,433 Unsecured Sub-Total 1,620 1,954 (b) Amount repayable after one year As at 31 Dec 09 $'000 As at 31 Dec 08 $'000 Secured 127 1,359 Unsecured - - Sub-Total 127 1,359 Total Debt 1,747 3,313 (c) Details of any collateral The Group's secured borrowings include bank loans and lease liabilities. The bank loans and lease liabilities are secured by fixed charges over the plant and machinery of the subsidiaries. Page 5 of 12

6 1 (c) Consolidated Cash Flow Statement Fourth Quarter Twelve Months ended 31 Dec ended 31 Dec $ '000 $ '000 $ '000 $ '000 Cash flows from operating activities Net profit / (loss) 475 (2,126) (419) (4,576) Adjustment for: Tax expense / (credit) 150 (46) 239 (453) Depreciation and amortisation 1,600 1,072 5,625 5,797 Net loss / (gain) from sale of property, plant and equipment (110) Net loss on disposal of an investment property Impairment of property, plant and equipment Interest income (132) (172) (365) (882) Dividend income (57) (67) (232) (67) Interest expense Share of profits of associated companies (net) (82) (25) (351) (297) Operating cash flow before working capital changes 2,486 (1,262) 5,156 (90) Changes in operating assets and liabilities, Inventories 1, Trade and other receivables 1,508 1,667 5,921 10,745 Other current assets (28) Trade and other payables (1,401) 1,203 (4,555) (5,135) Currency translation differences (370) (602) 94 (943) Cash generated from operations 3,230 1,630 7,412 5,819 Income tax paid - net (288) (1,168) Net cash provided by operating activities 3,368 1,688 7,124 4,651 Cash flows from investing activities Proceeds from sale of property, plant and equipment - (76) Proceeds from sale of investment properties - - 1, Proceeds from sale of financial assets, available-for-sale - - 1,013 - Purchase of property, plant and equipment (152) (840) (930) (3,335) Purchase of financial assets, available-for-sale - (150) - (5,175) Loan to an associated company - - (100) - Interest received Dividend received Short-term deposits released / (charged) as security to bank 85 (840) 85 (840) Purchase of intangible asset (236) Net cash provided by / (used in) investing activities 122 (1,667) 2,219 (7,286) Cash flows from financing activities Proceeds from borrowings - - 1, Repayment of borrowings (386) (256) (3,429) (1,721) Interest paid (37) (27) (155) (367) Dividends paid to shareholders - - (15,403) (1,812) Net cash used in financing activities (423) (283) (17,987) (3,710) Net increase / (decrease) in cash and cash equivalents held 3,067 (262) (8,644) (6,345) Cash and cash equivalents at beginning of the period / year 14,517 25,774 24,780 32,616 Effects of exchange rate changes on cash and cash equivalents 522 (732) 1,970 (1,491) Cash and cash equivalents at end of the period / year * 18,106 24,780 18,106 24,780 * The consolidated cash and cash equivalents comprise the following: Cash and bank balances 20,602 26,941 20,602 26,941 Bank overdraft (941) (521) (941) (521) Short-term bank deposits charged as security to bank (1,555) (1,640) (1,555) (1,640) 18,106 24,780 18,106 24,780 Page 6 of 12

7 1(d)(i) Statement of Changes in Equity As at 31 Dec 2009 vs 31 Dec 2008 Attributable to equity holders of the Company Share Other Retained Minority Total GROUP Capital Reserves Earnings Total Interest Equity 2009 $'000 $'000 $'000 $'000 $'000 $'000 Balance as at 1 Jan ,194 (3,130) 23,522 60,586-60,586 Dividends relating to 2008 paid - - (15,403) (15,403) - (15,403) Total comprehensive income for the year Balance as at 31 Dec ,659 (419) 3,240-3,240 40, ,700 48,423-48,423 Share Other Retained Minority Total GROUP Capital Reserves Earnings Total Interest Equity 2008 $'000 $'000 $'000 $'000 $'000 $'000 Balance as at 1 Jan ,194 1,765 30,417 72, ,469 Others - - (507) (507) (93) (600) Dividends relating to 2007 paid - - (1,812) (1,812) - (1,812) Total comprehensive income for the year Balance as at 31 Dec (4,895) (4,576) (9,471) - (9,471) 40,194 (3,130) 23,522 60,586-60,586 Share Other Retained COMPANY Capital Reserves Earnings 2009 $'000 $'000 $'000 Total $'000 Balance as at 1 Jan ,194 (476) 13,287 53,005 Dividends relating to 2008 paid - - (15,403) (15,403) Total comprehensive income for the year Balance as at 31 Dec ,740 40,194 (76) 5,624 8,140 45,742 Share Other Retained COMPANY Capital Reserves Earnings 2008 $'000 $'000 $'000 Balance as at 1 Jan ,194-17,212 Dividends relating to 2007 paid - - (1,812) Total $'000 57,406 (1,812) Total comprehensive income for the year Balance as at 31 Dec (476) (2,113) 40,194 (476) 13,287 (2,589) 53,005 1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares for cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles, as well as the number of shares held as treasury shares, if any, against the total number of issued shares excluding treasury shares of the issuer, as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year. There were no changes in the Company's issued share capital. The Company does not have any outstanding convertibles and treasury shares as at 31 December 2009 and 31 December Page 7 of 12

8 1(d)(iii) To show the total number of issued shares excluding treasury shares as at the end of the current financial period and as at the end of the immediately preceding year. 31 Dec 09 Total number of issued shares excluding treasury shares 362,419, Dec ,419,500 1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at the end of the current financial period reported on. Not applicable. 2 Whether the figures have been audited, or reviewed and in accordance with which auditing standard or practice. The figures have not been audited or reviewed by the Company's auditors. 3 Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter). Not applicable. 4 Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied. The Group has applied the same accounting policies and methods of computation in the preparation of the financial statements for the current reporting period compared with the audited financial statements as at 31 December If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change. On 1 January 2009, the Group adopted the revised Singapore Financial Reporting Standards (FRS 1R) - Presentation of financial statements. FRS 1R requires all changes in equity arising from transactions with owners in their capacity as owners to be presented separately from components of comprehensive income. Components of comprehensive income are presented in the Consolidated Statement of Comprehensive Income. There was no impact on prior period earnings per ordinary share and net assets value per share on adoption of the revised FRS 1R. 6 Earnings per ordinary share of the group for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. Group Fourth Quarter ended Year To Date ended 31 Dec 31 Dec Based on weighted average number of ordinary (a) shares on issue 0.13 cent (0.62) cent (0.12) cent (1.26) cents (b) On a fully diluted basis 0.13 cent (0.62) cent (0.12) cent (1.26) cents Note: The earnings / (loss) per share is calculated based on weighted average number of ordinary shares in issue of 362,419,500 (2008: 362,419,500) ordinary shares. Page 8 of 12

9 7 Net asset value (for the issuer and group) per ordinary share based on the total number of issued shares excluding treasury shares of the issuer at the end of the : (a) current period reported on; and (b) immediately preceding financial year. Group Company 31 Dec Dec Dec Dec 08 Net asset value per ordinary share cents cents cents cents Note The net asset per share is calculated based on existing issued share capital of 362,419,500 (2008: 362,419,500) ordinary shares. 8 Group Performance Review A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. It must include a discussion of the following: (a) any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors; and (b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on. Twelve Months Review - FY2009 vs FY2008 The Group s revenue for the financial year ended 31 December 2009 ( FY2009 ) was $42.9 million, a decline of 27% or $15.9 million as compared to the financial year ended 31 December 2008 ( FY2008 ). The decrease in revenue was a result of the global economic slow down which had affected the customer s demand for the Group s products and services. Subsidiaries of the Group across the board in Asia and Australia suffered a reduction in sales turnover as compared to FY2008. Resulting from the reduction in the Group s annual turnover, gross profit for FY2009 declined 17% or $1.8 million from $10.5 million to $8.7 million. A one-off impairment charge of $492k on a subsidiary s fixed assets was included in the cost of sales for FY2009 which had also contributed to the decline in gross margins. Excluding this one-off impairment charge, gross profit margin % on sales had in fact improved from 17.9% in FY2008 to 21.4% in FY2009 due to the continued efforts taken by the Group to manage fixed manufacturing cost in response to the decrease in manufacturing demands. Other gains increased $3.2 million in FY2009 as compared to FY2008. This was mainly due to an exchange gain of $0.72 million recorded in FY2009 as opposed to an exchange loss of $1.4 million suffered in FY2008. The movement was mainly due to Australian dollar which had progressively recovered against Singapore dollar in FY2009 to pre-crisis levels. Other contributing factors to the increase include an additional income received under the Singapore s Job credit scheme of $400k in FY2009 and a non-recurring cost of $600k incurred in relation to the aborted acquisition of TES Group in FY2008. Distribution cost in FY2009 decreased 17% or $0.8 million as compared to FY2008. The decrease was mainly due to the reduction in selling expenses such as freight, marketing salaries and its related expenses, which was in line with the contraction in business activity. Administrative cost in FY2009 decreased by $2.5 million or 23% as compared to FY2008. The decrease in administrative expenses was a result of cost cutting measures that the Group had undertaken during FY2009 and a reduction of bad debt expense of $1 million. Finance cost reduced $0.2 million as a result of the repayment of bank borrowings during FY2009. The income tax expense in FY2009 was mainly due to tax provision for profitable subsidiaries and accounting of deferred tax. Income tax was a credit in FY2008 due to finalizing of some prior year tax. The Group s Australia subsidary had managed to reduce its losses significantly as compared to FY2008 with the recovery of Australian exchange rates, lowered operational cost due to a restructuring exercise and a reduction in bad debt expense. Accordingly, the Group s net loss in FY2009 was $0.42 million, which is a reduction of $4.15 million, as compared to a net loss of $4.57 million incurred in FY2008. Review of Group balance sheet Cash and cash equivalents had reduced by 6.3 million. This was mainly due to a dividend of $15.4 million declared for FY2008 being paid in FY2009. This reduction in cash due to dividend payout was however offset by positive cash flow generated by the operations, the sales of the Group s non-current asset held for sales (an investment property in Hong Kong) and certain of its financial assets, held for sale. Please refer to note 1(c) - consolidated cash flow statement for details. Better collections from debtors as well as receipts from TES Group being their share of the RTO expenses had resulted in reduced trade and other receivables. The decrease in trade and other payables arose mainly from the settlement of payables relating to certain work-in -progress and to complete the sales of a property in Hong Kong. Non-current asset held for sales reduced $1.5 million. This relates to a property, held by our Hong Kong subsidiary, which was disposed during 3Q FY2009. Page 9 of 12

10 Review of Company balance sheet The decrease in cash and cash equivalents of $7.3 million was mainly a result of the dividends paid in respect of FY2008 during the second quarter of FY2009 as mentioned above. The decrease in current trade and other receivables of $2.3 million was mainly due to the receipts from TES Group being their share of the RTO expenses. The increase in non-current trade and other receivables of $2.3 million was mainly due to the appreciation of A$ against S$ for the A$ denominated long term loan extended to our Australian Subsidiary. 9 Where a forecast, or a prospect statement has been previously disclosed to shareholders, any variance between it and the actual results. Not applicable 10 A commentary at the date of the announcement of the significant trends and competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months. Although the global economic environment has improved, business outlook for the Group remains to be uncertain. The business environment will remain difficult with manufacturing demands from existing customers not recovering to pre-crisis levels. Raw material prices, on the other hand, are on the increase due to the higher oil prices and tight raw material supply. The Group will continue to focus in expanding its customer base, services and explore new investment opportunities. 11 Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial year reported on? Name of Dividend: First & Final 1-tier tax exempt dividend Dividend Type: Cash Dividend Amount per Share (in cents) 0.5 cent Tax Rate: Nil (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? Name of Dividend: First & Final 1-tier tax exempt dividend Special 1-tier tax exempt dividend Dividend Type: Cash Cash Dividend Amount per Share (in cents) 0.25 cent 4 cent Tax Rate: Nil Nil (c) Date Payable To be advised (d) Books Closure Date To be advised 12 If no dividend has been declared / recommended, a statement to that effect. Not applicable Page 10 of 12

11 PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT 13 Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year. Primary reporting format - geographical segments by location of assets Asia Australia Intersegment eliminations Group Year ended 31 December 2009 $'000 $'000 $'000 $'000 External sales 21,755 21,185-42,940 Inter-segment sales 3,192 - (3,192) - 24,947 21,185 (3,192) 42,940 Segment results / operating loss (312) (661) - (973) Interest income 365 Dividend income 232 Finance expense (155) Share of profit of associated companies 351 Loss before income tax (180) Income tax expense (239) Net loss (419) Segment assets 29,869 23,505-53,374 Short-term bank deposits 6,541 Financial assets, available-for-sale 4,401 Tax recoverable 543 Investments in associated companies 2,589 Consolidated total assets 67,448 Segment liabilities 9,554 6,252-15,806 Borrowings 1,747 Current income tax liabilities 448 Deferred income tax liabilities 1,024 Consolidated total liabilities 19,025 Capital expenditure Depreciation and Amortisation 2,849 2,776 5,625 Asia Australia Intersegment eliminations Group Year ended 31 December 2008 $'000 $'000 $'000 $'000 External sales 24,785 34,080-58,865 Inter-segment sales 4, (4,273) - 29,046 34,092 (4,273) 58,865 Segment results / operating loss (1,531) (4,377) - (5,908) Interest income 882 Dividend income 67 Finance expense (367) Share of profit of associated companies 297 Loss before income tax (5,029) Income tax credit 453 Net loss (4,576) Segment assets 37,347 23,262-60,609 Short-term bank deposits 17,077 Financial assets, available-for-sale 5,014 Tax recoverable 476 Investments in associated companies 2,290 Consolidated total assets 85,466 Segment liabilities 13,704 6,417-20,121 Borrowings 3,313 Current income tax liabilities 465 Deferred income tax liabilities 981 Consolidated total liabilities 24,880 Capital expenditure 2,082 1,195 3,277 Depreciation and Amortisation 2,593 3,204 5,797 As the Group operates substantially in one business segment which is the manufacture and sale of optical disc and related data storage products, no other segment information by business segment is presented. Page 11 of 12

12 14 In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments. Explained under item 8 15 Sales and Profit Breakdown /( - ) $ '000 $ '000 % Group Group Group 15 (a) Sales reported for first half year 20,319 30,889 (34) 15 (b) (Loss) / Profit after tax before minority interest (1,085) (1,017) 7 reported for first half year 15 (c) Sales reported for second half year 22,621 27,976 (19) 15 (d) (Loss) / Profit after tax before minority interest 666 (3,559) (119) reported for second half year 16 A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year S$'000 S$'000 Ordinary shares 1,812 15,403 Preference - - Total 1,812 15, Interested Person Transactions ("IPTs") Not applicable BY ORDER OF THE BOARD Lee Kerk Chong Chairman and Managing Director 25 February 2010 Page 12 of 12