YONGNAM HOLDINGS LIMITED Co. Reg. No N

Transcription

1 YONGNAM HOLDINGS LIMITED Co. Reg. No N FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE PERIOD ENDED 30 JUNE (a) GROUP INCOME STATEMENT Group 2Q Q 2010 Fav / Fav / (Unfav) 30/06/10 (Unfav) $'000 $'000 % $'000 $'000 % Revenue 82,487 84,118 (1.9) 157, ,154 (5.9) Cost of sales (58,105) (59,750) 2.8 (108,100) (118,437) 8.7 Gross profit 24,382 24, ,179 48, Other income (93.9) (90.9) General and administrative expenses (5,562) (6,691) 16.9 (11,560) (14,026) 17.6 Interest income 1 48 (97.9) 7 59 (88.1) Finance costs (775) (1,033) 25.0 (1,619) (2,181) 25.8 Share of results of joint venture - - nm - (306) Profit before tax 18,057 16, ,032 32, Taxation (3,007) (3,542) 15.1 (5,981) (6,142) 2.6 Net profit attributable to shareholders of the Company 15,050 13, ,051 26, nm - not meaningful Profit before tax is arrived at after charging/(crediting): (Gain)/ Loss on disposal of propery, plant & equipment (77) (21) (130) 166 Depreciation 5,474 4,766 10,470 8,788 Provision for doubtful debt Page 1 of 6

2 1(b)(i) BALANCE SHEET Group Company 31/12/ /12/2010 $'000 $'000 $'000 $'000 Non-current assets Property, plant and equipment 285, , Investment in subsidiaries ,026 39,026 Amount due from subsidiaries ,249 84,772 Amount due from joint ventures 1,135 1, Other investment Trade debtors - 3, , , , ,798 Current assets Steel materials, at cost 70,735 71, Gross amount due from customers for contract work-in-progress 87,475 95, Trade debtors 67,231 55, Sundry debtors and deposits 4,140 3, Prepayments 939 1, Cash and bank balances 18,562 20, , , Current liabilities Gross amount due to customers for contract work-in-progress 33,639 34, Trade creditors 61,964 67, Other creditors and accruals 16,756 22, Borrowings 73,125 60,440 10,000 - Hire purchase creditors 8,138 8, Provision for taxation , ,654 10, Net current assets 54,639 53,803 (10,306) (164) Non-current liabilities Borrowings 45,675 57, Hire purchase creditors 7,719 9, Deferred taxation 30,245 24, ,639 92, Net assets 257, , , ,634 Equity Share capital 97,089 93,022 97,089 93,022 Reserves 160, ,537 19,880 30, , , , ,634 Increase in property, plant and equipment was due mainly to purchases of struts and cranes required for various new projects. Trade debtors (non-current) has been transferred to current trade debtors as the amount is expected to be repaid within 12 months. Trade debtors were higher due to increased billings for work done. Trade creditors decreased due to completion and final settlement of certain projects. Reduction in other creditors and accruals was mainly due to the settlement of certain obligations. Net borrowings decreased due to lower working capital requirements. Page 2 of 6

3 1(b)(ii) GROUP BORROWINGS AND DEBT SECURITIES Secured Unsecured Secured Unsecured Amount repayable in one year or less, or on demand 35,338 45,925 47,083 22,122 Amount repayable after one year 53,394-67, Details of collateral: As at 30/06/11 As at 31/12/10 Certain group borrowings (including HP creditors) are secured by way of a fixed charge on certain assets of the Group's principal subsidiaries. $'000 $'000 1(c) GROUP CONSOLIDATED CASH FLOW STATEMENT 2Q Q 2010 $'000 $'000 $'000 $'000 Operating activities Profit before tax 18,057 16,871 36,032 32,539 Add/(less): Depreciation 2,699 2,457 5,019 4,418 Interest income (1) (48) (7) (59) Interest expense 775 1,033 1,619 2,181 Provision for doubtful debt (Profit)/loss on disposal of property, plant & equipment (77) (21) (130) 166 Share of results of a joint venture Effects of changes in foreign exchange 133 (136) (203) (1,156) Share-based compensation Operating cash flows before changes in working capital 21,779 20,156 42,523 38,672 Decrease in steel materials and work-in-progress 20,463 18,602 21,499 28,892 Increase in trade and other debtors (20,077) (6,696) (8,743) (3,686) Increase/(Decrease) in trade and other creditors 6,338 (8,836) (11,351) (20,093) Increase in amount due from joint ventures (2) (3,920) (9) (4,920) Cash flows from operations 28,501 19,306 43,919 38,865 Income tax paid - (315) (2) (306) Interest received Interest paid (775) (1,033) (1,619) (2,181) Net cash flows from operating activities 27,727 18,006 42,305 36,437 Investing activities Purchase of property, plant & equipment (24,485) (12,698) (33,873) (35,478) Proceeds from disposal of property, plant & equipment 279 1, ,388 Proceeds from disposal of asset held for sale - 14,186-14,186 Net cash flows (used in)/from investing activities (24,206) 2,641 (33,383) (19,904) Financing activities Dividend paid (8,145) (6,203) (8,145) (6,203) Proceeds from borrowings 26,163 1,351 45,059 32,858 Repayment of borrowings (9,988) (8,531) (44,583) (42,964) Decrease in pledged fixed deposit and bank balances ,861 Hire purchase instalments paid (2,342) (3,617) (4,699) (3,868) Issuance of ordinary shares ,383 1,144 Net cash flows from/(used in) financing activities 5,762 (15,837) (10,985) (17,172) Net increase/(decrease) in cash and cash equivalents 9,283 4,810 (2,063) (639) Cash and cash equivalents as at beginning of period 9,279 9,964 20,625 15,413 Cash and cash equivalents as at end of period 18,562 14,774 18,562 14,774 Cash and cash equivalents comprise: Cash and bank balances 18,562 14,792 18,562 14,792 Bank overdraft - (18) - (18) 18,562 14,774 18,562 14,774 Note:- Depreciation charge for 2Q FY2011 amounted to approximately $5,474,000 (2Q FY2010: $4,766,000 ) of which approximately $2,775,000 (2Q FY2010: $2,309,000) had been allocated to work in progress. Depreciation charge for the half-year ended 30 June 2011 ("1H FY2011") amounted to approximately $10,470,000 (1H FY2010: $8,788,000) of which approximately $5,451,000 (1H FY2010: $4,370,000) had been allocated to work in progress. In Q2 2010, cash and cash equivalents exclude approximately $1,434,000 being pledged bank balances of certain subsidiaries for the payment of interest on certain borrowings over the next 12 months. Page 3 of 6

4 1(d)(i) STATEMENT OF COMPREHENSIVE INCOME 2Q Q 2010 Group Fav/(Unfav) Fav/(Unfav) $'000 $'000 % $'000 $'000 % Profit after tax 15,050 13, ,051 26, Foreign currency translation (1,063) (47) (2,161.7) (1,424) Total comprehensive income 13,987 13, ,627 27, (d)(ii) STATEMENT OF CHANGES IN EQUITY Foreign currency Share Capital Share option translation Retained capital reserves reserves reserves earnings Total $'000 $'000 $'000 $'000 $'000 $'000 GROUP Balance at 1 January ,022 17,434 12,800 (2,887) 115, ,559 Total comprehensive income for the period (361) 15,001 14,640 Issuance of shares 1, ,311 Balance at 31 March ,333 17,432 12,800 (3,248) 130, ,508 Total comprehensive income for the period (1,063) 15,050 13,987 Dividend on ordinary shares (8,145) (8,145) Issuance of shares 2,756 - (2,682) Balance at 30 June ,089 17,432 10,118 (4,311) 137, ,424 Balance at 1 January ,509 17,436 12,589 (959) 66, ,567 Total comprehensive income for the period ,068 13,944 Issuance of shares Grant of equity-settled share options Balance at 31 March ,871 17,436 12,866 (83) 80, ,150 Total comprehensive income for the period (47) 13,329 13,282 Dividend on ordinary shares (6,203) (6,203) Issuance of shares Balance at 30 June ,655 17,434 12,866 (130) 87, ,011 COMPANY Balance at 1 January ,022 10,597 12,800-7, ,634 Total comprehensive income for the period Issuance of shares 1, ,311 Balance at 31 March ,333 10,595 12,800-7, ,950 Total comprehensive income for the period Dividend on ordinary shares (8,145) (8,145) Issuance of shares 2,756 - (2,682) Balance at 30 June ,089 10,595 10,118 - (833) 116,969 Balance at 1 January ,509 10,599 12,589-17, ,503 Total comprehensive income for the period Issuance of shares Grant of equity-settled share options Balance at 31 March ,871 10,599 12,866-17, ,160 Total comprehensive income for the period Dividend on ordinary shares (6,203) (6,203) Issuance of shares Balance at 30 June ,655 10,597 12,866-11, ,750 1(d)(iii)&(iv) SHARE CAPITAL For the period from 1 April 2011 to 30 June 2011, 399,000 shares were issued pursuant to the exercise of 396,000 employee share options and 3,000 warrants. As at 30 June 2011, there were: (a) 86,587,000 (30 June 2010: 96,947,000) unissued ordinary shares relating to options granted and unexercised under the Employee Share Option Scheme. (b) 364,729,244 (30 June 2010: 364,785,244) unissued ordinary shares relating to outstanding warrants. As at 30 June 2011, the total number of issued shares was 1,253,204,502 (31 December 2010: 1,245,064,502). Page 4 of 6

5 2 AUDIT These figures have not been audited or reviewed by the auditors. 3 AUDITOR'S REPORT Not applicable. 4 ACCOUNTING POLICIES The Group has adopted the same accounting policies and methods of computation in the financial statements for the current reporting period as those in the financial year ended 31 December 2010, except as disclosed in paragraph 5 below. 5 CHANGES IN ACCOUNTING POLICIES The Group adopted the new/revised FRS and Interpretations of FRS ("INT FRS") that are effective for annual periods beginning on or after 1 January Changes to the Group's accounting policies have been made as required, in accordance with the transitional provisions in the respective FRS and INT FRS. The adoption of these FRS and INT FRS did not have any significant impact on the financial statements of the Group. 6 EARNINGS PER SHARE Earnings per share for the period based on net profit attributable to shareholders:- 2Q 2011 Group (cents) 2Q 2010 (i) Based on weighted average number of shares in issue (ii) On a fully diluted basis The computation of basic earnings per share for 2Q FY2011 is based on the weighted average number of shares of 1,253,176,835 (2Q FY2010: 1,242,054,835) and weighted average number of shares for diluted earnings of 1,300,289,152 (2Q FY2010: 1,276,526,488). The computation of basic earnings per share for the period ended 1H FY2011 is based on the weighted average number of shares of 1,250,731,835 (1H FY2010: 1,237,837,835) and weighted average number of shares for diluted earnings of 1,297,844,228 (1H FY2010: 1,272,309,488). 7 NET ASSET VALUE PER SHARE Group (cents) Company (cents) 31/12/ /12/2010 Net asset value per share REVIEW OF THE PERFORMANCE OF THE GROUP The Group continued to perform well for the quarter ended 30 June 2011 ( 2QFY2011 ), with a 12.9% increase to $15.1 million in net profit, from $13.3 million in the corresponding quarter ( 2QFY2010 ), notwithstanding a marginal 1.9% drop in revenue to $82.5 million. With key contribution from the Marina Coastal Expressway, MRT Downtown Line 2, Hong Kong MTR and the New Doha International Airport projects, revenue from Specialist Civil Engineering increased by 17.7%, from $34.0 million in 2QFY2010 to $40.0 million in 2QFY2011. However, with the substantial completion of the remaining projects at Marina Bay Sands Integrated Resort in FY2010, Yongnam saw a decrease of 15.2% in revenue from Structural Steelworks, from $50.1 million in 2QFY2010 to $42.5 million in 2QFY2011. On-going projects like Vista Xchange at One-North, Gardens by the Bay, International Cruise Terminal and Mumbai International Airport were the key contributors to Structural Steelworks revenue in the quarter under review. In view of the increase in higher margin Specialist Civil Engineering projects, the Group s gross profit margin improved from 29.0% in 2QFY2010 to 29.6% in 2QFY2011. The Group s profit before tax registered a 7.0% improvement to $18.1 million in 2QFY2011, from $16.9 million in 2QFY2010. General and administrative expenses decreased by 16.9% to $5.6 million, due largely to decrease in staff costs and increase in foreign exchange gains. Finance costs decreased by 25.0% to $0.8 million mainly due to lower borrowings. Accordingly, group profit after tax increased by 12.9% to $15.1 million. Supported by its improved bottomline, the Group s earnings per share grew 12.1% from 1.07 Singapore cents in 2QFY2010 to 1.20 Singapore cents in 2QFY2011. Net asset value per share increased from Singapore cents as at 31 December 2010 to Singapore cents as at 30 June Yongnam s net gearing improved from 0.49 times as at 31 December 2010 to 0.45 times as at 30 June Page 5 of 6

6 9 Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results The results are in line with prospect statement made in results announcement for the financial period ended 31 March A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or event that may effect the group in the next reporting period and the next 12 months Prospects for the Group continue to be promising. In 2QFY2011, the Group secured four new projects, comprising a $75 million structural steelworks contract for the Singapore Sports Hub, a $19.0 million contract for the new National University Hospital Medical Centre, a $50.0 million for the National Art Gallery and a $49 million specialised civil engineering contract for the Hong Kong Section of the Express Rail Link. In addition, there is a healthy pipeline of potential infrastructural projects in Singapore, including the MRT Downtown Line 3 as well as other commercial projects. Overseas, the Group is pursuing infrastructural projects like MRT projects in addition to commercial projects in Hong Kong, Malaysia, India, Indonesia and Saudi Arabia. As at 30 June 2011, Yongnam s order book remained strong at $509 million, compared to $410 million booked as at 31 March Consequently, the Group is optimistic that it will perform well in FY DIVIDEND (a) Current financial period reported on None (b) Corresponding period of the immediately preceding financial year None 12 If no dividend has been declared / recommended, a statement to the effect No dividend has been recommended for the period ended 30 June Negative assurance The Board of Directors hereby confirms that, to the best of its knowledge, nothing has come to its attention which may render the financial results for the 6 months ended 30 June 2011 to be false or misleading. BY ORDER OF THE BOARD SEOW SOON YONG Chief Executive Officer CHIA SIN CHENG Finance & Executive Director Date: 8 August 2011 Page 6 of 6