Full Year Financial Statement for the Year Ended 31 December 2004

Transcription

1 Full Year Financial Statement for the Year Ended 31 December (a) An income statement (for the ) together with a comparative statement for the corresponding period of the immediately preceding financial year. Notes S$' 000 S$' 000 Change (%) increase / (decrease) Revenue 28,652 22, Cost of sales (24,937) (20,089) 24.1 Gross profit 3,715 2, Distribution costs (1,267) (1,081) 17.2 General and administrative costs (5,685) (5,173) 9.9 Operating loss (3,237) (4,165) (223) Other income (i) 1,350 1, Finance costs, net (ii) (210) (183) 14.8 Share of results from associated company Loss before income tax (iii) (1,997) (3,143) (36.5) Income tax (iv) (76) 260 n.m. Loss after income tax (2,073) (2,883) (28.1) Minority interest, net of income tax (8) 20 n.m. Loss after income tax attributable to members of the Company transferred to accumulated loss (2,081) (2,863) (27.3) n.m. = not meaningful Notes: Notes (i) (ii) Notes S$' 000 S$' 000 Other Income Waste wood collection income Other Income Total 1,350 1,135 Finance Costs, net Interest income in respect of :- - fixed deposits 1 1 Interest expense in respect of:- - finance leases (2) (3) - bank overdrafts (69) (25) - term loans (140) (156) Total (210) (183) Full Year Financial Statement for the Year Ended 31 December 2004 Page 1 of 12

2 Notes Notes S$' 000 S$' 000 (iii) (iv) Loss before income tax is stated after (charging) / crediting Amortisation of intangible assets (28) (28) Depreciation of fixed assets (2,658) (2,781) Directors' fees (118) (110) Fixed assets written off (54) (27) (Provision)/Writeback for doubtful debt (167) 8 Provision for stock obsolescence (81) (75) Staff cost:- CPF and other define contribution plans (275) (340) Salaries wages and other costs (4,543) (5,015) Gain/(loss) on disposal of fixed assets 39 (3) Foreign currency exchange gain / (loss) 64 (2) Income Tax Charge for income tax in respect of loss for the year:- -Current tax (13) (29) -Deferred tax (41) (25) Over / (under) provision in respect of prior years:- -Current tax (5) 337 -Deferred tax 2 0 Associated company (19) (23) Total (76) 260 There was no investment income during the year There was no extraordinary item There was no sales of property or plants and equipment Full Year Financial Statement for the Year Ended 31 December 2004 Page 2 of 12

3 1(b)(i) A balance sheet (for the issuer and ), together with a comparative statement as the end of the immediately preceding financial year. Notes Company As at As at As at As at S$ 000 Non-Current Assets Intangible assets Fixed assets 18,876 20,529 16,327 17,977 Investments -Subsidiary companies - - 2,696 2,655 -Associated company ,567 21,258 19,328 20,957 Current Assets Stocks 5,911 5,792 5,122 4,490 Trade debtors (1) 5,286 4,101 4,161 3,305 Amounts due from related companies (3) ,904 2,690 Other debtors Fixed deposits Cash and bank balances (2) 712 1, ,143 12,530 12,475 13,279 12,404 Less: Current Liabilities Trade creditors and accruals (1) 4,298 3,562 3,403 2,436 Amount due to related companies ,982 1,111 Other creditors Lease creditors Amounts due to bankers, secured (3) 4,388 3,173 4,294 3,173 Amounts due to bankers, unsecured (3) Provision for income tax ,171 8,268 10,659 7,892 Net Current Assets 2,359 4,207 2,620 4,512 Non-Current Liabilities Lease creditors Amounts due to bankers, secured (3) 1,321 2,815 1,321 2,815 Deferred income tax ,492 2,909 1,382 2,815 20,434 22,556 20,566 22,654 Share Capital & Reserves Share capital para 1d(i) 21,298 21,298 21,298 21,298 Share premium 3,323 3,323 3,323 3,323 Foreign currency translation reserve (199) (150) - - Accumulated loss (4,004) (1,923) (4,055) (1,967) 20,418 22,548 20,566 22,654 Minority interests ,434 22,556 20,566 22,654 Full Year Financial Statement for the Year Ended 31 December 2004 Page 3 of 12

4 Notes: (1) The increase in trade debtors from $4.10 million to $5.29 million was due to increase in sales from customers. The increase in trade creditors from $3.56 million to $4.30 million was due to increase in purchases from suppliers. (2) The decrease in cash and bank balances from $1.77 million to $0.71 million was due mainly to increase in payment made to suppliers. (3) The decrease in the amounts due to bankers from $6.89 million to $6.20 million was due to repayment long term borrowings to banks. 1(b)(ii) Aggregate amount of s borrowings and debt securities. Amount repayable in one year or less, or on demand As at As at Secured Unsecured Secured Unsecured 4, , Amount repayable after one year As at As at Secured Unsecured Secured Unsecured 1, ,815 0 Details of any collateral The Company and the subsidiary, Siri Belukar Packaging Sdn Bhd, have executed debentures creating fixed and floating charge over certain assets in favour of the DBS Bank Limited, Malayan Banking Berhad and United Overseas Bank Limited. The term loans are secured by first legal mortgage over the leasehold factory buildings and fixed charge over plant and machinery. The term loans with a carrying amount of $4.20 million are repayable over a maximum period of 3 years and bear interest at rates ranging from 1.88% to 2.57% (2003: 1.75% to 2.35%) per annum. The bank overdrafts of $1.51 million are secured by first legal mortgage over leasehold factory buildings and bear interest at rate ranging from 5.00% to 6.25% (2003: 5.25% to 5.50%) per annum. The unsecured short term loans of $0.4 million are repayable within 4 months and bearing interest rate ranging from 3.38% to 6.25% (2003:3.80% to 3.90%) per annum. Full Year Financial Statement for the Year Ended 31 December 2004 Page 4 of 12

5 1(c) A cash flow statement (for the ), together with a comparative statement for the corresponding period of the immediately preceding financial year. Consolidated Cash Flow Statements for the financial year ended 31st December 2004 Total Total Cash flows from operating activities: Loss before income tax (1,997) (3,143) Adjustments for: Interest expense Interest income (1) (1) Depreciation of fixed assets 2,658 2,781 (Gain)/Loss on disposal of fixed assets (39) 3 Amortisation of intangible assets Share of results of associated company (100) (70) Fixed assets written off Currency realignment 1 (1) Operating cashflow before reinvestment in working capital 815 (192) (Increase) / decrease in debtors (1,008) (40) (Increase) /decrease in stocks (73) (75) Increase /(decrease) in creditors 1, Cash (used in) / generated from operations 788 (91) Interest received 1 1 Interest paid (211) (184) Income taxes paid (40) (29) Income tax refund - 0 Net cash (used in) / generated from operating activities 538 (303) Cash flows from investing activities: Proceeds from disposal of fixed assets Purchase of fixed assets (1,162) (897) Dividends from associated company, net Net cash used in investing activities (1,025) (531) Cash flows from financing activities: Increase in hire purchase loan Repayment of hire purchase loan (14) (949) Repayment of term loans (10,606) (6,097) Term loans obtained 9,033 7,627 Net cash provided / (used in) by financing activities (1,456) 581 Net (decrease) / increase in cash and cash equivalents (1,943) (253) Cash and cash equivalents at beginning of year ,349 Cash and cash equivalents at end of year (847) 1,096 Full Year Financial Statement for the Year Ended 31 December 2004 Page 5 of 12

6 Note: Cash and cash equivalents included in the consolidated cash flow statement comprise the following balance sheet amounts: Total Total Fixed deposits Cash and cash balances 712 1,768 Bank overdraft (1,590) (703) Total (847) 1,096 1(d)(i) A statement (for the issuer and ) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year. Statement of Changes in Shareholder's Equity for the Financial Year Ended 31 December Share capital Share premium Currency translation reserve Accumulated loss Total Balance at 1 January ,298 3,323 (150) (1,923) 22,548 Loss for the year (2,081) (2,081) Translation difference for the year (49) (49) Balance at 31 December ,298 3,323 (199) (4,004) 20,418 Company Balance at 1 January ,298 3,323 0 (1,967) 22,654 Loss for the year (2,088) (2,088) Balance at 31 December ,298 3,323 0 (4,055) 20,566 Share capital Share premium Currency translation reserve Accumulated loss Balance at 1 January ,298 3,323 (130) ,431 Loss for the year (2,863) (2,863) Translation difference for the year (20) (20) Balance at 31 December ,298 3,323 (150) (1,923) 22,548 Total Company Balance at 1 January ,298 3, ,185 Loss for the year (2,531) (2,531) Balance at 31 December ,298 3,323 0 (1,967) 22,654 Full Year Financial Statement for the Year Ended 31 December 2004 Page 6 of 12

7 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 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. As at December 2004, the Company's issued and paid up capital comprises 212,980,000 (December 31, 2003:212,980,000) ordinary shares of $0.10 each. 2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice. The figures have not been audited nor reviewed. 3. Where the figures have been audited or reviewed, the auditors report (including any qualifications or emphasis of a 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 same accounting policies and methods of computation have been applied in the financial statements as 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. Not applicable 6. Earnings per ordinary share of the for the current financial period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends. Loss per share (cents) (i) Base on weighted average number of ordinary share in issue Change (%) (0.98) (1.34) (27.3) (ii) On a fully diluted basis (0.98) (1.34) (27.3) Note: The loss per share are calculated based on weighted average share capital of 212,980,000 (2003: 212,980,000) ordinary shares in issue during the year. Full Year Financial Statement for the Year Ended 31 December 2004 Page 7 of 12

8 7. Net asset value (for the issuer and ) per ordinary share based on issued share capital of the issuer at the end of the:- (a) current financial period reported on; and (b) immediately preceding financial year. Net asset value per Ordinary Share (cents) based on issued share capital at the end of financial year Company +/(-)% +/(-)% (9.4) (9.2) 8. A review of the performance of the, to the extent necessary for a reasonable understanding of the s business. It must include a discussion of the following:- (a) any significant factors that affected the turnover, costs, and earnings of the 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 during the current financial period reported on. The 's revenue increased by 29.2% to $28.65 million. Revenue from pallet, packaging and trading of timber related products increased by 15.1% and 74.8% to $17.08 million and $8.08 million respectively. Revenue from technical wood products, which included technical wood and technical wood flooring, increased to $1.81 million, or 38.7% from last year. The loss before income tax reduced substantially to $2.00 million against loss before income tax of $3.14 million for last year, which was due mainly to increased demand and sales volume for its pallet products and technical wood, from both local and overseas markets. Despite this improvement in demand and sales volume, the still sustained loss mainly attributable to the followings: (1) There was increase in raw timber price in 2004, which eroded the profit margin of pallet and packaging products. (2) The acceptance of the technical wood flooring product remained slow resulting in lower sales and operating loss for this business. (3) Although the demand for technical wood from overseas market has improved over the year, it was insufficient to contribute to the s profit due to the competitive pricing. (4) Administrative expenses increased as there were more promotion, travelling and representative office s expenses incurred to procure sales in China market. The operating loss after tax was reduced to $2.03 million against a loss after income tax of $2.88 million in year Full Year Financial Statement for the Year Ended 31 December 2004 Page 8 of 12

9 Segment overview The following review should be read in conjunction with paragraph 13 on segmented revenue and results for business. Pallet / Packaging The increase in revenue of the pallet /packaging business segment from $14.85 million to $17.08 million was mainly due to generally improved economy in Singapore. The reduction in operating loss from $0.95 million to $0.13 million in this business segment was due to higher sales volume. Timber related products The increase in revenue of timber related products from $4.62 million to $8.08 million was due to the increased trading activities in the Japanese market. Technical wood products The increase in revenue of technical wood products from $1.30 million to $1.81 million was due mainly to increased demand for technical wood from overseas markets. The reduction in operating loss from $2.04 to $1.56 million was due to increased sales volume and higher waste wood collection income. There are no other material factors that affected the cash flow, working capital, assets or liabilities of the except those stated in paragraph 1(b)(i) "Balance Sheet's notes (1) to (3)". 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 operates and any known factors or events that may affect the in the next reporting period and the next 12 months. Overview The intends to take advantage of the improved economy and demand for its products to generate more sales of pallet and packaging products, environmentally friendly technical wood and flooring products in the coming years. It will also continue with its promotional activities in China and other international markets to generate more sales. Pallet / packaging Technical wood is deemed to comply with the recently implemented ISPM (International Standard for Phytosanitary Measures), whereby all wood packaging materials used in international trade have to take phytosanitary measures to reduce the risk of introduction and spread of quarantine pests. The will take advantage of this trend and continue to expand its technical wood pallet business including ECR (efficient consumer response) pallet as it has established awareness of the products over the years. Timber related products The will continue to expand its trading activities in Japan and China through its subsidiary LHT Marketing Pte Ltd. Technical wood products Due to marketing and promotional efforts undertaken in past years, increasing acceptance of Full Year Financial Statement for the Year Ended 31 December 2004 Page 9 of 12

10 environmentally friendly technical wood and the implementation of ISPM, the expects increased orders for Technical Wood both from the international and local markets. Others The will implement the Radio Frequency Identification (RFID) System, which is a computerised inventory monitoring and control system particularly useful in our pallet rental business. The expects the investment to improve operational control, efficiency and increase in the customer base. Potential business factors and risk (1) The 's pallet business will be affected by the fluctuation of timber price as the material cost forms a significant portion of the cost of production. To reduce the impact of material cost the has moved its production base to Malaysia where it can have direct access to timber suppliers. (2) The acceptance of the environmental-friendly technical wood products, ECR pallets and flooring products will continue to have and impact on the 's business. 11. Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? None (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? None (c) Date payable Not applicable. (d) Books closure date Not applicable. 12. If no dividend has been declared/recommended, a statement to that effect. Not applicable. 13. Segmented revenue and results for business or geographical segments (of the ) in the form presented in the issuer s most recently audited annual financial statements, with comparative information for the immediately preceding year. Full Year Financial Statement for the Year Ended 31 December 2004 Page 10 of 12

11 By Industry Segment Pallet / Packaging Timber Related Products Technical Wood Products Others Adjustments and Elimination Consolidated Sales to external customers 17,083 14,847 8,075 4,620 1,809 1,304 1,685 1,407 28,652 22,178 Inter-segment 8,001 6,595 4,060 2, (13,059) (10,116) sales Total revenue 25,084 21,442 12,135 7,356 2,773 2,089 1,719 1,407 (13,059) (10,116) 28,652 22,178 Segment results (131) (945) (3) 139 (1,559) (2,069) (386) 271 (1,887) (3,030) Finance cost, net - (210) (183) Share of results from associated company Loss before (1,997) (3,143) income tax Income tax (76) 260 Minority interest, (8) 20 net of income tax Net loss after income tax (2,081) (2,863) By Geographical Location Singapore Others Adjustments and elimination Consolidation Sales to external customers 27,471 21,517 1, ,652 22,178 Inter-segment sales 1,872 1,342 11,187 8,774 (13,059) (10,116) - - Total revenue 29,343 22,859 12,368 9,435 (13,059) (10,116) 28,652 22,178 Other segment information Segment assets 28,611 29,908 3,082 3,440 (258) (277) 31,435 33,071 Investment in associated company Unallocated assets Total assets 32,097 33,733 Capital expenditure , In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments. Refer to paragraph A breakdown of sales. Full Year Financial Statement for the Year Ended 31 December 2004 Page 11 of 12

12 Change (%) Sales reported for the first half year 13,244 10, Operating loss after tax before deducting minority (1,324) (1,072) 23.5 interests reported for first half year Sales reported for second half year 15,408 11, Operating profit / (loss) after tax before deducting minority interests reported for second half year (708) (1,811) (60.9) 16. A breakdown of the total annual dividend (in dollar value) for the issuer s latest full year and its previous full year. Latest Full Year () Previous Full Year () Ordinary 0 0 Preference 0 0 Total: 0 0 BY ORDER OF THE BOARD Neo Koon Boo Managing Director 25/02/2005 (DD/MM/YYYY) Full Year Financial Statement for the Year Ended 31 December 2004 Page 12 of 12