YONGNAM HOLDINGS LIMITED Co. Reg. No N

Transcription

1 YONGNAM HOLDINGS LIMITED Co. Reg. No N FINANCIAL STATEMENTS ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER (a) GROUP PROFIT AND LOSS ACCOUNT Fav / FY2009 FY2008 (Unfav) $'000 $'000 % Revenue 346, , Cost of sales (266,455) (269,500) 1.1 Gross profit 80,366 68, Other income General and administrative expenses (27,760) (26,110) (6.3) Interest income Finance costs (4,748) (5,435) 12.6 Share of results of joint venture 363 (66) nm Profit before tax 48,813 36, Taxation (8,741) (2,776) (214.9) Net profit attributable to shareholders of the Company 40,072 33, nm - not meaningful Profit before tax is arrived at after charging: Loss on disposal of property, plant & equipment (288) (1,392) Depreciation (17,067) (8,118) Provision for call on performance bond (1,389) - Page 1 of 7

2 1(b)(i) BALANCE SHEET Company 31/12/09 31/12/08 31/12/09 31/12/08 $'000 $'000 $'000 $'000 Non-current assets Property, plant and equipment 229, , Investment property - 13, Investment in subsidiaries ,128 39,125 Amount due from subsidiaries ,815 89,273 Investment in joint ventures 3, Other investment Fixed deposits 1, Bank balances - 1,826-1, , , , ,322 Current assets Asset held for sale 14, Steel materials, at cost 61,640 61, Gross amount due from customers for contract work-in-progress 131, , Trade debtors 47,823 36, Sundry debtors and deposits 6,730 4, Prepayments 1,964 1, Cash and bank balances 17,299 38,321 2,015 1, , ,573 2,015 1,919 Current liabilities Gross amount due to customers for contract work-in-progress 38,559 31, Trade creditors 80,602 93, Other creditors and accruals 31,527 23, Provision 5,901 1, Borrowings 58,855 20, Hire purchase creditors 8,069 3, Provision for taxation 1, , , Net current assets 56,625 87,409 1,560 1,529 Non-current liabilities Borrowings 76,840 90, Hire purchase creditors 15,311 8, Deferred taxation 10,901 3, , , Net assets 187, , , ,715 Equity Share capital 91,509 90,172 91,509 90,172 Reserves 96,054 57,570 40,994 41, , , , ,715 Increase in property, plant and equipment was due mainly to purchases of struts, cranes and equipment required for various new projects. Increase in work in progress was in line with the increased activities. Net borrowings increased due to higher working capital requirements. Investment property has been reclassified as asset held for sale as an option to purchase was executed in February Page 2 of 7

3 1(b)(ii) GROUP BORROWINGS AND DEBT SECURITIES As at 31/12/09 As at 31/12/08 $'000 $'000 Secured Unsecured Secured Unsecured Amount repayable in one year or less, or on demand 47,293 19,631 24,195 - Amount repayable after one year 89,976 2,175 99,558 - Details of collateral: borrowings (including HP creditors) are secured by way of a fixed charge on certain assets of the 's principal subsidiaries. 1(c) GROUP CONSOLIDATED CASH FLOW STATEMENT FY2009 FY2008 $'000 $'000 Operating activities Profit before tax 48,813 36,713 Add/(less): Depreciation 7,067 5,616 Interest income (32) (28) Interest expense 4,748 5,435 Loss on disposal of property, plant & equipment 288 1,392 Impairment loss on investment securities Share of results of a joint venture (363) 66 Effects of changes in foreign exchange 66 (27) Share-based compensation 4,288 5,609 Operating cash flows before changes in working capital 64,875 54,886 Decrease/(Increase) in steel materials and work-in-progress 11,315 (21,421) Increase in debtors (12,983) (13,567) (Decrease)/Increase in creditors (7,607) 55,959 Cash flows from operations 55,600 75,857 Income tax paid (1,078) (597) Interest received Interest paid (4,748) (5,435) Net cash flows from operating activities 49,806 69,852 Investing activities Legal expenses reimbursed in respect of an investment property Investment in a joint venture (2,550) (532) Purchase of property, plant & equipment (86,059) (72,258) Proceeds from disposal of property, plant & equipment 2,587 3,498 Net cash flows used in investing activities (86,022) (69,007) Financing activities Proceeds from borrowings 38,832 29,363 Repayment of borrowings (12,500) (10,706) Decrease in pledged fixed deposit and bank balances 783 2,083 Hire purchase instalments paid (6,741) (3,037) Dividend paid on ordinary shares (4,895) - Issuance of ordinary shares 1, Net cash flows from financing activities 16,769 17,771 Net (decrease)/increase in cash and cash equivalents (19,447) 18,616 Cash and cash equivalents as at beginning of year 34,860 16,244 Cash and cash equivalents as at end of year 15,413 34,860 Cash and cash equivalents comprise: Cash and bank balances 15,413 36,393 Bank overdraft - (1,533) 15,413 34,860 Note:- Depreciation charge for 2009 amounted to approximately $17,067,000 (2008: $8,118,000) of which approximately $10,000,000 (2008: $2,502,000) had been allocated to work in progress. Cash and cash equivalents exclude approximately $3,294,000 (2008: $4,078,000) being pledged fixed deposits and bank balances of certain subsidiaries for the payment of interest on certain borrowings over the next 12 months. Page 3 of 7

4 1(d)(i) STATEMENT OF COMPREHENSIVE INCOME FY2009 FY2008 Fav/(Unfav) $'000 $'000 % Profit after tax 40,072 33, Foreign currency translation (934) (516) (81.01) Total comprehensive income 39,138 33, (d)(ii) STATEMENT OF CHANGES IN EQUITY Foreign Retained currency earnings/ Share Capital Share option translation (accumulated capital reserves reserves reserves loss) Total $'000 $'000 $'000 $'000 $'000 $'000 GROUP Balance at 1 January ,172 17,483 8,300 (28) 31, ,742 Total comprehensive income for the year (934) 40,072 39,138 Dividend on ordinary shares (4,895) (4,895) Issuance of shares 1, ,337 Conversion of warrants - (47) (47) Grant of equity-settled share options - - 4, ,288 Balance at 31 December ,509 17,436 12,588 (962) 66, ,563 Balance at 1 January ,096 17,491 2, (2,122) 108,644 Total comprehensive income for the year (516) 33,937 33,421 Issuance of shares Conversion of warrants - (8) (8) Grant of equity-settled share options - - 5, ,609 Balance at 31 December ,172 17,483 8,300 (28) 31, ,742 COMPANY Balance at 1 January ,172 10,646 8,300-22, ,715 Total comprehensive income for the year Dividend on ordinary shares (4,895) (4,895) Issuance of shares 1, ,337 Conversion of warrants - (47) (47) Grant of equity-settled share options - - 4, ,289 Balance at 31 December ,509 10,599 12,589-17, ,503 Balance at 1 January ,096 10,654 2,691 - (15,494) 87,947 Total comprehensive income for the year ,091 38,091 Issuance of shares Conversion of warrants - (8) (8) Grant of equity-settled share options - - 5, ,609 Balance at 31 December ,172 10,646 8,300-22, ,715 1(d)(iii)&(iv) SHARE CAPITAL For the period of 1 October 2009 to 31 December 2009, 571,000 shares were issued pursuant to the exercise of 5,000 warrants and 566,000 employee share options. As at 31 December 2009, there were: (a) 108,119,000 (31 December 2008: 88,051,000) unissued ordinary shares relating to options granted and unexercised under the Employee Share Option Scheme. (b) 364,839,244 (31 December 2008: 369,564,330) unissued ordinary shares relating to outstanding warrants. As at 31 December 2009, the total number of issued shares was 1,231,955,502 (31 December 2008: 1,217,482,983). 2 AUDIT These figures have not been audited or reviewed by the auditors. 3 AUDITOR'S REPORT Not applicable. 4 ACCOUNTING POLICIES The 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 2008, except as disclosed in paragraph 5 below. Page 4 of 7

5 5 CHANGES IN ACCOUNTING POLICIES With effect from January 1, 2009, the adopted the following new/amended FRS 1 (revised) FRS 23 (revised) FRS 108 Amendments to FRS 107 Presentation of Financial Statements Borrowing Costs Operating Segments Improving Disclosures about Financial Instruments The adoption of the above FRS does not have any significant impact on the financial statements. 6 EARNINGS PER SHARE Earnings per share for the year based on net profit attributable to shareholders:- (cents) FY2009 FY2008 (i) Based on weighted average number of shares in issue (ii) On a fully diluted basis The computation of basic earnings per share for the year ended 31 December 2009 is based on the weighted average numbe of shares of 1,226,033,071 (2008: 1,217,482,983) and weighted average number of shares for diluted earnings of 1,257,075,951 (2008: 1,224,354,660). 7 NET ASSET VALUE PER SHARE (cents) Company (cents) 31/12/09 31/12/08 31/12/09 31/12/08 Net asset value per share REVIEW OF THE PERFORMANCE OF THE GROUP revenue for the financial year ended 31 December 2009 ( FY2009 ) increased marginally by 2.7%, from $337.6 million in FY2008 to $346.8 million. The completed the New Delhi Airport project in June 2009 and the Dubai Metro project had been substantially completed by the third quarter of FY2009. The reduced contributions from these two major overseas projects were off-set by increased activities in a number of Structural Steelworks and Specialist Civil Engineering projects in Singapore. Notwithstanding the marginal increase in revenue, gross profit increased by 18.0% to $80.4 million in FY2009 compared to $68.1 million in FY2008. The continued to enjoy good margins in FY2009. Structural Steelworks increased marginally from $254.2 million in FY2008 to $256.8 million in FY2009. Although the New Delhi Airport project had been completed and the Dubai Metro Rail project was substantially completed, these were offset by increased activities and higher contributions from the s multiple contracts at the MBS in Singapore and the commencement of Vista Xchange at One-North project. Specialist Civil Engineering increased by 7.8% from $83.4 million in FY2008 to $89.9 million in FY2009, mainly due to strong contributions from the MCE projects. Geographically, Singapore remained the core contributor, with revenue growing 67.2% to $260.3 million compared to $155.7 million in FY2008. With the substantial completion of the Dubai Metro Rail project, revenue from Middle East declined 55.6% to $63.6 million. Profit before tax increased to $48.8 million, a 33.0% improvement over the $36.7 million achieved in FY2008. The better performance was achieved despite a 6.3% increase in general and administrative expenses to $27.8 million as a result of increased staff costs, professional fees and repairs to premises. Finance costs decreased by 12.6% to $4.7 million mainly due to lower bank charges and interest. Accordingly, profit after tax increased by 18.1% to $40.1 million. Earnings per share improved by 17.2% to 3.3 cents and group net asset value increased by 3.1 cents, from 12.1 cents as at 31 December 2008 to 15.2 cents as at 31 December 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 3rd quarter ended 30 September Page 5 of 7

6 10 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 The continues to perform well with active participation in ongoing mega projects in Singapore, including the MCE, Vista Xchange at One-North and MBS. Prospects for the remain attractive. Potential contracts from Singapore infrastructural projects include the Singapore Sports Hub and the MRT Downtown Line Phase 2, which are expected to be up for tender in In addition, the continues to actively pursue projects in Hong Kong, Abu Dhabi, Saudi Arabia and India. New contracts worth approximately $340 million were secured in FY2009. As at 31 December 2009, outstanding order book remains strong at $492 million. 62% of these outstanding contracts is expected to be completed in FY2010. The expects a steady stream of contracts flowing into FY2010. Consequently, the is optimistic that it will perform well in FY DIVIDEND (a) Current financial period reported on Name of Dividend : Ordinary Share First and Final Dividend (Proposed) Dividend Type : Cash Dividend Rate : 0.5 Singapore cent per ordinary share Tax Rate : Tax exempt (One-tier) Book Closure Date : To be announced in due course Payment Date : To be announced in due course (b) Corresponding period of the immediately preceding financial year Name of Dividend : Ordinary Share First and Final Dividend Dividend Type : Cash Dividend Rate : 0.4 Singapore cent per ordinary share Tax Rate : Tax exempt (One-tier) Date paid : 21 May If no dividend has been declared / recommended, a statement to the effect Not applicable 13 SEGMENTAL INFORMATION Year ended 31 December 2009 Middle Singapore East Malaysia Others Eliminations $'000 $'000 $'000 $'000 $'000 $'000 Revenue External customers 260,334 63,612 2,091 20, ,821 Inter-segment revenue ,117 - (23,117) - Total revenue 260,334 63,612 25,208 20,784 (23,117) 346,821 Result Segment result 47,789 (575) 4,349 1, ,529 Finance income 32 Finance cost (4,748) Profit before tax 48,813 Tax (8,741) Profit after tax 40,072 Middle Singapore East Malaysia Others Eliminations $'000 $'000 $'000 $'000 $'000 $'000 Year ended 31 December 2008 Revenue External customers 155, ,342-38, ,623 Inter-segment revenue ,905 - (12,905) - Total revenue 155, ,342 12,905 38,601 (12,905) 337,623 Result Segment result 23,159 17,404 (3,162) 3,540 1,180 42,121 Finance income 27 Finance cost (5,435) Profit before tax 36,713 Tax (2,776) Profit after tax 33,937 FY2009 FY2008 $'000 $'000 Structural steelworks 256, ,163 Specialist civil engineering 89,938 83,404 Mechanical engineering , ,623 Page 6 of 7

7 14 Breakdown of sales and profit after tax increase/ FY2009 FY2008 (decrease) $'000 $'000 % (a) Sales reported for first half year 183, , (b) Profit after tax for first half year 20,744 13, (c) Sales reported for second half year 163, ,873 (19.8) (d) Profit after tax for second half year 19,328 20,466 (5.6) BY ORDER OF THE BOARD SEOW SOON YONG Chief Executive Officer CHIA SIN CHENG Finance & Executive Director Date: 27 February 2010 Page 7 of 7