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Financial Statements Announcement for the 12 Months Ended 31 March 2021

Consolidated Income Statement

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Consolidated Statement of Comprehensive Income

Statement of Financial Position

Statement of Financial Position

Review of performance

Consolidated Income Statement

2HFY21 – for the 6 months ended 31 March 2021
1HFY21 – for the 6 months ended 30 September 2020
2HFY20 – for the 6 months ended 31 March 2020
FY21 – for the 12 months ended 31 March 2021
FY20 – for the 12 months ended 31 March 2020

Review of Results for the 12 Months Ended 31 March 2021

Review of Results


The Group recorded a 48.0% decline in full-year revenue of $178.3 million for FY21, compared to $342.8 million in FY20.

The Group's operations were affected in 1HFY21 by the stoppages of construction activities due to the imposition of the Circuit Breaker ("CB") in Singapore from 6 April 2020 to 1 June 2020, and Movement Control Order ("MCO") in Malaysia from 18 March 2020 to 3 May 2020.

On the back of resumption of activities at the Group’s project sites in 2HFY21, revenue for 2HFY21 more than doubled to $125.5 million, from $52.8 million in 1HFY21.

Nevertheless, the pace of work resumption was slow and gradual, resulting in lower overall productivity compared to the pre-CB/MCO period due to a shortage of manpower and safe management measures imposed by the relevant government authorities. The MCO 2.0 in Malaysia from 13 January 2021 to 4 March 2021 also affected the activity levels in the last financial quarter of FY21.

Gross Profit/(Loss) and Gross Profit/(Loss) Margins

In line with the significantly reduced activities year-on-year as well as costs associated with the implementation of safe-management practices at the various project sites, the Group recorded lower gross profit of $10.9 million (FY20: $44.2 million) and gross profit margin of 6.1% in FY21 (FY20: 12.9%).

This took into account the turnaround in performance that yielded a gross profit of $17.3 million and gross profit margin of 13.8% in 2HFY21, compared to a gross loss of $6.5 million recorded in 1HFY21.

The disruption in the global supply chain, along with shortages of key construction materials and manpower, had adversely affected the construction activities. Additional costs were also incurred to comply with safety and other pandemic control measures required. Such cost impact was mitigated by negotiations initiated by the management with suppliers and business partners for reduced rental charges during CB/MCO period and locked-in prices for key construction materials.

The Group received $8.1 million and $1.7 million of COVID-19 support grants from the Singapore government in FY21 and 2HFY21 respectively, mainly through the Jobs Support Scheme and foreign workers’ levy rebates.

Other Income

Other Income

The Group recorded higher other income of $3.9 million for FY21 (FY20: $2.2 million). This took into account the $2.8 million gain from the disposal of leasehold property located at No 2, Tanjong Penjuru Crescent ("2TPC") to a joint venture with LOGOS group in 1HFY21.

Other income for 2HFY21 was lower at $0.5 million compared to $1.0 million in 2HFY20 and $3.3 million in 1HFY21, mainly due to a smaller gain from the disposal of old equipment and leasehold property in 2HFY21.

Operating Expenses

Operating Expenses

Other operating expenses for FY21 and 2HFY21 declined by 14.7% and 9.7% to $24.2 million (FY20: $28.4 million) and $12.3 million (2HFY20: $13.6 million) respectively, as the Group implemented a series of cost management measures, such as salary reduction for middle and senior level employees and mandatory clearance of annual leave across the board. Standing in solidarity with the Company, members of the Board also took a voluntary reduction in their directors’ fees.

The Group recorded an exchange loss of $0.8 million for FY21 and 2HFY21 (FY20: $0.6 million; 2HFY20: $0.8 million). The higher exchange loss was mainly due to the weakening of local currencies in the countries of which the Group operates, especially Hong Kong and Malaysia. In addition, the strengthening of Chinese Renminbi against Singapore Dollar also led to the higher realised exchange loss arising from payments to China suppliers in FY21.

The $2.5 million COVID-19 support grants from Singapore government, mainly through the Jobs Support Scheme and foreign workers’ levy rebates, also helped to defray the operating expenses incurred in FY21.

Compared to 1HFY21, other operating expenses increased by 3.7% in view of the higher business activities in 2HFY21.

Net Finance Expenses

Net Finance Expenses

Net interest expenses were lower at $2.6 million for FY21 (FY20: $4.3 million) and $1.2 million for 2HFY21 (2HYFY20: $2.1 million), mainly due to a reduction in overall borrowings as a result of net repayment of debt during the financial year. The lower interest rates charged by financial institutions during the periods also contributed to the decrease in net interest expenses.

Profit/(Loss) for the period/year

The Group recorded net profit before tax of $1.4 million in 2HFY21, a turnaround from a loss before tax of $13.7 million in 1HFY21 with a positive earnings before interest, tax, depreciation and amortization (EBITDA) of $15.0 million (1HFY21: $0.1 million).

Year-on-year, net loss before tax was $12.4 million for FY21 as compared to a net profit of $8.5 million for FY20 due to lower level of business activities in 1HFY21. EBITDA remained positive at $15.1 million in FY21 (FY20: $40.8 million).

Earnings per share for 2HFY21 was 0.07 cent (1HFY21: loss per share of 0.50 cent). Loss per share for FY21 was 0.37 cent (FY20: earnings per share of 0.23 cent).

Statement Of Financial Position

Non-Current Assets

Property, Plant and Equipment

Net book value of property, plant and equipment as at 31 March 2021 was $125.0 million (31 March 2020: $132.5 million).

In FY21, the Group took delivery of $8.4 million worth of new plant and equipment as part of our fleet renewal plan. In addition, inventories amounting to $7.2 million were capitalised as property, plant and equipment following the reassessment of the economic uses of these inventories. The Group disposed of plant and equipment with carrying values of $0.5 million and recorded a $0.4 million gain on the disposal. Depreciation charge for FY21 was $20.8 million (FY20: $24.8 million).

Investment in Associates

Investment in associates increased to $3.3 million (31 March 2020: $0.5 million), taking into account a $3.8 million investment made in 2TPC Investments Pte Ltd for the redevelopment of the leasehold property, 2TPC.

Net Current Assets

As at 31 March 2021, net current assets stood at $18.2 million (31 March 2020: $8.1 million). Current ratio (current assets / current liabilities) was 1.11 (31 March 2020: 1.04).

The Group held lower inventories of $31.4 million at 31 March 2021 (31 March 2020: $31.9 million) following the sales of equipment and accessories in FY21.

Trade and other receivables and contract assets reduced by $21.6 million (31 March 2020: $130.7 million). The reduction was due to lower business activities and management’s efforts in engaging clients to recover receivables and overdue payments.

As at 31 March 2021, assets held for sale reduced to $0.6 million (31 March 2020: $21.1 million) following the disposal of 2TPC.

Trade and other payables and contract liabilities reduced by $13.1 million (31 March 2020: $99.4 million) in line with the lower level of business activities.

Loans and Borrowings

To better manage its cash flow which was affected by the work stoppage during the CB/MCO period in 1HFY21, the Group drew down term loans under the Temporary Bridging Loan Programme that was supported by Enterprise Singapore, for working capital purposes. However, the Group’s loans and borrowings fell to $76.7 million as at 31 March 2021 (31 March 2020: $88.0 million) due to lower use of project financing facilities and net repayment of debt in FY21. The net repayment of debt included a $3.7 million loan repayment following the disposal of 2TPC in May 2020.

The debt-to-equity ratio as at 31 March 2021 was 0.52 (31 March 2020: 0.58).

Equity and Net Asset Value

During the year under review, the Group received $9.7 million from the conversion of 970,037,840 warrants pursuant to the Rights-cum-Warrants Issue on 30 December 2015 ("the Warrants"), which expired on 29 December 2020. A total of 1,954,863,210 warrants, represented 96.96% of the Warrants, were exercised into ordinary shares upon the expiry of the Warrants on 29 December 2020 (refer to "Changes in the Company's Share Capital" section on page 25 for details).

As at 31 March 2021, the Group's equity stood at $147.7 million (31 March 2020: $151.6 million), while net asset value per ordinary share was 4.1 cents due to the dilutive effect resulting from the above conversion of warrants (31 March 2020: 5.8 cents).

Cash Flow

Cash Flow

Cash Flow from Operating Activities

The Group generated net cash inflow of $24.5 million from operating activities for FY21 (FY20: $38.8 million), in spite of the net loss recorded. This was a result of focused working capital management and active effort to expedite the collections of receivables.

For 2HFY21, net cash inflow was $18.2 million (2HFY20: $22.7 million; 1HFY21: $6.3 million). Cash flow improved from 1HFY21 after taking into account the net profit recorded in 2HFY21.

Cash Flow from Investing Activities

The Group recorded a net cash inflow from investing activities of $4.6 million for FY21, compared to a net cash outflow of $3.2 million in FY20, mainly due to the receipt of $16.9 million from the disposal of 2TPC. At the same time, the Group invested $8.0 million in the redevelopment of 2TPC.

Net cash outflow for 2HFY21 was $7.3 million (2HFY20: $0.6 million; 1HFY21: inflow of $11.9 million).

Cash Flow from Financing Activities

The Group recorded net cash outflow from financing activities of $12.0 million for FY21 (FY20: $28.5 million) and $0.5 million for 2HFY21 (2HFY20: $16.0 million; 1HFY21: $11.4 million), following the net repayment of bank borrowings during the periods.

The lower cash outflow in 2HFY21 was also contributed by the cash fund of $8.6 million received from the exercise of warrants in 2HFY21.

Cash and Cash Equivalents

Taking into consideration all the above, the Group's cash and cash equivalents stood at $31.3 million as at 31 March 2021 (31 March 2020: $14.3 million; 30 September 2020: $21.0 million).


The Group is cautiously optimistic about the outlook of the Singapore construction industry in financial year 2022.

According to a Singapore Market Insight Report by Turner & Townsend dated 14 April 2021, the Singapore construction sector is anticipated to generate higher output in 2021, on the back of a backlog of projects arising from the pandemic in 2020, and stronger demand for public housing and infrastructure projects. Estimates by the Building and Construction Authority (BCA) also point to healthy demand for construction services, valued at between S$23 billion and S$28 billion.

Nevertheless, the Group remains mindful of the competition prevailing, following the construction lull in financial year 2021. Construction margins are also expected to come under pressure amid rising key construction material and manpower costs. Key construction material and consumable costs such as rebar and diesel have increased by 20% to 30% since November 2020. In addition, the tightening of border restrictions in Singapore on 23 April 2021 has exacerbated the manpower shortage situation.

The implementation of MCO 3.0 in Malaysia from 12 May 2021 to 7 June 2021 is expected to further impact the Group's construction activities in Malaysia, which contributes approximately 10% of the Group's annual turnover.

In this regard, the Group will maintain a prudent approach towards tenders for construction projects. To manage the increasing key construction material costs, the Group has further negotiated for key construction materials to be supplied by main contractors or project owners at fixed rates for the majority of its recently secured projects.

The Group will continue to focus on managing asset utilisation and the optimisation of cost and operational efficiencies to reinforce its competitive position. Capital and cash flow management remain key priorities as the Group maintains a tight rein on costs.

As at 28 May 2021, the Group's order book was approximately $160 million (4 November 2020: $170 million).

Page Last Updated: 29/05/2021.