Unaudited Financial Statements and Dividend Announcement For the Six Months and Full Year ended 30 June 2021

Profit or Loss

Balance Sheet

Review of Performance

A. Consolidated Statement of Comprehensive Income (Full Year FY2021 vs FY2020)

  1. Revenue:

    Total revenue decreased by $5.8 million or 24.5% from $23.7 million in FY2020 to $17.9 million in FY2021. The decrease was mainly due to the effects of the prolonged COVID-19 situation.

    Revenue from our transport services and our security and manpower services decreased, offset by a slight increase in our engineering services. Engineering services revenue increase slightly due to improvements in the 2nd half of FY2021. Decrease in transport revenue was due to lower utilisation of buses, which resulted from less adhoc bookings, cancellation of school CCA activities, lower ridership of premium bus services, and cancellation of some contracts due to more work-from-home arrangements. Decrease in security and manpower revenue was mainly due to reduction in the number of technicians deployed in the aviation industry

  2. Cost of Sales:

    Cost of sales decreased by $5.2 million or 24.7% from $21.1 million in FY2020 to $15.9 million in FY2021. This decrease was in tandem with the decrease in revenue.

  3. Gross Profit:

    Due to the decrease in revenue, gross profit decreased correspondingly by $0.6 million or 22.8% from $2.6 million in FY2020 to $2.0 million in FY2021. Overall gross profit margins remained largely unchanged. However, margin for transport services declined slightly due to some fixed costs: depreciation, direct staff costs, maintenance costs.

  4. Other Income:

    Other income increased from $2.1 million in FY2020 to $2.8 million in FY2021 This was due to government grants received during the year such as those under the Special Employment Credit, the Job Support Scheme, Foreign Workers Levy Rebates, and MAS grant for IPO funding.

  5. Administrative Expenses:

    Increase in administrative expenses was mainly due to IPO expenses of $1.2 million, as well as increase in administrative and management staff costs.

  6. Other Expenses:

    Decrease in other expenses was mainly due to lower losses on disposal of property plant and equipment, scaffolding assets, as well as lower impairment losses on trade receivables.

  7. Finance Costs:

    Increase in finance costs due to interest costs from bank borrowings, as a result of increase in bank borrowings.

B. Consolidated Statement of Financial Position as at 30 June 2021

  1. Non-Current Assets:

    Non-current assets decreased to S$11.2 million as at 30 June 2021 from S$11.8 million as at 30 June 2020, due mainly to depreciation of property, plant and equipment, offset by additions during the year.

  2. Current Assets:

    Current assets increased marginally to $14.8 million as at 30 June 2021 from S$14.5 million as at 30 June 2020. This was due mainly to increase in cash and cash equivalents, partially offset by decrease in trade and other receivables. Increase in cash and equivalent was due to drawdown of a bank facility, as well as proceeds from the IPO. Trade and other receivables decreased accordingly with decrease in contracts and revenue.

  3. Non-Current Liabilities:

    Non-current liabilities increased to S$2.4 million as at 30 June 2021 from S$1.9 million as at 30 June 2020. This was due mainly to a drawdown of a bank facility, partially offset by decrease in lease liabilities.

  4. Current Liabilities:

    Current liabilities decreased to S$7.0 million at 30 June 2021 from S$9.7 million as at 30 June 2020 due mainly to decrease in lease liabilities and trade and other payables. Decrease in lease liabilities was due to instalment repayments of leases. Decrease in trade and other payables was due mainly to the payment of dividends declared in June 2020.

C. Consolidated Statement of Cash Flows (FY2021)

  1. Net cash from operating activities in FY2021 amounted to S$4.7 million. This was due mainly to a positive operating cash flow before working capital changes of S$1.3 million. Working capital changes amounted to S$3.3 million due mainly to decrease in trade and other receivables.

  2. Net cash used in investing activities in FY2021 amounted to S$1.7 million. This was due mainly to acquisition of property, plant and equipment.

  3. Net cash from financing activities in FY2021 amounted to S$0.6 million. This was due to gross proceeds from the IPO of S$3.2 million, the drawdown of a bank loan, partially offset by repayments of lease liabilities and loans and borrowings, and payment of dividends.

Commentary

The Group results will continue to be affected by the impact caused by the prolonged COVID-19 situation. The overall economic condition is not expected to recover fully, and the Group expects that all its business segments shall continue to be adversely affected.

In addition, grants from the Singapore government to provide financial assistance to Singapore companies affected by the COVID-19 situation are expected to decrease.

espite the challenging environment, the Group remains focused on its efforts to implement its business strategies to increase revenue, and take advantage of any improvements in the economic situation.

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