IR Overview
Financial Information

Financial Statements And Related Announcement - Full Yearly Results

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Review of Group Performance

For 1Q2017, the Group’s revenue increased by 63.2% to S$34.4 million as compared with revenue for 1Q2016 as a result of increase in projects completed during the quarter from the Hospitality and commercial segment.

The gross margin decreased from 22.9% in 1Q2016 to 18.8% for 1Q2017, as a result of lower margins recorded in projects completed during the quarter. Marketing and distribution expenses increased from S$1.2 million in 1Q2016 to S$1.5 million in 1Q2017, mainly due to increase in staff costs.

Marketing and distribution expenses increased from S$1.3 million in 4Q2015 to S$2.1 million in 4Q2016, mainly due to increase in staff costs and showroom expenses.

General and administrative expenses increased from S$1.5 million in 1Q2016 to S$2.6 million in 1Q2017. The increase was mainly due to an increase in staff cost, and higher foreign exchange loss vs a foreign exchange gain in 1Q2016.

As a result, the Group achieved higher profit before tax of S$2.4 million for 1Q2017, an increase of 6.1% as compared with S$2.3 million for 1Q2016. After taking into account tax expenses, the Group’s net profit after tax was S$1.8 million for 1Q2017.

Balance Sheet (31 March 2017 vs 31 December 2016)

Property, plant and equipment decreased by S$1.0 million mainly due to depreciation charges.

Contracts work-in-progress increased by S$3.3 million to S$8.6 million [Note 1(b)(4)] as at 31 March 2017 due to higher amount of work-in-progress pending certification by clients as at 31 March 2017.

Total current trade receivables decreased to S$41.7 million [Note 1(b)(1)] as at 31 March 2017 as compared with S$66.2 million as at 31 December 2016. The decrease is mainly due to collections from customers during the current period and the decrease in revenue for 1Q2017 as compared to 4Q2016.

Other receivables and deposits decreased by S$1.2 million to S$5.5 million [Note 1(b)(1)]. The decrease was mainly due to less deposits made to suppliers and subcontractors in the current period.

Trade payables decreased by S$20.1 million to S$40.0 million [Note 1(b)(5)]. The decrease was mainly due to payment made to creditors during the period and lower accruals of project-related expenses due to less projects in the current period.

Accrued operating expense decreased by S$3.3 million to S$3.8 million [Note 1(b)(5)]. The decrease was mainly due to the payment of bonus in 1Q2017.

Balance Sheet

Cash Flow
1Q2017 vs 1Q2016

For 1Q2017, there was net cash inflow of S$0.8 million, mainly from operating activities.


We expect the operating environment in the key markets in which we operate to remain challenging in FY2017.

We are cautiously optimistic about the outlook and expect to maintain its momentum in securing projects. The Group continues to see opportunities and prospects in Singapore and Malaysia, underpinned by a thriving tourism and hospitality sector that continues to increase demand for hotel accommodation. This demand is expected to fuel the fit-out industry through the refurbishment of existing hotels and new builds.

The Group remains well-positioned to navigate current volatile market conditions, with an order book of S$152.5 million, a strong balance sheet and a healthy cash position of S$54.6 million as at 31 March 2017