Half Year Financial Statement And Dividend Announcement 2012

Financials Archive

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Half-Year Financial Statement For The Six Months Ended 31 December 2011

Balance Sheet

Review of Performance

Income Statement

Revenue

The Group's revenue decreased by approximately S$7.5 million from approximately S$19.1 million in 1H2011 to approximately S$11.5 million in 1H2012. Revenue from new acquisition Eng Seng Plastics decreased by approximately S$3 million. TTL Promex Manufacturing Shanghai and Scintronix Manufacturing Malaysia also experienced a decrease in sales by approximately S$4.5 million. Main reason for the reduction was due to the difficult market conditions.

Gross Profit

The Group's overall gross profit decreased by approximately S$2.3 million from approximately S$2.2 million in 1H2011 to approximately (S$0.1) million in 1H2012. The decrease in gross profit was mainly due to higher production and labour cost.

Other Income/Bargain Purchase

The Group's other income decreased by S$2.1 million from approximately S$2.2 million in 1H2011 to approximately S$0.09 million in 1H2012, mainly due to one off bargain purchase on acquisition in the previous year.

Selling and distribution

Selling and distribution expense increased by approximately S$0.01 million from approximately S$0.03 million in 1H2011 to approximately S$0.04 million in 1HFY2012. This was mainly due to higher marketing expenses.

Administrative Expenses

Administrative expense decreased by approximately S$0.5 million from approximately S$2.4 million in 1HFY2011 to approximately S$1.9 million in 1HFY2012. This was mainly due to the reduction of headcount costs.

Operating Expenses

Operating expenses remained as S$0.3 million from 1H2011.

Finance expenses

The Group's finance expenses increased by approximately S$0.31 million from (S$0.01) million in 1HFY2011 to approximately S$0.3 million in 1H2012. This was mainly due to an increase in trade financing and bank borrowings.

Balance Sheet

Currents assets

The Group's current assets increased approximately by S$0.7 million from S$27.0 million in 1H2011 to approximately S$27.7 million in 1H2012. This is due to an increase in trade receivables ofS$2.2million, reduction of inventory S$0.3 million and reduction in cash of $1.2 million.

Non-current Assets

Non-current assets increased from S$22.6 million in 1H2011 to S$25.8 million in 1H2012 mainly due to an increase in plant and equipment of S$3.0 million.

Current Liabilities

The Group's current liabilities decreased by S$2.4 million from S$23.3 million in 1H2011 to S$20.9 million in 1HFY2012. This was largely due to a decrease in trade payables and borrowings.

Commentary On Current Year Prospects

The business environment in the plastic industry remains competitive and challenging in the next 12 months. We are experiencing a slowdown in orders in the region we are operating in.

We will continue to focus on cost control measures and consolidate our resources to mitigate the risks brought about by a slowing economy and enhance our product offering to address new emerging markets.