FINANCIAL HIGHLIGHTS
Extracted from Annual Report dated 11 April 2025
OPERATIONS & FINANCIAL REVIEW
OPERATIONS & FINANCIAL REVIEW
REVIEW OF INCOME STATEMENT
REVENUE
The Group’s revenue increased by S$23.9 million or 37.3% from S$64.2 million in FY2023 to S$88.1 million in FY2024.
The increase in revenue in FY2024 was mainly due to higher revenue contributions from the IBS and M&E business segments as more projects were completed during FY2024, partially offset by a decrease in revenue from the A&A business segment as a number of projects were substantially completed in FY2023.
During FY2024, the Group also generated rental and related income from investment property following the completion of the acquisition of the entire issued and paid-up capital of Wan Dormitory Pte. Ltd., which owns a property situated at 180 Woodlands Industrial Park E5, Singapore 757512 (the “Acquisition”), on 19 March 2024.
GROSS PROFITS
The Group’s gross profits increased by S$5.9 million or 130.4% from S$4.5 million in FY2023 to S$10.4 million in FY2024.
The overall gross profit margin of the Group was higher in FY2024 as compared to FY2023. The increase was mainly due to significant work progress on our IBS and M&E projects in FY2024.
For the A&A business segment, the Group recorded gross losses in FY2024 mainly due to increased subcontracting costs and the requirement for additional manpower to meet project deadlines, particularly for projects secured prior to the COVID-19 pandemic and which were significantly completed in FY2024.
OTHER INCOME
The Group’s other income decreased by S$1.0 million or 69.5% from S$1.4 million in FY2023 to S$0.4 million in FY2024. The decrease was mainly due to a decrease in interest income from fixed deposits, a decrease in gain on disposal of property, plant and equipment and absence of the administrative charge to a subcontractor in FY2024 as compared to FY2023.
DISTRIBUTION COSTS
The Group’s distribution costs decreased by S$24,000 or 38.1% from S$63,000 in FY2023 to S$39,000 in FY2024. The decrease was mainly due to a decrease in entertainment expenses.
ADMINISTRATIVE EXPENSES
The Group’s administrative expenses increased by S$0.5 million or 9.0% from S$5.1 million in FY2023 to S$5.5 million in FY2024. The increase was mainly attributable to the professional fees incurred in relation to the Acquisition.
LOSS ALLOWANCE ON FINANCIAL ASSETS AND CONTRACT ASSETS
The Group’s loss allowance on financial assets and contract assets increased by S$0.4 million from S$4,000 in FY2023 to S$0.4 million in FY2024. The increase was mainly attributable to the loss allowance on long-outstanding trade receivables and progress claims from customers.
FINANCE COSTS
The Group’s finance costs increased by S$0.8 million or 142.0% from S$0.6 million in FY2023 to S$1.4 million in FY2024. The increase was mainly due to interest expense on the bank financing drawn down for partial payment of the consideration for the Acquisition.
PROFIT/(LOSS) FOR THE FINANCIAL YEAR
As a result of the above, the Group recorded a profit for the financial year of S$2.4 million in FY2024 as compared to a loss for the financial year of S$0.2 million in FY2023.
REVIEW OF FINANCIAL POSITION
The Group’s net asset value attributable to owners of the Company increased from S$27.6 million as at 31 December 2023 to S$30.0 million as at 31 December 2024, mainly due to an increase in accumulated profits.
The Group’s current assets decreased by S$4.3 million or 8.0%, from S$54.0 million as at 31 December 2023 to S$49.7 million as at 31 December 2024, mainly due to a decrease in (i) trade and other receivables primarily as more payments were received from customers; and (ii) contract assets due to a transfer of contract assets to trade receivables upon invoicing following the receipt of architects’ certification. These decreases were partially offset by an increase in cash and bank balances and inventories.
The Group’s non-current assets increased by S$21.2 million or 197.1%, from S$10.7 million as at 31 December 2023 to S$31.9 million as at 31 December 2024, mainly due to the increase in investment property following the completion of the Acquisition on 19 March 2024.
The Group’s current liabilities increased by S$0.5 million or 1.5%, from S$32.9 million as at 31 December 2023 to S$33.4 million as at 31 December 2024, mainly due to an increase in trade and other payables attributable to an increase in purchases from subcontractors and the deferred payment due to the vendor following the completion of the Acquisition, partially offset by a decrease in borrowings due to reduced trust receipts financing.
The Group’s non-current liabilities increased by S$14.0 million or 333.3%, from S$4.2 million as at 31 December 2023 to S$18.2 million as at 31 December 2024, mainly due to the bank financing drawn down for partial payment of the consideration for the Acquisition.
REVIEW OF CASH FLOWS
The Group’s net cash generated from operating activities in FY2024 was mainly due to operating profit, an increase in other payables, a decrease in trade and other receivables and movement in contract assets and liabilities, partially offset by an increase in inventories and a decrease in trade payables.
The Group’s net cash used in investing activities was mainly due to the acquisition of an investment property arising from the completion of the Acquisition.
The Group’s net cash used in financing activities was mainly due to a net decrease in bank borrowings and interest paid. As a result of the above, there was a net increase of S$0.2 million in cash and cash equivalents from a net cash balance of S$7.1 million as at 31 December 2023 to S$7.3 million as at 31 December 2024.