This printed article is located at http://ryobi.listedcompany.com/financials.html

Financials

Third Quarter and Nine Months 2018 Financial Statements Announcement

Financials Archive

Get Adobe Reader Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

INCOME STATEMENT FOR THE THIRD QUARTER ("3Q2018") AND NINE MONTHS ENDED 31 MARCH 2018 ("9M2018")

Statement of Comprehensive Income for the Third Quarter and Nine Months Ended 31 March 2018

Balance Sheet

Review of the performance

Review on Group's Financial Results

9 months ended 31 March 2018 (9M2018) vs 9 months ended 31 March 2017 (9M2017)

The Group reported revenue of $122.7 million in 9M2018, an increase of $20.7 million or 20.3% from $102.0 million in 9M2017. The increase was primarily from the Group's bored piling operation as a result of higher value of work undertaken in the current period.

Cost of sales increased from $87.8 million in 9M2017 to $111.6 million in 9M2018, in tandem with the increase in business activities.

The Group registered a gross profit of $11.1 million in 9M2018. The gross profit margin decreased as a result of higher operating costs incurred for projects during the current period.

Other income increased from $1.7 million in 9M2017 to $2.9 million in 9M2018, mainly due to the increase in sales of minor and other assets.

The increase in administrative expenses from $14.0 million in 9M2017 to $15.5 million in 9M2018 was mainly due to the increase in administrative staff costs.

The Group reversed from other gains of $1.4 million in 9M2017 to other losses of $1.4 million in 9M2018. Other losses in 9M2018 include loss on disposal of available-for-sale financial assets of $1.6 million and exchange loss of $1.7 million. The losses were offset by a gain on disposal of property, plant and equipment of $1.8 million. Other gains in 9M2017 was mainly related to exchange gain of $1.4 million.

The higher finance costs in 9M2018 was as a result of increase in borrowings.

The income tax expense was in relation to the profitable entities within the Group

As a result of the above, the Group registered a loss for the period of $6.3 million in 9M2018.

3 months ended 31 March 2018 (3Q2018) vs 3 months ended 31 March 2017 (3Q2017)

The Group reported revenue of $28.0 million in 3Q2018, a decrease of $11.7 million or 29.5% from $39.7 million in 3Q2017. The decrease in revenue was due to lower value of work undertaken in the current period and prolong work phase of some projects.

Cost of sales decreased from $34.1 million in 3Q2017 to $25.8 million in 3Q2018, in tandem with the decrease in business activities.

The Group registered a decrease gross profit of $3.4 million in 3Q2018 compared to 3Q2017. The decrease in gross profit was as a result of decrease in revenue and higher operating costs incurred for projects during the current period. Accordingly, the gross profit margin decrease from 14.2% in 3Q17 to 7.9% in 3Q18.

Other income increased from $0.4 million in 3Q2017 to $1.1 million in 3Q2018, mainly due to the increase in sales of minor and other assets.

The increase in administrative expenses from $4.7 million in 3Q2017 to $5.9 million in 3Q2018 was mainly due to increase in administrative staff costs.

The increase in other losses was mainly due to loss on disposal of available-for-sale financial assets of $1.6 million and an increase in exchange loss of $0.7 million.

The income tax expense was in relation to the profitable entities within the Group.

As a result of the above, the Group registered a loss for the period of $6.7 million in 3Q2018.

Review of Statements of Financial Position and Cash Flow

Current Assets

Current assets increased by $11.1 million were mainly attributable to the followings:

  1. Increase in construction work-in-progress of $22.3 million mainly due to higher costs incurred in excess of value of work done for the on-going projects.

Partially offset by:

  1. Decrease in cash and cash equivalents of approximately $8.5 million as a result of cash flow generated from financing activities of $6.8 million offset by cash flow used in operating activities and investing activities amounted to $15.3 million.

  2. Decrease in trade receivables of $2.4 million was mainly due to collection received.

Non-Current Assets

Non-current assets decreased by $6.9 million were mainly attributable to the followings:

  1. Decrease in property, plant and equipment of $5.1 million mainly due to depreciation charge of $12.0 million, which was partially offset by additions of property, plant and equipment of $7.4 million.

  2. Decrease in available-for-sale financial assets of $1.8 million mainly due to funds received and disposal.

Current Liabilities (excluding borrowings)

Decrease in trade and other payables of $3.1 million was mainly due to decrease in accruals and payments made to trade payables during the current period.

Total Borrowings

Net increase in total borrowings was in line with the increase in business activities during the period.

Commentary

Outlook

Ministry of Trade and Industry Singapore announced on 13 April 2018 that the growth in the construction sector contracted by 4.4 per cent on a year-on-year basis in the first quarter of 2018, extending the 5.0 per cent decline in the previous quarter. The contraction was largely due to a fall in both private sector and public sector construction activities.

The Group's net order book as at 31 March 2018 stood at $168.9 million, comprising projects from public infrastructure, public housing, residential, commercial and geoservices.

The Group expects the construction sector to remain challenging. External factors such as keen competition, rising costs and the tight labour market will continue to add pressure on the Group's performance. Accordingly, it is unlikely that there will be an improvement in the Group's financial performance in the next reporting period.

Click here for Financial Highlights
Please read our General Disclaimer & Warning carefully.
Use of this Website constitutes acceptance of the Terms of Website Use.
Copyright © 2018. ListedCompany.com. All Rights Reserved.