Revenue increased by $4.9 million or 9.0% to $59.3 million for FY2020 from $54.4 million for FY2019. Revenue of the Marine & Offshore Segment increased by 8.8% or $4.7 million in FY2020 as compared to FY2019. The increase was mainly attributable to the contribution from the Rigging and Mooring business.

The Group’s gross profit increased by 17.7% or $3.3 million to $22.1 million in FY2020 from $18.8 million in FY2019. The Group’s gross profit margin also increased to 37.3% in FY2020 as compared to 34.5% in FY2019. The improvement is mainly contributed by the Marine & Offshore Segment with $21.2 million of gross profit in FY2020 as compared to $18.0 million in FY2019, with the gross profit margin increased to 36.3% in FY2020 from 33.6% in FY2019. The Property Development Segment contributed gross profit of $0.9 million, primarily arising from the Property Consultancy business. 

The Group’s profit before tax is $2.0 million in FY2020 as compared to a loss before tax of $0.3 million in FY2019. After accounting for income tax of $0.8 million, the Group’s profit for FY2020 is $1.2 million as compared to a loss of $0.5 million in FY2019.

The Group has turned around with a profit in FY2020 after a few years of losses. Revenue has also improved over FY2019. However, with the Covid-19 pandemic and the US-China tension ravaging the world, the road ahead remains challenging. The Group has embarked on a three-pronged strategy to mitigate the situation:- manage costs, improve liquidity and strengthen global capability. We have adopted several measures across entities to reduce or control our costs. We have secured additional banking facilities with our existing banks under Enterprise Financing Scheme to improve liquidity. We have also granted an option to purchase to dispose two of our leasehold properties (the “Proposed Disposal”). The Proposed Disposal will enable the Group to realise the value of the properties and result in a positive cash inflow of $800,000 (post-deductions for the payment of mortgage loan and the commission fee to the property agent in connection with the Proposed Disposal), further improving our liquidity. We will continue to strengthen our global capability by expanding our facilities in our overseas subsidiaries of our Rigging and Mooring business. We believe that we can better fulfil the needs of our customers with the added capacities.

I am extremely pleased that the Group has managed to turnaround our business despite the turbulent period. We have shown resilience in our core business, momentum with our global expansion and I hope that we can continue to navigate through this unprecedented crisis successfully.

I would like to take this opportunity to thank my fellow Board of Directors for the guidance and counsel throughout the year. On behalf of the Board and Management, I would like to sincerely thank our business partners, customers, bankers and most importantly, our employees, for their unwavering efforts and contributions to the Group. Last but not least, I would like to express my deep appreciation for our shareholders’ trust and loyal support in the Company, throughout the last few difficult years.