Financial Statements And Related Announcement - Half Yearly Results 2025

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• CONDENSED INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS
  

  Notes:
  (1) HY2024: 6 months ended 31 December 2023
  (2) HY2025: 6 months ended 31 December 2024

• CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
  

  Notes:
  n.m.: not meaningful

• CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
  
• FINANCIAL PERFORMANCE REVIEW

  Revenue

  Revenue increased by S$3.9 million or 14.0% to S$32.1 million for the financial period from 1 July 2024 to 31 December 2024 (“HY2025”) from S$28.2 million for the financial period from 1 July 2023 to 31 December 2023 (“HY2024”).

  • Marine & Offshore Segment revenue increased by S$4.0 million or 14.6% in HY2025 as compared to HY2024. This was mainly due to the increase in revenue contribution from the mooring and rigging business.
  • Revenue contribution from Property Segment decreased by S$0.1 million or 19.9% in HY2025 as compared to HY2024. Property Segment recorded contract revenue in HY2024, whereas the absence of contract revenue in HY2025 resulted in a decline in revenue.

  Gross profit

  The Group’s gross profit of S$11.9 million in HY2025 increased by S$1.3 million or 12.1% compared to HY2024. The Group’s gross profit margin slightly decreased to 37.1% in HY2025 from 37.7% in HY2024.

  • Marine & Offshore Segment contributed gross profit of S$11.5 million to the Group in HY2025 as compared to S$10.2 million in HY2024, with the decreased in gross profit margin to 36.3% in HY2025 from 37.1% in HY2024.
  • Property Segment contributed gross profit of S$0.4 million to the Group in HY2025, solely derived from the Group’s property consultancy business.

  Other operating income

  Other operating income decreased by S$425,000 to S$165,000 in HY2025 from S$590,000 in HY2024. The decrease was mainly due to the (i) absence of gain on disposal of asset held for sale in HY2025 and (ii) foreign exchange loss incurred in HY2025.

  Distribution expenses

  Distribution expenses decreased by S$32,000 or 4.1% to S$757,000 in HY2025 from S$789,000 in HY2024 due to lower freight costs as a result of easing in supply chain disruptions

  Administrative expenses

  Administrative expenses decreased by S$253,000 or 3.6% in HY2025, due to lower key management personnel cost.

  Other operating expenses

  Other operating expenses increased by S$200,000 or 8.7% in HY2025 due to the increase of foreign exchange loss.

  Finance income

  Finance income decreased by S$7,000 in HY2025, comprising mainly interest income from bank deposits, remained insignificant for HY2025.

  Finance costs

  Finance costs decreased by S$90,000 or 13.8% to S$562,000 in HY2025 from S$652,000 in HY2024, due to lower interest on bank loans in HY2025 compared to HY2024.

  Income tax expense

  The Group incurred an income tax expense of S$0.3 million in both HY2025 and HY2024. The lower effective tax rate in HY2025 compared to HY2024 was due to absences of additional provision of deferred tax liabilities for prior year.

  Profit for the period

  After combining the profit before tax of S$1.6 million from the Marine & Offshore Segment, loss before tax of S$0.1 million from the Property Segment and unallocated head office expenses of S$0.1 million, the Group’s profit before tax was S$1.4 million in HY2025 as compared to a profit before tax of S$0.4 million in HY2024. After accounting for income tax expense of S$0.3 million in HY2025, the Group’s net profit after tax for HY2025 amounted to S$1.1 million as compared to a net profit after tax of S$0.1 million in HY2024.

• FINANCIAL POSITION REVIEW

  Non-current assets

  Non-current assets increased by S$2.2 million to S$17.3 million as at 31 December 2024 from S$15.1 million as at 30 June 2024. The increase of S$2.2 million was mainly due to the acquisition of plant and equipment of S$3.5 million, partially offset by (i) depreciation of property, plant and equipment of S$1.0 million; and (ii) the effect of movements in exchange rates for property, plant and equipment of foreign subsidiaries of S$0.2 million.

  Current assets

  Current assets increased by S$0.3 million from S$40.3 million as at 30 June 2024 to S$40.6 million as at 31 December 2024. The increase was mainly due to the following:

  • Inventory increased by S$0.2 million from S$23.4 million as at 30 June 2024 to S$23.6 million as at 31 December 2024. This increase was attributed to proactive measures taken in anticipation of extended lead times for the supply of inventory within the Marine & Offshore Segment; and
  • Cash and cash equivalents increased by S$0.7 million from S$6.6 million as at 30 June 2024 to S$7.3 million as at 31 December 2024. Please refer to the “Cash Flow Review” section below for details.

  The increase in current assets stated above was partially offset by decrease in trade and other receivables by S$0.6 million.

  Non-current liabilities

  Non-current liabilities increased by S$1.2 million to S$8.7 million as at 31 December 2024 from S$7.5 million as at 30 June 2024. The increase was attributed to the proceeds from a loan taken to fund the acquisition of warehousing facility in the Republic of Korea by TEHO Ropes Korea Co., Ltd., a wholly-owned subsidiary of the Company.

  Current liabilities

  Current liabilities increased by S$0.9 million to S$25.2 million as at 31 December 2024 from S$24.3 million as at 30 June 2024. The increase was attributed to the proceeds from a loan taken to fund the acquisition of warehousing facility in the Republic of Korea, the increase in current tax liabilities, the increase in trade and other payables, partially offset by the decrease in contract liabilities and the decrease in deferred grant income.

  Equity

  As a result of the above, total equity of the Group increased by S$0.5 million to S$24.1 million as at 31 December 2024 from S$23.6 million as at 30 June 2024.

• CASH FLOWS REVIEW

  The Group’s net cash flows generated from operating activities was S$2.4 million in HY2025 compared to net cash generated from operating activities of S$0.9 million in HY2024. The increase was mainly due to higher profit before tax, along with lower inventory levels in the Marine & Offshore Segment’s business and decreases in trade and other receivables.

  Net cash flows used in investing activities amounted to S$1.6 million in HY2025, mainly due to the capital expenditure on the acquisition of property, plant and equipment of S$1.6 million.

  Net cash flows used in financing activities amounted to S$0.3 million in HY2025 was mainly due to dividend payment of S$0.2 million, interest payment of S$0.6 million, repayment of loans and borrowings of S$7.8 million, and payment of lease liabilities of S$0.5 million. This was partially offset by the proceeds from the drawdowns of bank loans and borrowings of S$8.8 million.

  As at 31 December 2024, the Group had cash and cash equivalents of S$7.3 million as compared to S$7.0 million as at 31 December 2023.

• COMMENTARY

  Amid recent developments in global trade, including the imposition of significant tariffs by the United States on imports, along with potential retaliatory measures from affected countries, the Group maintains a cautious outlook for the next twelve months. These actions have heightened concerns about potential disruptions to global trade and supply chains, as well as rising costs for businesses and consumers. As a result, the Group continues to focus on managing its operating expenses to ensure the sustainability of its businesses.