Page 5 - ar2012

Dear Shareholders,
On behalf of the Board of Directors, I am pleased to
present to you the Group annual report for the fnancial
year ended 30 June 2012 (“FY2012”).
FY2012 has been a challenging year. There were
uncertainties surrounding the European Union brought
about by its debt crisis which in turn has and will continue
to cast a pall over the world’s economy. The United States’
economy has continued to exhibit weak growth and
new emerging economies including China appear to be
slowing down. Within the marine supply chain, there was
a slow-down for new builds like containerships and dry
bulk carriers as a result of the low freight and chartering
rates. The Baltic Dry Index fell to an all-time low of 664
points in February 2011. On the other hand, demand
in the offshore oil & gas market remained promising
as relatively high oil prices has continued to attract the
oil majors’ capital expenditures in the exploration &
production activities.
Financial Review
Despite the changing and challenging global landscape in
FY2012, I am pleased to report that the Group managed
Chairman’s Statement
to record improvement in its top-line and bottom-line. The
Group’s revenue improved 11.8% year-on-year (“y-o-y”) to
S$37.4 million in FY2012, driven by broad-based growth
in both business segments, Marine and Offshore Oil &
Gas. Although operating expenses increased in FY2012
due to the increased headcount and one-off costs related
to the acquisition of TEHO Engineering Pte Ltd (“TEHO
Engineering”), (formerly known as Finessco Systems Pte
Ltd), the Group reported modest growth of 1.6% y-o-y in
net proft attributable to shareholders to S$2.2 million in
FY2012.
New Subsidiaries
During the fnancial year, the Group made a strategic
acquisition by acquiring 100% of TEHO Engineering, to
enhance its presence in the offshore oil & gas market and
to better manage its business cycle. TEHO Engineering
specializes in supplying, servicing and trading of electric
heating and associated control systems and accessories,
marine and offshore oil and gas fre/shut off dampers,
storm louvers and galley hoods, and, marine water heaters
in the South East Asian region. Apart from expanding the
Group’s products and services offering, the acquisition
“Our track record and reputation as a
reliable and responsive supplier of good
quality products and services was built
over a period of 25 years.”
TEHO INTERNATIONAL INC LTD Annual Report 2012 3