13
Annual Report 2015
TEHO INTERNATIONAL INC LTD.
OPERATIONS &
BUSINESS REVIEW
GROUP PERFORMANCE
REVENUE
The Group’s revenue for the financial year
ended 30 June 2015 (“FY2015”) of $61.7million
was an increase of $1.3 million or 2.1%, from
$60.4 million for the financial year ended 30
June 2014 (“FY2014”). Revenue contribution
from the Marine, Offshore Oil & Gas segment
remained stable at $55.6 million in FY2015
compared to $55.3 million in FY2014.
Revenue contribution from the Property
Development segment increased by $0.9
million or 18.6%, from $5.1 million in FY2014
to $6.0 million in FY2015.
• TIEC Holdings Pte. Ltd. (“TIEC”)
contributed revenue of $2.3 million arising
from the substantial completion of the
Urban Heritage development project.
• ECG Property Services Pte. Ltd. (“ECG”)
contributed the remaining revenue of
$3.7 million during the 7-month period
following the Group’s acquisition of ECG in
November 2014.
In accordance with revenue recognition
principles in the financial reporting standards,
the Property Development segment has not
recorded revenue arising from “The Bay”
project in FY2015.
Revenue from Singapore remained the highest
geographical segment, contributing 69.0% of
the Group’s revenue in FY2015, compared
to 77.1% of the Group’s revenue in FY2014.
The decrease in revenue from Singapore is
mainly due to decline in revenue from the
offshore oil & gas industry resulting from the
drop in crude oil prices.
GROSS PROFIT
The overall gross profit in FY2015 increased
slightly by $0.6 million or 3.5% to $18.7 million
in FY2015 from $18.0 million in FY2014.
The Group’s gross profit margin remained
stable at 30.3% in FY2015 compared to
29.9% in FY2014.
• The Marine, Offshore Oil & Gas segment
contributed gross profit of $17.5 million
to the Group in FY2015 as compared to
$17.7 million in FY2014. The gross profit
margin in FY2015 was 31.4%, slightly
lower than the gross profit margin of 32.0%
in FY2014.
• The Property Development segment
contributed gross profit of $1.2 million
to the Group in FY2015 as compared to
$0.5 million in FY2014, representing a
gross profit margin of 19.7% and 10.6%
respectively.
OTHER INCOME
Other income increased by $0.7 million
from $0.1 million in FY2014 to $0.8 million
in FY2015. The increase is mainly due to
the following:
• The Group recorded other income of
$0.2 million arising from fair value changes
in contingent consideration relating to an
earlier acquisition of a subsidiary in the
Marine, Offshore Oil & Gas segment.
• The Marine, Offshore Oil & Gas segment
derived income from project charges
and commission income amounting to
$0.3 million.
• In addition, the Marine, Offshore Oil &
Gas segment recorded increased sundry
income of $0.2 million.
OTHER ITEMS OF EXPENSE
Distribution costs increased by $1.5 million
or 105.7% in FY2015 to $2.9 million from
$1.4 million in FY2014. The increase is mainly
due to the following:
• The Marine, Offshore Oil & Gas segment
incurred an increase of $0.3 million in
distribution costs as a result of an increase
in participation in trade exhibitions and an
increase in advertisement costs.
• The Property Development Segment
incurred distribution costs of $1.1 million
in FY2015. This comprises marketing,
advertisement expenses and travelling
expenses relating to overseas business
expansion activities. These marketing
and promotional activities relate to the
development of “The Bay” project in
Cambodia, and are essential and important
to ensure success of the project.
