17
TEHO INTERNATIONAL INC LTD.
Annual Report 2016
OPERATIONS
& BUSINESS REVIEW
• Cash inflows arising from a decrease in
development properties of $2.1 million
• Cash inflows arising from a decrease
in trade and other receivables of
$0.8 million
• Cash inflows arising from an increase
in trade and other payables of
$2.8 million
After deducting income taxes paid of
$0.5 million, net cash generated from
operating activities in FY2016 was
$4.0 million.
Cash flows from investing activities
Net cash from investing activities in FY2016
was $10.5 million, comprising the following:
• Cash used for the purchase of property,
plant and equipment amounting to $2.0
million.
• Proceeds from disposal of plant and
equipment amounting to $14.6 million.
• Payment of contingent consideration
amounting to $0.1 million.
• Payment of deferred consideration
amounting to $2.0 million in relation to
the acquisition of ECG.
Current liabilities
Current liabilities decreased by $10.7 million
or 24.4% to $32.0 million as at 30 June 2016
from $42.7 million as at 30 June 2015. The
decrease is due to the following:
• Current portion of loans and borrowings
decreased by $11.6 million. The current
portion of the loans and borrowings
redeemed following the disposal of the
Group’s leasehold property at 47 Tuas
Avenue 9 amounted to $1.7 million.
The repayment of other loans and
borrowings reduced the current portion
of loans and borrowings by a further
$15.2 million. In addition, current portion
of loans and borrowings of $0.7 million
was reclassified as non-current. These
decreases were offset by a drawdown
of short-term loans amounting to
$6.0 million.
The decrease is offset by the following:
• Current tax liabilities increased by $0.4
million. The current tax liabilities mainly
relate to companies in the Marine &
Offshore segment. Even though the
segment showed a loss before tax, the
companies in the segment remained
profitable. The segment’s loss was due to
the impairment charges to goodwill that
negatively affected the segment’s results
at the Group reporting level, and not at
the individual company level.
• Trade and other payables increased
marginally by $0.4 million.
Shareholders’ equity
Shareholders’ equity decreased by $21.7
million or 25.9% to $62.1 million as at 30
June 2016 from $83.8 million as at 30 June
2015. The decrease is due to the following
(the amounts below do not add up due to
rounding):
• Total comprehensive loss for FY2016
amounting to $23.8 million.
• Foreign currency translation gain of
$0.1 million.
• Deferred tax income credited directly to
equity amounting to $2.1 million.
• Acquisition of non-controlling interests
without a change in control arising
from the acquisition of the remaining
shareholdings in ECG (Cambodia) Co., Ltd
by the Group, resulting in a decrease of
$0.1 million.
Cash Flows Review
Cash flows from operating activities
Operating cash outflows before changes
in working capital was $2.7 million in
FY2016. Net cash inflow from working
capital was $7.2 million due to the following
(the amounts below do not add up due to
rounding):
• Cash inflows arising from a decrease in
inventories of $1.4 million
Cash flows from financing activities
Net cash used in financing activities in
FY2016 was $20.5 million, comprising the
following:
• Cash used in the acquisition of remaining
45% shareholding in ECG (Cambodia) Co.,
Ltd. amounting to $0.1 million.
• Interest paid of $1.6 million.
• Repayment
of
bank
borrowings
and finance lease liabilities totalling
$39.7 million.
• Proceeds
from
bank
borrowings
amounting to $20.9 million.
As a result of the above, cash and cash
equivalents decreased by $6.0million during
FY2016. Cash and cash equivalents as at
30 June 2016 was $7.8 million.
