CEI CONTRACT MANUFACTURING LIMITED (Company Registration No H) Full Year Financial Statement

Transcription

1 CEI CONTRACT MANUFACTURING LIMITED (Company Registration No H) Full Year Financial Statement The Board of Directors of CEI Contract Manufacturing Limited wishes to announce the unaudited results of the Group and of the Company for the Year Ended 31 December (a) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2009 GROUP /(-) $ 000 $ 000 % Revenue 75,800 89,537 (15.3) Cost of sales (57,875) (66,367) (12.8) Gross profit 17,925 23,170 (22.6) Other income (including interest income) (93.9) General and administrative costs (11,778) (14,384) (18.1) Selling and distribution costs (2,701) (2,733) (1.2) Profit from operations 3,459 6,266 (44.8) Finance costs (447) (293) 52.6 Share of results of associated company N/M Profit from operations before taxation 3,046 5,973 (49.0) Taxation (724) (1,355) (46.6) Profit after taxation 2,322 4,618 (49.7) Other comprehensive income: Foreign currency translation (34) - N/M Total comprehensive income for the year 2,288 4,618 (50.5) ================ Included in the above expenses are - Amortisation/ write off of intangible assets (676) (158) N/M Depreciation of fixed assets (1,989) (1,506) 32.1 Fair value changes of financial instruments 20 (182) N/M Foreign exchange loss (300) (1,596) (81.2) Impairment of investment in securities (320) (1,344) (76.2) N/M Not meaningful

2 1(b)(i) STATEMENT OF FINANCIAL POSITION GROUP COMPANY 31 Dec 31 Dec 31 Dec 31 Dec $ 000 $ 000 $ 000 $ 000 Fixed assets 11,000 11,056 1,284 1,703 Intangible assets 3,918 4,595 3,918 4,595 Investment in subsidiary companies ,276 10,663 Investment in associated companies Investment in securities 1,280 1,601 1,280 1,601 Deferred tax asset ,412 18,306 18,801 19,479 Current assets Inventories 12,280 16,239 12,262 16,163 Trade receivables 12,770 15,587 12,640 15,260 Other receivables Amounts due from subsidiary companies Cash and cash equivalents 14,885 11,003 13,458 10, ,793 43,514 39,286 42,566 Current liabilities Trade payables and accruals 10,545 15,281 10,044 15,248 Amounts due to subsidiary companies ,099 Provision for taxation 1,555 2,221 1,240 1,907 Bank borrowings 6,851 10,535 6,851 10,535 Other liabilities 2,408 1,445 2,334 1, ,359 29,482 20,727 30, Net current assets 19,434 14,032 18,559 12,406 Non-current liabilities Bank borrowings (6,633) (2,400) (6,633) (2,400) Deferred tax liabilities - (10) - - Net assets 30,213 29,928 30,727 29,485 ======== ======= ======= ======= Represented by: Share capital 23,816 23,815 23,816 23,815 Less : Treasury shares (837) (837) (837) (837) 22,979 22,978 22,979 22,978 Revenue reserves 7,187 6,868 7,667 6,425 Other reserves ,213 29,928 30,727 29,485 ======= ======= ====== =======

3 1(b)(ii) BORROWINGS Amount repayable in one year or less, or on demand As at 31 Dec 2009 As at 31 Dec 2008 Secured Unsecured Secured Unsecured - 6,851-10,535 Amount repayable after one year As at 31 Dec 2009 As at 31 Dec 2008 Secured Unsecured Secured Unsecured - 6,633-2,400 Details of any collateral Not applicable.

4 1(c) CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2009 GROUP FY2009 FY2008 $ 000 $ 000 Cash flows from operating activities: Profits from operations before taxation 3,046 5,973 Adjustments for: Amortisation of intangible assets Depreciation in fixed assets 1,989 1,506 Interest income (13) (72) Interest expense Loss on disposal of fixed assets 93 8 Impairment of an associated company - 16 Impairment of investment in securities (current) Impairment of investment in securities (non-current) 320 1,344 Fair value of investment securities - (164) Share of results of associated companies (34) - Operating income before investment in working capital 6,524 9,312 Decrease/ (increase) in receivables 2,645 (508) Decrease/ (increase) in inventories 3,959 (2,534) (Decrease)/ Increase in payables (3,943) 2 Cash generated from operations 9,185 6,272 Interest received Interest paid (447) (293) Income tax paid, net of refund (1,389) (1,569) Net cash provided by operating activities 7,362 4, Cash flows from investing activities: Purchase of fixed assets (2,025) (4,156) Redemption of investment securities (current) - 1,000 Acquisition of businesses/assets & subsidiary company, net of cash acquired - (969) Net cash used in investing activities (2,025) (4,125) Cash flows from financing activities: Dividends paid on ordinary shares (2,003) (4,391) Bank borrowings 548 5,997 Net proceed from issue of shares under option scheme Purchase of treasury shares - (502) Net cash (used in)/ provided by financing activities (1,455) 1, Net increase in cash and cash equivalents 3,882 1,697 Cash and cash equivalents at beginning of the year 11,003 9,306 Cash and cash equivalents at end of the year 14,885 11,003 ======= ========

5 1(d)(i) STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2009 Group Share capital Treasury shares Revenue reserves Other reserves Total equity $ 000 $ 000 $ 000 $ 000 $ 000 Balance at 1 January ,815 (837) 6, ,928 Total comprehensive income - - 2,322 (34) 2,288 for the period Dividends paid - - (2,003) - (2,003) Issuance of shares on exercise (1) - of employee share option Balance at 31 December ,816 (837) 7, ,213 ======================================================================= Balance at 1 January ,894 (335) 6, ,596 Total comprehensive income - - 4,618-4,618 for the period Issue of new shares 3, ,372 Issuance of shares on exercise (314) 235 of employee share option Purchase of treasury shares - (502) - - (502) Dividends paid - - (4,391) - (4,391) Balance at 31 December ,815 (837) 6, ,928 ====================================================================== Company Balance at 1 January ,815 (837) 6, ,485 Total comprehensive income - - 3,245-3,245 for the period Dividends paid - - (2,003) - (2,003) Issuance of shares on exercise (1) - of employee share option Balance at 31 December ,816 (837) 7, ,727 ======================================================================= Balance at 1 January ,894 (335) 5, ,085 Total comprehensive income - - 5,686-5,686 for the period Issue of new shares 3, ,372 Issuance of shares on exercise (314) 235 of employee share option Purchase of treasury shares - (502) - - (502) Dividends paid - - (4,391) - (4,391) Balance at 31 December ,815 (837) 6, ,485 ======================================================================

6 1(d)(ii) CHANGES IN COMPANY S SHARE CAPITAL No. of shares issued arising from exercise of options granted under CEI Employees Share Option Scheme ( CEI ESOS ) during the year : NIL 31 Dec Dec 2008 No. of unexercised options under CEI ESOS : 1,118,000 1,148,000 No. of treasury shares held : 4,943,000 4,943,000 No. of issued shares excluding treasury shares : 346,793, ,793,907 1(d)(iii) ISSUED SHARE CAPITAL There were 346,793,907 ordinary shares issued (excluding treasury shares) as at 31 December 2009 (31 December 2008: 346,793,907). 1(d)(iv) SALES, TRANSFERS, DISPOSAL, CANCELLATION AND/OR USE OF TREASURY SHARES There were no sales, transfers, disposal, cancellation and/or use of treasury shares in the current financial year. 2. AUDIT/REVIEW The figures have not been audited or reviewed. 3. AUDITORS REPORT Not applicable as figures have not been audited or reviewed. 4. ACCOUNTING POLICIES The Group adopted revised FRS1 Presentation of Financial Statements and FRS 108 Operating Segments which are effective on 1 January The adoption of these FRS did not result in any significant change to the Group s accounting policies as they are disclosure standards. Other than the above, the Group has applied the same accounting policies and methods of computation in the current period as compared with the audited financial statements as at 31 December CHANGES IN ACCOUNTING POLICIES AND THE EFFECT OF THE CHANGES Please refer to Note EARNINGS PER ORDINARY SHARE (EPS) GROUP FY2009 FY2008 Earnings per share based on profit attributable to shareholders: Based on existing issued share capital 0.66 cts 1.33 cts Based on fully diluted basis 0.66 cts 1.33 cts

7 7. NET ASSET VALUE Group Company FY2009 FY2008 FY2009 FY2008 Net asset value per share based on existing 7.58 cts 7.31 cts 7.72 cts 7.18 cts issued share capital as at the end of the year reported on (excluding treasury shares). 8. REVIEW OF GROUP PERFORMANCE The Group s Revenue for FY 2009 of $75.8 million was 15.3% lower than that of FY 2008 due to a decrease in customers demand as a result of the current global slowdown. The Gross Margin decreased from 25.9% in FY 2008 to 23.6% in FY As a result of the lower sales and decrease in Gross Margin, the Gross Profit reduced by $5.3 million from $23.2 million to $17.9 million in FY The Profit from Operations decreased by $2.8 million from $6.3 million to $3.5 million in FY 2009, a decrease of 44.8%. The effect of the lower Gross Profit was cushioned by a decrease in the General and Administrative costs. The General and Administrative costs reduced by $2.6 million, a decrease of 18.1%. The decrease was due to (i) a lower foreign exchange loss by $1.3 million, (ii) a lower impairment of Investment in Securities by $1.0 million, (iii) lower salaries costs by $0.6 million due to the Jobs Credit Scheme, and (iv) other cost control efforts. Other income was lower due to reduced fixed deposits interest rates and no dividend received for the Investment in Securities in FY Finance costs increased as a result of higher borrowings. The Group s Profit after taxation was about $2.3 million, a decrease of 49.7%. Earnings per share was 0.66 cents in FY 2009 as compared to 1.33 cents in FY 2008, based on a fully diluted basis. Net asset value of 7.58 cents as at 31 December 2009 was 3.7% higher than 7.31 cents as at 31 December The intangible assets relating to the acquisition of the equipment manufacturing business reduced by $0.7 million to $3.9 million in FY The market value of the investment in securities relating to Kinergy reduced by $0.3 million to $1.3 million in FY These impairment losses were expensed to the Statement of Comprehensive Income. Inventories decreased by $3.9 million from $16.2 million to $12.3 million in FY Trade Receivables decreased by $2.8 million from $15.6 million to $12.8 million, and Trade Payables and Accruals reduced by $4.8 million from $15.3 million to $10.5 million. These were mainly the result of lower revenue recorded in FY The Company had borrowings of $13.5 million as at 31 December 2009 (31 December 2008: $12.9 million). Cash and Cash Equivalents increased by $3.9 million from $11.0 million to $14.9 million in FY Other Liabilities increased by $1.0 million from $1.4 million to $2.4 million in FY The increase was due to deposits received from customers for purchase of materials and advanced billing for some engineering works.

8 9. VARIANCE FROM PROSPECT STATEMENT In the announcement of the Group s financial results for the half-year ended 30 June 2009, it was mentioned that the Directors expect that barring any unforeseen circumstances, the Group s Revenue for the second half of FY2009 will be similar to the first half, and the Group will remain profitable for FY2009. The Directors wish to announce that the Group reported Revenue of $37.8 million in the second half (first half: $38.0 million). The Group also reported a Net Profit of $2.3 million in FY PROSPECT As at 31 December 2009, the Group has orders on hand worth $27.6 million which is expected to be fulfilled within the current financial year. The Group serves customers from a diverse range of market segments. These include analytical instruments, medical equipment, semi-conductor equipment, oil and gas industries and displays for industrial applications. The Group is beginning to see some slow and steady improvement in business from most of its customers. Based on current business leads and the existing customers orders, the Directors expect that barring any unforeseen circumstances, the Group s Revenue for FY 2010 will be higher than FY 2009, and the Group to remain profitable in FY DIVIDENDS (a) Current Financial Period Reported On Name of Dividend Second & final Special dividend Dividend Type Cash Cash Dividend (cents) Tax Rate One-tier tax-exempt One-tier tax-exempt (b) Corresponding Period of the Immediate Preceding Financial Year Name of Dividend Second & final Special dividend Dividend Type Cash Cash Dividend (cents) Tax Rate One-tier tax exempt One-tier tax exempt

9 (c) Date payable Payment of the dividends, if approved by the members at the Annual General Meeting to be held on 15 April 2010, will be made on 4 May (d) Books closure date NOTICE IS HEREBY GIVEN THAT the Share Transfer Books and Register of Members of CEI Contract Manufacturing Ltd ("the Company") will be closed from 5.00 p.m. on 23 April 2010 to 5.00 p.m. on 26 April 2010 (both dates inclusive) for the preparation of dividend warrants for both the one-tier tax-exempt second & final dividend and one-tier tax-exempt special dividend. Duly completed registrable transfers received by the Company's Share Registrar, Boardroom Corporate & Advisory Services Pte Ltd, 50 Raffles Place, #32-01, Singapore Land Tower, Singapore up to 5.00 p.m. on 23 April 2010 will be registered to determine shareholders'entitlements to the said dividends. Members whose Securities Accounts with The Central Depository (Pte) Limited are credited with shares at 5.00 p.m. on 23 April 2010 will be entitled to the proposed one-tier tax-exempt second & final dividend and one-tier tax-exempt special dividend. 12. BUSINESS SEGMENTAL INFORMATION Asia Pacific USA Europe Consolidated $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 Segment turnover 8,977 14,988 52,155 57,691 14,668 16,858 75,800 89,537 Cost of sales (6,432) (11,089) (40,484)(42,902) (10,959)(12,376)(57,875)(66,367) Gross profit 2,545 3,899 11,671 14,789 3,709 4,482 17,925 23,170 Unallocated expenses (14,466)(16,904) Operating profit 3,459 6,266 Interest expense (447) (293) Share of results of associated company Profit before taxation 3,046 5,973 Tax expense (724) (1,355) Net profit for the year 2,322 4, FACTORS LEADING TO ANY MATERIAL CHANGES IN CONTRIBUTIONS TO TURNOVER AND EARNINGS BY THE BUSINESS OR GEOGRAPHICAL SEGMENTS There were no material changes in contributions to Turnover and Earnings by the business or geographical segments in the financial year under review.

10 14. BREAKDOWN OF SALES GROUP +/(-) % $ 000 $ 000 Turnover reported for : First half year 38,012 44,182 (14.0) Second half year 37,788 45,355 (16.7) Profit after taxation reported for : First half year 1,279 2,765 (53.7) Second half year 1,043 1,853 (43.7) 15. BREAKDOWN OF THE TOTAL ANNUAL DIVIDEND (IN DOLLAR VALUE) FOR THE LATEST FULL YEAR AND PREVIOUS FULL YEAR Total annual dividend (net of tax) Latest Full Year (S$ 000) Previous Full Year (S$ 000) Ordinary 1,651 2,761 Preference Total 1,651 2,761 ===== ==== 16. INTERESTED PERSON TRANSACTIONS Not applicable as the Company has no general mandate for interested person transactions. BY ORDER OF THE BOARD Teo Soon Hock Secretary Singapore, 9 February 2010