"Our focus will continue to be on growing the company, in the process, creating long term shareholder value."
On behalf of the Board, I am pleased to report the results for financial year ended 30 June 2010. I hope these results will give greater clarity regarding our performance for the year, and form the basis for our belief in the long term future of Tiong Woon.
Like many other businesses, the past several years have been challenging as we experience the impact of a reversal in the fortunes of the global economy after years of expansion. Thankfully, there are some encouraging signs of a turnaround and reports have indicated recovery in some markets around the world, although of late, there been some reports questioning the strength and sustainability of the recovery.
As a service provider supporting customers in the Oil & Gas, Petrochemicals, Power and Construction sectors in the region and globally, we are exposed to uncertainties in the international market. However, considering the circumstances, on the whole we have demonstrated a fairly satisfactory financial and operational performance in fiscal year 2010.
FINANCIAL HIGHLIGHTSWe recorded a net profit after tax and non-controlling interest of S$23.9 million and revenue of S$148.4 million for the full year ended 30 June 2010, compared to S$42.3 million and S$202.3 million in the preceding year. Earnings per share were 6.62 cents against 12.54 cents previously.
Our balance sheet was in good shape overall with total assets of S$419.7 million and net assets of S$229.5 million. Shareholders' equity was 30% or S$51.1 million higher than in FY2009, at S$224.5 million. Net asset value per share of 60.43 cents was 18% or 9.07 cents higher than at 30 June 2009. The total number of shares issued was approximately 371.6 million as at 30 June 2010. The Group's careful management of its working capital has resulted in higher cash and cash equivalents of S$38.3 million as at 30 June 2010, compared to S$16.8 million previously, up 128%.
Working capital, or net current assets, was S$66.8 million, up 77% or S$29.2 million over the previous year. Net cash flow from operating activities also went up to S$35.9 million.
At the close of business on 15 September 2010, Tiong Woon's share price was 41.0 cents, giving a market capitalisation of S$152.4 million.
DIVIDEND PAYOUTThe Board of Directors has proposed a final one-tier tax-exempt dividend of 0.4 cent per ordinary share, representing a dividend payout ratio of 6% based on FY2010 profits. The dividents of S$1.5 million will be payable to shareholders in November 2010.
SEGMENT PERFORMANCETiong Woon performed satisfactorily across our core businessees. While remaining grounded in the domestic market, activities in other major markets also continuedfairly resilienty, particularly in India and the Middle East. Singapore remained the largest contributor to total revenue. Contributions from India have gone up during the year while activities in Indonesia have slowed down to some extent.
The utilisation rate for our Heavy Lift and Haulage equipment stood at 68% and Marine fleet utilisation was 52%.
We managed to keep fairly decent margins during the year by continuing with our core operating strategy of keeping costs down, maintaining optimal crane utilisation and rental rates, as well as managing our capital structure carefully.
