The Group registered a turnover of S$106.9 million for the financial year ended 30 June 2011 compared to S$148.4 million in the previous financial year.

The Group's turnover from Heavy Lift and Haulage segment for the financial year ended 30 June 2011 was S$85.6 million compared to S$105.4 million it registered in the previous financial year. This was mainly due to a decline in integrated projects undertaken by the Group and delay in the commencement of new projects. The Group also experienced a decrease in rental rates.

Turnover from Marine Transportation segment for the financial year ended 30 June 2011 was S$9.7 million relative to S$13.9 million previously, due to lower utilisation rates and fewer integrated haulage and marine projects undertaken by the Group.

Fabrication & Engineering segment registered a turnover of S$5.0 million for the financial year ended 30 June 2011, compared to S$17.6 million in the previous financial year. Turnover for the current financial year was mainly attributable to revenues from ship repair jobs and engineering projects while the higher turnover for the previous financial year was primarily from fabrication of the derrick pipe-lay barge.

Turnover from Trading segment for the financial year ended 30 June 2011 was S$6.7 million compared to S$11.5 million previously as the Group sold fewer equipment compared to the previous financial year.

The Group's gross profit for FY 2011 was S$25.3 million as compared to S$43.5 million in FY 2010, mainly due to the decrease in turnover from all business segments. Gross profit margin was 24% for FY 2011 compared with 29% of FY 2010 mainly due to decrease in rental rates.

Other income - net was S$3.5 million for FY 2011 relative to S$15.7 million in FY 2010, mainly due to a decrease in gain on disposal of property, plant and equipment of S$11.1 million, of which S$10.6 million was from the disposal of property at No. 13 Pandan Crescent.

Administrative expenses decreased by 28% from S$1.8 million in FY 2010 to S$1.3 million in FY 2011 due to lower professional fees and general administrative expenses.

Finance expenses decreased by 36% from S$2.3 million in FY 2010 to S$1.5 million in FY 2011 due to higher currency translation gains relating to borrowings offset by higher interest expenses of S$0.4 million.

The Group registered a profit before tax of S$1.3 million for the financial year ended 30 June 2011 compared to S$28.1 million recorded in the previous financial year.

The profit before tax from Heavy Lift and Haulage segment was S$5.0 million for the financial year ended 30 June 2011, compared to S$23.9 million in the previous financial year primarily due to the lower turnover.

Marine Transportation segment saw its loss reduced to S$0.2 million for the financial year ended 30 June 2011 from S$0.7 million in the previous financial year mainly due to higher currency translation gains relating to borrowings and lower costs incurred for its other operating expenses.

The Group narrowed its loss for Fabrication and Engineering segment for the financial year ended 30 June 2011 by 44%, from S$6.7 million to S$3.7 million compared to the previous financial year mainly due to lower costs incurred for general overheads and reduced staff costs due to decrease in activities.

Profit before tax from Trading segment for the financial year ended 30 June 2011 was S$0.2 million compared to S$1.1 million in the previous financial year. This was primarily driven by lower turnover and lower gross profit margins from sale of equipment.

The S$10.6 million gain arising from the disposal of No. 13 Pandan Crescent was separately disclosed in "Others" segment in the financial year ended 30 June 2010.

Financial assets at fair value increased by 16% from S$0.8 million to S$0.9 million as at 30 June 2011 due to the increase in market value of the marketable securities held.

Trade and other receivables decreased by 58% from S$118.9 million to S$49.5 million as at 30 June 2011 mainly due to full payment received for the derrick pipe-lay barge project.

Investment in associated companies of S$1.0 million relates to investment of 49% equity interest in two Malaysian companies by one of the Company's sub-subsidiary.

Property, plant and equipment increased by 11% from S$255.6 million to S$284.3 million as at 30 June 2011 mainly due to the Group's investment in new equipment for Heavy Lift and Haulage business.

Trade and other payables decreased by 22% from S$24.1 million to S$18.8 million as at 30 June 2011 in line with the lower cost of sales.

Total short term and long term borrowings decreased by 23% from S$138.0 million to S$106.6 million as at 30 June 2011 mainly due to the settlement of the revolving credits drawn for financing the derrick pipe-lay barge.

The sovereign debt crisis in Europe and the United States may slow down the global economic recovery. Against such a backdrop, business conditions for the Group continue to be challenging. The Group will streamline and strengthen its operations, keeping costs and expenses in line with its business. It will focus on its core business of Heavy Lift and Haulage and Fabrication & Engineering segments. It will continue to be active in its key markets such as Singapore, Thailand, China, Indonesia, Vietnam, India, Malaysia and the Middle East in the Power Generation, Oil & Gas and Petrochemical sectors.

Moving forward, the Group's business priorities will continue to be:

1)To actively pursue business opportunities in the emerging markets for the Group's core heavy lift and haulage segment;
2)To develop its fabrication and engineering competency for marine, oil & gas projects;
3)To invest in higher capacity and specialised equipment;
4)To forge strategic alliances and cooperation with international and industry players to jointly participate in the bidding for projects; and
5)To maintain active and tight management control of the Group's respective business activities.