UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS PERIOD ENDED 31 DECEMBER 2023
Financials Archive
CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONDENSED INTERIM STATEMENTS OF FINANCIAL POSITION
Review of Performance of the Group
(a) Others included revenue from home retrofitting business, landscaping works, interior design, leasing, mechanical &
electrical engineering works, vector control services and handyman services.
Condensed Interim Consolidated Statement of Comprehensive income
Revenue
6MFY2024 vs 6MFY2023
Group revenue increased by $8.8 million or 16.5% from $53.9 million in 6MFY2023 to $62.7 million in 6MFY2024. The
increase was mainly due to increase in revenue contributed by all business segments partially offset by the decrease in
A&A and Others segments.
Gross profit and gross profit margin
6MFY2024 vs 6MFY2023
The Group's gross profit increased by $3.3 million or 67.0% from $5.0 million in 6MFY2023 to $8.3 million in 6MFY2024
mainly due to improved margins.
Other income
6MFY2024 vs 6MFY2023
The Group's other income decreased by $2.7 million from $3.3 million in 6MFY2023 to $0.6 million in 6MFY2024. The
higher income in 6MFY2023 was mainly due to one-off gain on disposal of subsidiaries
Marketing and distribution expenses
6MFY2024 vs 6MFY2023
The Group's marketing and distribution expenses decreased by $0.07 million or 16.4% from $0.42 million in 6MFY2023
to $0.35 million in 6MFY2024. The decrease was mainly due to reduction in staff cost as a result of disposal of
subsidiaries.
General and administrative expenses
6MFY2024 vs 6MFY2023
There were no material changes in the Group's general and administrative expenses in 6MFY2024.
Finance costs
6MFY2024 vs 6MFY2023
The Group's finance costs increased by $0.2 million or 19.8% from $1.0 million in 6MFY2023 to $1.2 million in 6MFY2024.
This was mainly due to the utilisation of trade facilities.
Other operating expenses
6MFY2024 vs 6MFY2023
The Group's other operating expenses increased by $0.2 million or 145.5% from $0.1 million in 6MFY2023 to $0.3 million
in 6MFY2024. The increase was mainly due to share-based payment compensation under the ISOTeam PSP 2013 in
6MFY2024.
Profit before tax
6MFY2024 vs 6MFY2023
As a result of the above, the Group recorded a profit before tax of $1.3million in 6MFY2024 as compared to $0.6 million
in 6MFY2023.
Tax credit and Profit after tax
6MFY2024 vs 6MFY2023
The Group's tax credit decreased by 96.1% mainly due to decrease in deferred tax income. Accordingly, the Group
recorded a profit after tax of $1.3 million in 6MFY2024 as compared to $0.8 million in 6MFY2023.
Condensed Interim Statements of Financial Position
Non-current assets
The Group's non-current assets decreased by $1.5 million or 5.2% from $28.0 million as at 30 June 2023 to $26.5 million
as at 31 December 2023, mainly due to decrease in property, plant and equipment, intangible assets and deferred tax
assets.
Current assets
Current assets increased by $13.2 million or 18.1% from $73.0 million as at 30 June 2023 to $86.2 million as at 31
December 2023 mainly due to increase in trade and other receivables and cash and bank balances partially offset by
the decrease in contract assets.
Non-current liabilities
The decrease in non-current liabilities of $2.5 million or 15.0% from $16.9 million as at 30 June 2023 to $14.4 million as
at 31 December 2023 was mainly due to repayment of loans and borrowings and lease liabilities.
Current liabilities
The increase in current liabilities of $2.6 million or 4.4% from $58.4 million as at 30 June 2023 to $61.0 million as at 31
December 2023 was mainly due to increase in trade and other payables and contract liabilities partially offset by the
repayment of loans and borrowings.
Condensed Interim Consolidated Statement of Cash Flows
Net cash generated from operating activities
6MFY2024
Net cash generated from operating activities amounted to $1.3 million in 6MFY2024 was mainly due to decrease in
contract assets and contract liabilities and increase of trade and other payables which were partially offset by the
increase in trade and other receivables. Main bulk of the trade and other receivables that was due has been collected
as at the date of this announcement.
Net cash used in from investing activities
6MFY2024
Net cash used in investing activities amounted to $0.2 million in 6MFY2024 was mainly due to purchases of property,
plant and equipment such as motor vehicles and machineries.
Net cash generated from financing activities
6MFY2024
Net cash generated from financing activities of $4.3 million in 6MFY2024 was mainly due to drawdown of bank
borrowings and proceeds from issue of share capital by way of rights issue which were partially offset by repayment of
bank borrowings, interest paid and repayment of lease liabilities.
Commentary
The Building and Construction Authority ("BCA") projects the total construction demand in 2024 to range between
S$32.0 billion and S$38.0 billion with the public sector contributing 55.0% of total demand. Over the medium term,
BCA projects a steady improvement in construction demand of between S$31.0 billion and S$38.0 billion from 2025 to
2028 with the public sector contributing between S$19.0 billion and S$23.0 billion over the forecast period. #
Besides public housing developments, public sector construction demand from 2024 to 2028 will be supported by
various major developments, such as MRT projects, infrastructure works for the future Changi Airport Terminal 5 (T5),
Tuas Port developments, hospital and educational institution projects as well as integrated development spanning
across various precincts including Siglap South and Toa Payoh.#
In light of the above, the Group remains cautiously optimistic of the market conditions in the construction sector.
Nevertheless, due to rising manpower and material costs, the Group continues to prioritise cash conservation and cost
control to manage the high cost environment. The current interest rate environment is also expected to impact the
Group's cost of borrowing.
As at 31 December 2023, the order book of the Group stands at $182.4 million, which should support the Group's
activities to FY2026. The Group will selectively tender for public and private sector projects, taking into consideration
the prevailing market conditions.
# BCA media release "Steady Demand for the Construction Sector Projected for 2024" dated 15 January 2024