JOINT CHAIRMAN
AND CEO MESSAGE
(CONT'D)
In February 2016, we completed
a 1-for-1 bonus issue of shares
with the objective of augmenting
ISOTeam’s issued share capital base,
better reflecting the growth and
expansion of our business as well
as improving trading liquidity of our
shares. It also served to increase
accessibility to the Group thereby
allowing for greater participation
by investors and to broaden our
shareholder base.
Also in February 2016, we were
awarded our first renewable energy
installation project by Sunseap Pte
Ltd, which saw us installing solar
panels at 33 blocks in Tampines. This
was followed in August 2016 by our
second project to install hydrogen
fuel cells operating power systems as
back-up generators for lifts at HDB
blocks in Punggol for HOPE Technik.
To wrap it all up, we want to share
the fruits of yet another good year
with our shareholders, so the Board
has proposed a final tax-exempt,
one-tier dividend of 0.75 Singapore
cents per ordinary share for FY2016
representing a dividend payout ratio
of 23.1% of net attributable profit.
Note that is post-completion of
our 1-for-1 bonus share issue and
dividend per share would have been
1.5 cents apiece if the bonus issue
was not taken into account.
Moving forward, the Group will
recommend and distribute at least
20% of the Company's consolidated
profit after tax and minority interests
as dividend
(2)
.
Spreading our Wings
ISOTeam’s vision is to become
“Singapore’s No. 1 and Preferred
Partner for Total Maintenance
Solutions”. While that remains our
goal today for the local market, the
Group is beginning to outgrow this
vision and it may be time for us to
seriously consider expanding it to
reflect our new overseas ambitions.
In April 2016, we announced
our first foray abroad through a
joint venture agreement with our
longstanding business partner and
substantial shareholder, Nippon
Paint (Singapore) Company Private
Limited (
“NPS”
), to set up ISOTeam
TMS (Myanmar) Limited (
“TMS
Myanmar”
). Through TMS Myanmar,
the Group became NPS’s preferred
contractor for painting services in
Myanmar, while NPS supplied the
paint for the projects we undertake.
Just four months later, TMS
Myanmar gained a small foot hold
in the market when it secured its
first painting project for the Yangon
City Development Committee Staff
Housing. Although the value of the
contract is only approximately $0.11
million, we see it as a small but
positive victory for the business.
This venture has also given us
more confidence to look beyond
Singapore to capitalise on the
infrastructure boom around
the region. In September 2016,
we entered into a shareholders
agreement with BT Industrial
Coating (M) Sdn. Bhd. (
“BT
Industrial”
), which is engaged in
the business of providing water
proofing and floor coating services
in Malaysia, to incorporate a joint
venture for the purpose of providing
interior design services to reputable
developers in Malaysia.
Elsewhere in the region, we remain
on the lookout for opportunities to
enter new markets such as Indonesia
to provide painting services.
Meanwhile, our digital portal,
ISOHomeCare, which offers
handyman services, recently launched
a mobile application that now makes
it more convenient than ever for
homeowners to book appointments
using their smart devices.
Future Plans
Locally, we plan to leverage our
expanded skillsets to raise our share
of the maintenance solutions market.
We will remain focused on our
core R&R and A&A business by
riding on government initiatives
and regulatory requirements by
increasing our market share in
these segments.
Since the end of 2015, we have
participated in four tenders
with respect to HDB’s Home
Improvement Programme
(
“HIP”
). Although we have yet to
successfully win a tender, we believe
that our persistence will soon pay
off. Considering that contractors
have to be invited to tender for such
projects, which are normally worth
$20 million to $40 million, it is a
positive sign to have been asked to
participate repeatedly.
We also plan to undertake more
Hawker Centres Upgrading projects.
We are currently upgrading one
hawker centre in Jurong East and
one in Ang Mo Kio and we are the
lowest tenderer for another two
more projects in Tiong Bahru and
Taman Jurong.
(2) Excluding non-recurring, one-off and exceptional items, in respect of any financial year to its shareholders, subject to compliance with the
provisions of the Companies Act, the Company's Constitution and subject to factors such as earnings, cash flow and capital needs.
18
ISOTEAM LTD.
ANNUAL REPORT 2016
