Revenue
Both revenue and profitability of
the Group reached new highs in
FY2016, surpassing last year’s record
breaking performance. Revenue
increased by $12.5 million or 15.3%
to $94.1 million in FY2016 from
$81.7 million in FY2015. While the
R&R segment continued to be
the principal income generator
contributing 42.7% to the topline,
the Group’s results was driven
mainly by a leap in revenue
generated by its new business
segments, namely C&P and Others,
as well as strong double-digit
growth from its A&A segment.
R&R revenue shrank 26.1% yoy to
$40.3 million, from $54.5 million
in FY2015 from slower and lower
revenue recognition in FY2016.
Nevertheless, the segment continued
to be a leading player in the segment
with the completion of 16 public
sector projects from Pasir-Ris-Punggol
Town Council, SKK (S) Pte Ltd, HDB,
Tanjong Pagar Town Council and
Tampines Town Council contributing
to the Group’s FY2016 revenue.
A&A revenue rose 40.1% yoy to
$24.4 million in FY2016, from $17.4
million in FY2015. Projects from
this segment were mainly from
Town Council projects in Pasir Ris-
Punggol, Marine Parade, Tampines,
Choa Chu Kang and Bishan-
Toa Payoh, which are currently
ongoing, as well as commercial and
hospitality projects completed by
our new subsidiary, ISOTeam TMG.
FY2016’s biggest growth segment
was the Group’s C&P business. We
completed 13 projects resulting in
segmental revenue soaring 231%
to $11.8 million compared to $3.6
million in FY2015. Projects we
handled included those awarded by
Welltech Construction Pte Ltd, Sato
Kogyo (S) Pte Ltd, Singapore Piling &
Civil Engineering Pte Ltd, San Keong
Construction Pte Ltd and Soil-Build
(Pte) Ltd.
Revenue from Others segment,
our second biggest growth division
in FY2016, leapt 185.0% to $17.8
million, from $6.2 million in FY2015.
The revenue jump was due to
projects comprising ID works from
the Public Service Division and Woh
Hup Pte Ltd, waterproofing works
for Ang Mo Kio Town Council,
landscaping works from HDB and
rental income for leasing services.
R&R, A&A, C&P and Others
accounted for 42.7%, 25.9%, 12.5%
and 18.9% of the Group’s revenue in
FY2016 compared to 66.7%, 21.3%,
4.4% and 7.6% in FY2015.
Profitability
In FY2016, gross profit of the Group
rose 19.9% to $24.2 million in
FY2016 compared to $20.2 million
in FY2015, while overall gross profit
margin rose a percentage point
yoy to 25.7% due to better profit
margins from our R&R, A&A and
C&P segments.
R&R recorded a profit of $14.9
million with a corresponding gross
margin of approximately 37.1% in
FY2016, compared to $16.1 million
and 29.6% respectively in FY2015.
A&A achieved a gross profit of
$4.9 million yielding an improved
gross margin of 20.3% in FY2016
compared to $2.5 million and 14.3%
respectively in FY2015.
Gross profit from C&P quadrupled
to $2.5 million in FY2016 from $0.5
million a year ago and in tandem
with this, gross profit margin
improved to 21.2% in FY2016 from
13.7% in FY2015.
Others achieved record gross profit
of $1.8 million in FY2016 compared
$1.1 million in FY2015. However,
gross profit margin slipped to 10.0%
in FY2016 from 17.1% in FY2015.
Despite higher expenses from
ISOTeam’s active business
acquisitions and operations
expansion last year, we achieved
a record net profit attributable to
equity holders of the Company of
$9.2 million in FY2016, an 13.6%
yoy rise compared to $8.1 million in
FY2015. Overall, we recorded a net
attributable profit margin 9.8% in
FY2016 compared to 9.9% in FY2015.
Other Income
In FY2016, other income increased
by 103.4% yoy to $1.9 million, from
$1.0 million in FY2015, mainly due
to increases in gain on disposal
of property, plant and equipment,
interest income and other income
such as rebates from suppliers for
the bulk quantity purchase and sales
of scrap material amounting to $0.3
million each.
Expenses
Marketing and distribution expenses
of the Group increased by 68.9% yoy
to $1.8 million in FY2016 from $1.1
million in FY2015. This was in line
with additional fixed assets, mainly
motor vehicles, purchased which led
to increases in depreciation of motor
vehicles and their running expenses
such as diesel and petrol expenses,
as well as their repair and upkeep
expenses. In addition, the Group
incurred higher staff costs due to its
acquisition of a new subsidiary.
ID work for a residental home.
Architectural design works for the Aston Martin showroom.
33
ISOTEAM LTD.
ANNUAL REPORT 2016
