RNS Number:4772T
Acertec PLC
30 April 2008
30 April 2008
Acertec plc
The following announcement was made today by BRC Asia Limited a subsidiary of
Acertec plc. Acertec own 70.37% of BRC Asia Limited which is listed on the
Singapore Stock Exchange.
BRC Asia Limited
Unaudited First Quarter Financial Statement And Dividend Announcement For the
Period ended 31 March 2008
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3),
HALF-YEAR AND FULL YEAR RESULTS
1(a) Group Profit and Loss Account for the quarter ended 31 March
The Group
-----------
2008 2007 +/(-)
$'000 $'000 %
Sales 52,357 24,725 112
Cost of sales (48,126) (22,592) 113
-----------------------------
Gross profit 4,231 2,133 98
Other (loss) / gains (net) ( note (a) )
- Miscellaneous (750) - n.m
Expenses
- Distribution (563) (505) 11
- Administrative (1,043) (847) 23
- Finance (net) (301) (215) 40
- Other (235) (253) (7)
Share of profit / (loss) of joint venture, net of
tax 49 (89) n.m
-----------------------------
Profit before income tax ( note (b) ) 1,388 224 520
Income tax expense (241) (56) 330
-----------------------------
Net profit 1,147 168 583
-----------------------------
n.m. denotes not meaningful.
Note (a)
The Group
--------------
Other (loss) / gains (net) 2008 2007
$'000 $'000
(i) Fair value changes on FX contracts 750 -
------------------
Note (b)
The Group
--------------
Profit before tax is arrived at after charging / (crediting) 2008 2007
$'000 $'000
Interest expense on borrowings 301 215
Depreciation 406 509
Share option expense 62 67
Rental expense - operating lease 164 158
Provision for onerous contracts 500 -
1(b)(i) A balance sheet (for the issuer and group), together with a comparative
statement as at the end of the immediately preceding financial year
The Group The Company
------------- -------------
Mar 2008 Dec 2007 Mar 2008 Dec 2007
$'000 $'000 $'000 $'000
Current assets
Cash and cash equivalents 3,068 1,541 3,031 1,502
Trade and other receivables (1) 42,135 35,034 42,135 35,034
Inventories (2) 51,575 32,464 51,575 32,464
Other current assets (3) 1,884 576 1,839 529
-------------------- --------------------
98,662 69,615 98,580 69,529
-------------------- --------------------
Non-current assets
Investment in a subsidiary - - 3,670 3,670
Investment in joint venture 6,897 6,848 6,076 6,076
Available-for-sale financial
assets 39 39 39 39
Property, plant and equipment 12,506 12,797 12,506 12,797
-------------------- --------------------
19,442 19,684 22,291 22,582
-------------------- --------------------
Total assets 118,104 89,299 120,871 92,111
-------------------- --------------------
Current liabilities
Trade and other payables (4) 40,650 31,956 43,888 35,338
Current income tax liabilities 1,639 1,386 1,639 1,386
Borrowings (5) 33,746 15,197 33,746 15,197
-------------------- --------------------
76,035 48,539 79,273 51,921
-------------------- --------------------
Non-current liabilities
Borrowings 2,099 1,975 2,099 1,975
Provision for retirement
benefits 384 384 384 384
Deferred income tax liabilities 975 975 975 975
-------------------- --------------------
3,458 3,334 3,458 3,334
Total liabilities 79,493 51,873 82,731 55,255
-------------------- --------------------
Net assets 38,611 37,426 38,140 36,856
-------------------- --------------------
Share capital and reserves
Share capital 24,945 24,768 24,945 24,768
Capital reserve 597 597 597 597
Fair value reserve 19 19 19 19
Share option reserve 1,478 1,469 1,478 1,469
Foreign currency translation
reserve (512) (364) - -
Retained earnings 12,084 10,937 11,101 10,003
-------------------- --------------------
38,611 37,426 38,140 36,856
-------------------- --------------------
Comments on Group Balance Sheet
(1)Trade and other receivables increased by $7.1m mainly because of the higher
volume.
(2)The increase in inventory of $19.1m was to cover our order book.
(3) Payments of deposits to suppliers for purchases of steel was the main reason
for the increase in other receivables by $1.3m.
(4)Trade creditors increased by $8.7m as more purchases for steel were placed
with suppliers who offered credit terms.
(5)The higher level of working capital arising from the increased volume was the
main reason for the increase in bank borrowings.
1(b)(ii) Aggregate amount of group's borrowings and debt securities
Amount repayable in one year or less, or on demand
31 March 2008 31 Dec 2007
Secured $'000 Unsecured $'000 Secured $'000 Unsecured $'000
883 32,863 787 14,410
Amount repayable after one year
31 March 2008 31 Dec 2007
Secured $'000 Unsecured $'000 Secured $'000 Unsecured $'000
2,099 0 1,975 0
Details of any collateral
Borrowings of $1,862K is secured by a mortgage over the factory at 12 Tuas
Avenue 5, Singapore 639338 and the balance of $1,120K relates to hire purchase
financing of machinery.
1(c) A cash flow statement (for the group), together with a comparative
statement for the corresponding period of the immediately preceding financial
year.
1st Qtr 2008 1st Qtr 2007
$'000 $'000
Cash flows from operating activities
Total profit 1,147 168
Adjustments for :
Tax 241 56
Share of (profit) / loss of joint venture (49) 89
Depreciation of property, plant and equipment 406 509
Share option expenses 62 67
Interest expense 301 215
---------------------------
Operating cash flow before working capital
change 2,108 1,104
Change in operating assets and liabilities
Trade and other receivables (7,101) 1,050
Inventories (19,111) (3,717)
Other current assets (1,308) (2)
Trade and other payables 8,546 (6,087)
---------------------------
Cash generated from operations (16,866) (7,652)
Income tax refund (net) 12 81
---------------------------
Net cash used in operating activities (16,854) (7,571)
---------------------------
Cash flows from investing activities
Purchases of property, plant and equipment (115) (192)
---------------------------
Net cash used in investing activities (115) (192)
---------------------------
Cash flows from financing activities
Proceeds from bank loan -
Repayment of bank loan (133) (133)
Net proceeds from finance lease 354 817
Net proceeds from bills payable to banks 18,452 7,203
Interest paid (301) (215)
Proceeds from issue of shares 124 171
---------------------------
Cash provided by financing activities 18,496 7,843
---------------------------
Net increase in cash and cash equivalents 1,527 80
Cash and cash equivalents at the beginning of
the financial period 1,541 2,243
---------------------------
Cash and cash equivalents at the end of the
financial period 3,068 2,323
---------------------------
1(d)(i) A statement (for the issuer and group) showing either (i) all changes in
equity or (ii) changes in equity other than those arising from capitalisation
issues and distributions to shareholders, together with a comparative statement
for the corresponding period of the immediately preceding financial year.
Statement of changes in Equity - Group
Share Capital Fair value Share Foreign Retained Total
capital reserve reserve option currency earnings
reserve translation
reserve
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 2008 24,768 597 19 1,469 (364) 10,937 37,426
- Currency translation
differences - - - - (148) - (148)
-----------------------------------------------------------------------------------------------------------------------
Net losses recognized
directly in equity - - - - (148) - (148)
Net profit - - - - - 1,147 1,147
-----------------------------------------------------------------------------------------------------------------------
Total recognised
gains /(losses) - - - - (148) 1,147 999
Employee share option scheme
- Value of employee services - - - 62 - - 62
Issue of shares 177 - - (53) - - 124
-----------------------------------------------------------------------------------------------------------------------
Balance at 31 March 2008 24,945 597 19 1,478 (512) 12,084 38,611
-----------------------------------------------------------------------------------------------------------------------
Balance at 1 January 2007 22,885 597 593 1,620 (282) 9,085 34,498
-Fair value gains on
available-for-sale
financial assets - - 415 - - - 415
- Currency translation
differences - - - - (19) - (19)
-----------------------------------------------------------------------------------------------------------------------
Net gains / (losses)
recognized directly in
equity - - 415 - (19) - 396
Net profit - - - - - 168 168
-----------------------------------------------------------------------------------------------------------------------
Total recognised
gains /(losses) - - 415 - (19) 168 564
Employee share option scheme
- Value of employee services - - - 67 - - 120
Issue of shares 236 - - (65) - - 171
-----------------------------------------------------------------------------------------------------------------------
Balance at 31 March 2007 23,121 597 1,008 1,622 (301) 9,253 35,353
-----------------------------------------------------------------------------------------------------------------------
Statement of changes in Equity-Company
Share Capital Fair value Share option Retained Total
capital reserve reserve reserve earnings
$'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 2008 24,768 597 19 1,469 10,003 36,856
Net profit - - - - 1,098 1,098
-----------------------------------------------------------------------------------------------------------------------
Total recognised gains - - 1,098 1,098
Employee share option scheme
- value of employee services - - - 62 - 62
Issue of shares 177 - - (53) - 124
-----------------------------------------------------------------------------------------------------------------------
Balance at 31 March 2008 24,945 597 19 1,478 11,101 38,140
-----------------------------------------------------------------------------------------------------------------------
Balance at 1 January 2007 22,885 597 593 1,620 8,560 34,255
Fair value gains on
available-for- sale financial assets - - 415 - - 415
-----------------------------------------------------------------------------------------------------------------------
Net gains recognized directly in equity - - 415 - - 415
Net profit - - - - 257 257
-----------------------------------------------------------------------------------------------------------------------
Total recognised gains - - 415 - 257 672
Employee share option scheme
- value of employee services - - - 67 - 67
Issue of shares 236 - - (65) - 171
-----------------------------------------------------------------------------------------------------------------------
Balance at 31 March 2007 23,121 597 1,008 1,622 8,817 35,165
-----------------------------------------------------------------------------------------------------------------------
1(d)(ii) Details of any changes in the company's share capital arising from
rights issue, bonus issue, share buy-backs, exercise of share options or
warrants, conversion of other issues of equity securities, issue of shares for
cash or as consideration for acquisition or for any other purpose since the end
of the previous period reported on. State also the number of shares that may be
issued on conversion of all the outstanding convertibles as at the end of the
current financial period reported on and as at the end of the corresponding
period of the immediately preceding financial year.
The changes to the company's share capital were as follows:-
No of shares $
-------------- ---
Share capital as at 01/01/2008 618,760,000 24,767,810
Options exercised by employees pursuant
to BRC Share Option Scheme 2004 2,023,000 177,318
-------------- --------------
Balance as at 31/03/2008 620,783,000 24,945,128
-------------- --------------
The outstanding options as at 31/03/08 were:-
Options Exercise Period Exercise Price
16,615,000 23/08/2006 - 22/08/2009 $0.0657
14,555,000 01/10/2007 - 30/09/2010 $0.0612
20,056,000 21/08/2008 - 20/08/2011 $0.0720
12,940,000 07/09/2009 - 06/09/2012 $0.1710
2. Whether the figures have been audited, or reviewed and in accordance with
which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to
Review Financial Statements), or an equivalent standard.
The figures have not been audited or reviewed.
3. Where the figures have been audited or reviewed, the auditors' report
(including any qualifications or emphasis of matter).
N/A
4. Whether the same accounting policies and methods of computation as in the
issuer's most recently audited annual financial statements have been applied.
The Group has applied the same accounting policies and methods of computation in
the financial statements for the current financial year as compared with the
most recently audited annual financial statement for the financial year ended 31
December 2007.
5. If there are any changes in the accounting policies and methods of
computation, including any required by an accounting standard, what has changed,
as well as the reasons for, and the effect of, the change.
N/A
6. Earnings per ordinary share of the group for the current period reported on
and the corresponding period of the immediately preceding financial year, after
deducting any provision for preference dividends.
The Group
Earnings per ordinary share (cents) 31 Mar 2008 31 Mar 2007
- Basic 0.185 0.028
- Diluted basis 0.174 0.026
7. Net asset value (for the issuer and group) per ordinary share based on issued
share capital of the issuer at the end of the (a) current period reported on and
(b) immediately preceding financial year
The Group
Net asset value per ordinary share (cents) 31 March 31 Dec
2008 2007
- Basic 6.22 6.05
The Company
Net asset value per ordinary share (cents) 31 March 31 Dec
2008 2007
- Basic 6.14 5.96
8. A review of the performance of the group, to the extent necessary for a
reasonable understanding of the group's business. The review must discuss any
significant factors that affected the turnover, costs, and earnings of the group
for the current financial period reported on, including (where applicable)
seasonal or cyclical factors. It must also discuss any material factors that
affected the cash flow, working capital, assets or liabilities of the group
during the current financial period reported on.
We are now benefiting from the high level of contracts awarded in 2007,
estimated by the BCA to be in the region of $24.5 billion. This was the main
reason for our turnover doubling to $52.4m in the first quarter (note that there
is generally a lag period of a year or more between award and output). It should
also be noted that our average selling price had also increased by 14%, relecting
the increase in the price of steel, and that our turnover in the first quarter
of 2007 was depressed by the sand and granite issue.
Gross margin as a percentage of sales in 1st quarter 2008 took a slight dip
because a provision amounting to $0.5m was made for onerous contracts.
The Company's policy has been to hedge all foreign exchange exposures, and, as
required by FRS39, all foreign exchange gains/losses arising from changes in
fair values of the forward exchange contracts are recognized in the income
statement when the changes arise. As a consequence, open contracts were marked
to market at 31 March 2008, giving rise to an unrealized exchange loss of
$0.75m.
Expenses were tightly controlled. Interest expense on bank borrowings increased
by $0.09m because of the higher level of bank borrowings, which was needed to
cater for the higher working capital arising from the higher volume.
All in all, we are pleased to announce a substantial growth in net profit to
$1.1m for the first quarter.
9. Where a forecast, or a prospect statement, has been previously disclosed to
shareholders, any variance between it and the actual results.
No forecast or prospect statement has been made or disclosed to shareholders.
10. A commentary at the date of the announcement of the competitive conditions
of the industry in which the group operates and any known factors or events that
may affect the group in the next reporting period and the next 12 months.
The strong construction industry in Singapore will continue to be the key
drivers of growth for the Group in 2008. The Group has every prospect of
benefitting from the high quantum of contracts awarded in 2007 and the future
pipeline of new projects announced, particularly in public sector.
Steel prices have increased by some 30% since the beginning of 2008 and will
continue to be volatile. We will continue with our policy of hedging our order
book against steel price fluctuations.
11. Dividend
(a) Current Financial Period Reported On
Nil
(b) Corresponding Period of the Immediately Preceding Financial Year
Nil
(c) Date payable
N/A
(d) Books closure date
N/A
12. If no dividend has been declared/recommended, a statement to
that effect
N/A
13. Confirmation pursuant to Rule 705(4) of the SGX Listing Manual
We, Lim Siak Meng and Wong Soong Kit, being two directors of BRC Asia Limited,
do hereby confirm on behalf the Board of Directors of the Company that, to the
best of our knowledge, nothing has come to the attention of the Board of
Directors of the Company which may render the unaudited financial results for
the quarter ended 31 March 2008 to be false or misleading in any material
aspects.
On behalf of the Board of Directors
Lim Siak Meng Wong Soong Kit
Executive Director Executive Director
BY ORDER OF THE BOARD
John David Sword
Chairman
30 April 2008
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCIMMITMMAJBBP
Acertec (LSE:ACER)
Historical Stock Chart
From Apr 2024 to May 2024
Acertec (LSE:ACER)
Historical Stock Chart
From May 2023 to May 2024
