Financials
Full Year Financial Statement for the Year Ended 31/12/2007
Profit and Loss
Click here for the Half Year 2007 Financials
Review of Performance
Revenue and Profit & LossFor the financial year ended 31 Dec 2007 ("FY2007"), the Group's revenue was $87.3 million, an increase of 263.0% as compare to $24.0 million in the previous financial year ("FY2006").
The significant increase in revenue was mainly due to the following reasons:
- Enhanced contributions in established markets such as China and Asia;
- Significant contributions from new markets such as Middle-East, US and Europe;
- Contributions from several material contracts secured during the year;
- Full year contributions from Control & Applications Asia Pte Ltd and contributions from newly acquired subsidiary, Guided Wave Inc.
For the details on the contributions from the respective markets, please refer to Note 13 below.
For FY2007, the Group's gross profit has achieved approximately $23.3 million at a gross margin of 26.7%. The Group achieved a higher net profit margin of 0.9% than that of 1H07, increasing from 13.1% to 14.0%. This is in spite of the additional costs incurred for expansion activities.
Distribution cost has increased by 169.7% as compared to FY2006 mainly due to the consolidation from its recently acquired subsidiary, Guided Wave Inc, the increase in marketing, sales and distribution activities and the increase in sales professionals
R&D expenses amounts to $0.2 million from the R&D activities of our newly acquired subsidiary, Guided Wave Inc.
Administrative expenses increased by 46.8% due to the increase in headcounts and professional fees to support the continued growth in the group businesses.
CommentaryThe Group continues to seek growth opportunities in our business and leverage on our technical and engineering expertise to strengthen our foothold in the markets where our businesses has presence in. The Group continues to target and ride on the strong and continued growth in the Oil & Gas and Petrochemical & Chemical Industries in our Key markets, particularly the PRC, Asia, USA, Middle East and Europe markets. The Group has also intensified its efforts and activities in the Clean Energy Division and the Environmental Solutions Division.
The Group will continue to focus our efforts on securing higher value contracts and forging strategic alliances with leading and renowned technologies partners; and the success is evident from our recent material contracts we have secured and announced during the past few months.
It is also within the Group's plans to incorporate new offices in China, Europe, Middle East and other parts in the Asia Pacific region to expand and strengthen its geographical and markets presence within the next 12-24 months.
During the second half of FY07, the Group had secured and announced a number of material contracts amounting to approximately $33.4 million. As at 31 Dec 2007, the outstanding orders for the Group was approximately $72.0 million. The Group's order books may not be indicative of its revenue for any successive period.
Barring any unforeseen circumstances, the Directors expect the Group to remain profitable for its financial year ending 31 December 2008.
Balance Sheet
