Financial and Business Review

Extracted from Annual Report 2009

The Group reported a loss for the year of S$2.63 million as compared to S$5.15 million for FY 2008.

The Group’s revenue for FY 2009 amounted to S$11.38 million, as compared to S$11.19 million for FY 2008. The Group’s waterproofing division remained the key driver for the Group’s revenue.

The growth in the Group’s revenue was mainly driven by an increase in business activities as well as higher revenue recognition from progressive completion of its projects undertaken in FY 2009.

In FY 2009, the Group’s marketing activities contributed to 43% of the total revenue while the Group’s contracting arm generated 57% of the total revenue, as compared with 44% and 56% respectively for FY 2008.

The Group predominantly operates in Singapore, Malaysia and China. For the year under review, all of our geographical markets, save for Singapore, registered revenue growth. Malaysia accounted for 24% of FY 2009 revenue while China’s contribution was 10.6%, as compared with 16% and 7.6% respectively for FY 2008.

The Group’s gross profit increased to S$3.69 million for FY 2009, from S$3.37 million for FY 2008. The higher margin was due mainly to change in product mix which carried a better profit yield as well as improved utilisation of our manufacturing plant in China.

The Group’s operating expenses for FY 2009 amounted to S$6.00 million, as compared to S$6.68 million for FY 2008. The Group’s other operating expenses, net of other operating income, for FY 2009 amounted to S$29,185, as compared to S$1.47 million for FY 2008. One-off provisions in respect of project management services in FY 2008 of S$1.18 million resulted in higher other operating expenses for FY 2008.

The Group’s equity grew by S$1.21 million to S$14.47 million as at 30 June 2009, as compared with S$13.26 million as at 30 June 2008. Net proceeds of S$3.73 million from the placement of 79.50 million new shares at S$0.05 per share, accounted mainly for the increase.

As at 30 June 2009, the Group’s net current assets amounted to S$13.70 million, as compared with S$12.56 million as at 30 June 2008. The increase was due mainly to increase in bank balances as well as higher trade receivables.