LEE METAL GROUP LTD 2017 | 2016 | +/(-) | 2017 | 2016 | +/(-) | ||
Notes | $'000 | $'000 | % | $'000 | $'000 | % | |
Turnover | 86,423 | 87,745 | (1.5%) | 246,462 | 236,966 | 4.0% | |
Other operating income | A | 1,083 | 50 | 2066.0% | 1,235 | 440 | 180.7% |
Changes in inventories of finished | (71,836) | (69,536) | 3.3% | (201,270) | (184,524) | 9.1% |
goods and work-in-progress, raw materials and consumables used and finished goods purchased
Employee benefits expense | B | (4,963) | (5,201) | (4.6%) | (15,002) | (16,147) | (7.1%) |
Depreciation and amortisation | C | (2,474) | (2,781) | (11.0%) | (7,583) | (7,940) | (4.5%) |
Insurance, freight and transportation | D | (796) | (1,001) | (20.5%) | (2,185) | (2,835) | (22.9%) |
Rental and utilities | E | (1,626) | (1,460) | 11.4% | (4,691) | (4,890) | (4.1%) |
Repair and maintenance | F | (631) | (799) | (21.0%) | (2,009) | (2,397) | (16.2%) |
Other operating expenses | G | (2,297) | (1,967) | 16.8% | (6,823) | (5,818) | 17.3% |
Financial expense | H | (597) | (244) | 144.7% | (1,544) | (1,110) | 39.1% |
Financial income | I | 119 | 82 | 45.1% | 214 | 166 | 28.9% |
Share of results of associate | J | (14) | (16) | (12.5%) | (1) | 115 | n.m |
Profit before tax | 2,391 | 4,872 | (50.9%) | 6,803 | 12,026 | (43.4%) | |
Income tax expense | (505) | (857) | (41.1%) | (1,296) | (2,073) | (37.5%) | |
Profit attributable to equity holders of the | Company | 1,886 | 4,015 | (53.0%) | 5,507 | 9,953 | (44.7%) |
2017 $'000 | 2016 $'000 | +/(-) % | 2017 $'000 | 2016 $'000 | +/(-) % | |
Profit attributable to equity holders of the Company | 1,886 | 4,015 | (53.0%) | 5,507 | 9,953 | (44.7%) |
Other comprehensive income (Item that may be | ||||||
reclassified subsequently to profit or loss):- | ||||||
- Foreign currency translation reserve | 577 | 284 | 103.2% | (36) | (761) | (95.3%) |
Total comprehensive income attributable to equity holders of the Company | 2,463 | 4,299 | (42.7%) | 5,471 | 9,192 | (40.5%) |
A) Other operating income comprises the following: - Reversal of impairment loss on trade receivables | 2017 $'000 - | 2016 $'000 - | +/(-) % n.m | 2017 $'000 - | 2016 $'000 14 | +/(-) % (100.0%) |
- Gain on disposal of property, plant and equipment,net | 106 | 3 | 3433.3% | 106 | 3 | 3433.3% |
- Write-back of provision for cargo handling costs | 942 | - | n.m | 942 | - | n.m |
- Rental income | 35 | 35 | 0.0% | 105 | 105 | 0.0% |
- Sundry income | - | 12 | (100.0%) | 82 | 318 | (74.2%) |
1,083 | 50 | 2066.0% | 1,235 | 440 | 180.7% |
Employee benefits expense decreased by 4.6% in 3rd Quarter 2017 and 7.1% in the nine months ended 30 September 2017 mainly due to reduction in employee headcount in line with lower volume in Fabrication & Manufacturing business.
Depreciation and amortisation expense decreased by 11.0% in 3rd Quarter 2017 and 4.5% in the nine months ended 30 September 2017 due to reduction in acquisition of fixed assets.
Insurance, freight and transportation decreased by 20.5% in 3rd Quarter 2017 and 22.9% in the nine months ended 30 September 2017 due to decrease in transportation cost in line with lower tonnage delivered as well as lower costs from outsourcing of transport services.
For 3rd Quarter 2017, rental and utilities increased by 11.4% mainly due to lower rental for low inventory levels in the corresponding quarter last year. For the nine months ended September 2017, rental and utilities decreased by 4.1% as the Group streamlined its warehouse operations in the Fabrication & Manufacturing business.
Repair and maintenance decreased by 21.0% in 3rd Quarter 2017 and 16.2% in the nine months ended 30 September 2017 due to lower costs incurred for upkeeping and servicing machineries and motor vehicles in the Fabrication & Manufacturing business.
3rd Quarter ended 30 September Nine Months ended 30 September
2017
2016
+/(-)
2017
2016
+/(-)
$'000
$'000
%
$'000
$'000
%
Other operating expenses include:
- Worker's dormitories and related costs
150
391
(61.6%)
463
1,215
(61.9%)
- Tools and consumables
283
353
(19.8%)
1,435
1,005
42.8%
- Insurance
325
207
57.0%
983
864
13.8%
- Bank charges
19
25
(24.0%)
76
69
10.1%
- Trade commission
70
244
(71.3%)
278
403
(31.0%)
- Professional fees
133
88
51.1%
289
310
(6.8%)
- Travelling
124
153
(19.0%)
357
472
(24.4%)
- Printing and stationery
45
50
(10.0%)
289
277
4.3%
- Net loss in foreign exchange
89
104
(14.4%)
355
142
150.0%
- Property, plant and equipment written off
-
1
(100.0%)
-
4
(100.0%)
- (Reversal of impairment)/impairment loss of trade receivables
(168)
-
n.m
181
6
2916.7%
- Gain on disposal of property, plant and equipment, net
(18)
-
n.m
-
-
n.m
- Loss on liquidation of a subsidiary
759
-
n.m
759
-
n.m
- Other miscellaneous expenses
486 351 38.5%
1,358 1,051 29.2%
2,297 1,967 16.8%
6,823 5,818 17.3%
Financial expense increased by 144.7% in 3rd Quarter 2017 and 39.1% in the nine months ended 30 September 2017 mainly due to higher trade financing in Fabrication & Manufacturing business.
Financial income increased by 45.1% in 3rd Quarter 2017 and 28.9% in the nine months ended 30 September 2017 due to increase in interest income from banks.
For 3rd Quarter 2017, share of loss of associate decreased by 12.5% compared with the corresponding quarter last year. For the nine months ended 30 September 2017, share of loss of associate was $1k compared with share of profit of associate of $115k in the corresponding period last year. These were due to the last unit of our joint venture executive condominium project, Austville Residences being sold in April 2017 compared with 3 units sold in the first half of last year.
n.m means not meaningful
1(b)(i) STATEMENTS OF FINANCIAL POSITION
Group
30.09.2017
31.12.2016
Company
30.09.2017
31.12.2016
ASSETS
Notes
$'000
$'000
$'000
$'000
Non-current assets
Properties, plant and equipment
49,954
53,750
3,860
3,976
Investment property
1,886
1,918
-
-
Investment in subsidiaries Investment in associate
1
- 1,745
- 1,745
17,681
-
20,381
-
Club memberships
395
440
120
127
Deferred tax assets
693
693
-
-
54,673
58,546
21,661
24,484
Current assets
Inventories
76,528
79,177
-
-
Trade receivables
2
67,371
57,129
-
-
Other receivables and deposits
3
1,989
250
8
8
Prepayments
466
635
22
4
Asset held for sale
4
19,364
14,424
-
-
Forward exchange contracts
600
600
-
-
Due from subsidiaries (non trade)
-
-
23,939
18,509
Fixed deposits
17,651
28,758
-
8,500
Cash and bank balances
44,101
69,081
3,740
1,272
228,070
250,054
27,709
28,293
Total assets
282,743
308,600
49,370
52,777
1(b)(ii) Notes to the Statements of Financial PositionGroup
30.09.2017
31.12.2016
Company
30.09.2017
31.12.2016
Notes
$'000
$'000
$'000
$'000
EQUITY AND LIABILITIES
Current liabilities
Trade payables
3,901
4,383
21
23
Bills payable to banks (secured)
5
61,477
77,311
-
-
Other payables and accruals
6
7,352
9,854
292
283
Advance payment from customers
7
2,180
354
-
-
Provision for onerous contracts
8
12,287
14,287
-
-
Hire purchase creditors
3,921
4,802
-
-
Bank term loans (secured)
271
2,708
-
-
Income tax payable
4,483
5,231
284
316
95,872
118,930
597
622
Net current assets
132,198
131,124
27,112
27,671
Non-current liabilities
Hire purchase creditors
4,310
4,514
-
-
Deferred tax liabilities
278
277
278
278
4,588
4,791
278
278
Total liabilities
100,460
123,721
875
900
Net assets
182,283
184,879
48,495
51,877
Equity attributable to equity holders of the Company
Share capital
46,473
46,473
46,473
46,473
Retained earnings
140,052
142,612
2,022
5,404
Foreign currency translation reserve
(4,242)
(4,206)
-
-
182,283
184,879
48,495
51,877
Investment in subsidiaries decreased by $2.7m due to the member's voluntary liquidation of a wholly-owned dormant subsidiary, Steel Park Resouces Pte Ltd in May 2017.
Trade receivables increased by $10.2m mainly due to higher steel prices in 3rd Quarter 2017.
Other receivables and deposits increased by $1.7m mainly due to trade credit insurance claims.
Asset held for sale increased by $4.9m due to the additional costs incurred on redevelopment of new luxury bungalows.
Bills payable to banks decreased by $15.8m mainly due to repayment of bank borrowings using cash surplus. Correspondingly, fixed deposits and cash and bank balances have also decreased.
Other payables and accruals decreased by $2.5m mainly due to settlement of balances owing to other creditors.
Advance payment from customers increased by $1.8m due to advance payment received for our property development business.
Provision for onerous contracts decreased by $2.0m due to write-back of prior year's provision.
1(b)(iii) Group's borrowings and debt securities
corporate guarantees given by the Company and certain subsidiaries to the banks;
letters of negative pledges on the assets of the Company and certain subsidiaries, with the exception of property, plant and equipment under hire purchase arrangements;
a deed of charge and assignment of inventories and floating charge over trade receivables; and
the bank term loan is secured by legal mortgages over the Group's properties, plant and equipment with net book value of $16.2m (31 Dec 2016: $17.8m).
Amount repayable in one year or less, or on demand
As at 30.09.2017 | As at 31.12.2016 | ||
Secured | Unsecured | Secured | Unsecured |
$'000 | $'000 | $'000 | $'000 |
65,669 | - | 84,821 | - |
Amount repayable after one year
As at 30.09.2017 | As at 31.12.2016 | ||
Secured | Unsecured | Secured | Unsecured |
$'000 | $'000 | $'000 | $'000 |
4,310 | - | 4,514 | - |
The Group's bills payable and bank term loans are secured by the following:
Profit before tax
2017 2016 2017 2016Notes $'000 $'000 $'000 $'000
2,391 4,872 6,803 12,026Adjustments for: Amortisation of club memberships | 15 | 17 | 46 | 50 | |
Depreciation of property, plant and equipment | 2,448 | 2,753 | 7,505 | 7,858 | |
Depreciation of investment property | 11 | 11 | 32 | 32 | |
Property, plant and equipment written off | - | 1 | - | 4 | |
Gain on disposal of property, plant and equipment, net | (124) | (3) | (106) | (3) | |
Interest expense | 597 | 244 | 1,544 | 1,110 | |
Interest income | (119) | (82) | (214) | (166) | |
Foreign currency translation adjustments | 648 | 72 | (17) | (824) | |
Share of results of associate | 14 | 16 | 1 | (115) | |
Impairment loss of trade receivables | (168) | - | 181 | 6 | |
(Write-back of provision)/provision for onerous contracts | (1,000) | 6,188 | (2,000) | 6,188 | |
Operating cash flows before changes in working capital | 4,713 | 14,089 | 13,775 | 26,166 | |
(Increase)/decrease in: | |||||
Inventories | 38,893 | (44,226) | 2,646 | 11,381 | |
Trade receivables | (9,804) | (7,688) | (10,423) | 1,981 | |
Other receivables, deposits and prepayments Increase/(decrease) in: | 592 | 221 | (1,568) | 588 | |
Trade payables | (794) | (988) | (482) | (21,963) | |
Other payables and accruals | 1,216 | 2,791 | (677) | 1,221 | |
Cash flows from operations | 34,816 | (35,801) | 3,271 | 19,374 | |
Interest paid | (597) | (244) | (1,544) | (1,110) | |
Interest received | 119 | 82 | 214 | 166 | |
Income taxes paid | (440) | (1,042) | (2,044) | (2,526) | |
Net cash flows from/(used in) operating activities | 9 | 33,898 | (37,005) | (103) | 15,904 |
Investing activities | |||||
Purchase of property, plant and equipment | (444) | (153) | (1,089) | (2,438) | |
Proceeds from disposal of property, plant and equipment | 120 | 9 | 355 | 9 | |
Addition to asset held for sale | (2,648) | (470) | (4,940) | (757) | |
Net cash flows used in investing activities | 10 | (2,972) | (614) | (5,674) | (3,186) |
Financing activities | |||||
Decrease in fixed deposits - pledged | - | 450 | - | 450 | |
(Decrease)/increase in bills payable to banks (secured) | (65,512) | 44,693 | (15,834) | (1,397) | |
Repayment of bank term loans | (812) | (812) | (2,437) | (13,337) | |
Repayment of hire purchase | (1,319) | (1,356) | (3,960) | (4,034) | |
Dividends paid on ordinary shares | (2,373) | (2,373) | (8,067) | (8,067) | |
Net cash flows (used in)/from financing activities | 11 | (70,016) | 40,602 | (30,298) | (26,385) |
Net (decrease)/increase in cash and cash equivalents | (39,090) | 2,983 | (36,075) | (13,667) | |
Effect of exchange rate changes on cash and cash equivalents | (67) | 209 | (13) | 48 | |
Cash & cash equivalents at beginning of the year | 100,909 | 79,196 | 97,840 | 96,007 | |
Cash & cash equivalents at end of the period | 12 | 61,752 | 82,388 | 61,752 | 82,388 |
Lee Metal Group Ltd. published this content on 10 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 10 November 2017 10:23:07 UTC.
Original documenthttp://www.leemetalgroup.com/attachment/2017111017532819497579.pdf
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