final output

REVIEW OF PAST OPERATING RESULTS AND FINANCIAL POSITIONS
The following selected financial information should be read in conjunction with the full text of this
Prospectus, including the Accountants’ Report set out on pages 89 to 103 of this Prospectus.
Operating Results of the Proforma Group (1)
< Financial year ended 31 March > Six months Six months
ended ended
30 September 30 September
($’000) 1998 1999 2000 1999 (2) 2000 (3)
Turnover (4)(5) 51,315 40,279 59,141 29,776 44,918
Operating profit before
depreciation, interest and
taxation 1,574 5,143 6,762 4,498 3,676
Other income/(expenses) 287 343 660 451 439
Depreciation
Net Interest Income/
(905) (1,421) (1,572) (661) (816)
(expenses)
Profit before tax and
(56) 54 (49) (24) (24)
extraordinary items 900 4,119 5,801 4,264 3,275
Taxation
Profit after taxation but before
minority interests and
(393) (1,380) (1,513) (998) (993)
extraordinary items 507 2,739 4,288 3,266 2,282
Minority interests – – – – –
Extraordinary items
Profit attributable to
shareholders of the
– – – – –
Company 507 2,739 4,288 3,266 2,282
EPS (cents) (6) 0.34 1.86 2.91 (7) 2.22 1.55
Diluted EPS (cents) (8) 0.29 1.54 2.42 (7) 1.84 1.29
Dividends declared per Share
Notes:-
– – 2.71 – –
(1) The financial statements of the Proforma Group for the periods under review have been prepared on the basis that the
Proforma Group has been in existence throughout the periods under review.
(2) Based on management accounts.
(3) Based on limited review by Deloitte & Touche. Please refer to pages 104 to 106 of this Prospectus.
(4) Prior to 1 April 1998, we recognised revenue and costs upon completion of 25% of the estimated cost to completion for
the project (“Completion”). However, with effect from 1 April 1998, we increased the revenue and cost recognition
threshold to 50% of Completion. Our management is of the view that as the size and number of projects increase, the
unanticipated costs to completion can be more accurately estimated at the 50% stage of Completion. By increasing the
threshold of revenue and costs recognition, our management believes that it would better reflect the matching of our
project revenues and costs, so as to have a better assessment of our project profits earned. The percentage completion
method is in line with the Singapore Accounting Standards and industry practice. Had we recognised revenue upon the
25% stage of Completion, our revenue and profit before tax for FY 1999 would have been $51,700,000 and $4,700,000
respectively and our revenue and profit before tax for FY 2000 would have been $70,100,000 and $6,300,000 respectively.
(5) In FY 2000, one of our subsidiaries, K&W, changed its accounting financial year-end from December 31 to March 31 to
align its year-end with that of ours. Had our subsidiary maintained its year-end at December 31, our revenue and profit
before tax for FY 2000 would have been $59,081,000 and $5,799,000 respectively. There were no changes to our
Group’s accounting policy from FY 1998 to FY 2000.
(6) For comparative purposes, EPS for the periods under review have been computed based on the profit after taxation but
before extraordinary items and the pre-Invitation share capital of 147,301,870 Shares.
(7) Had the Service Agreements as described on pages 69 and 70 of this Prospectus been in effect in FY 2000, our profit
before tax and earnings per share would have been $5.6 million and 2.84 cents respectively. The adjusted price earnings
ratio would have been 7.0 times based on the Issue Price of $0.20. Our diluted earnings per share would have been
2.36 cents.
(8) For comparative purposes, diluted EPS for the periods under review have been computed based on the profit after
taxation but before extraordinary items and the post-Invitation share capital of 177,301,870 Shares.
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