View - Singapore Technologies Engineering

international recognition as a major land systems playerby being one of the 4 final contenders in the program.A number of other developmental projects, such as the40mm Air-Bursting Munitions, were started.2.3 MAJOR ACQUISITIONSThe sector acquired Founders Industries Pte Ltd(formerly known as Chartered Industries of Singapore(Pte.) Limited), full-year 2000 results of which arecombined in the sector’s results for the year, and alsoincreased its equity investment in Solectria Corporation,making it a 44.1%-owned associated company.Thesector made new investments in the Silvatech group ofcompanies and the Flyer Group and increased its stake inits subsidiary company Shanghai Elite Electric Vehicles Co.,Ltd from 80% to 100%.LAND SYSTEMS SECTOR PROFIT AND LOSS ACCOUNTS3. PROSPECTSProfit is expected to be higher in 2001 in tandem withexpected higher turnover.The Manufacturing, Upgrading& Repairs business group will continue to deliverexisting projects such as Bionix IFVs and SAR 21 assaultrifle.We will also commence delivering new programsin the automotive, munitions and weapons businesses.STAR accident repairs business will continue to expandwith another new workshop repair facility to cater tohigher intake of accident vehicles from the satellite centresand mobile reporting services. In the EngineeringServices and Trading business group, the Opel businesswill continue to grow with the introduction of newermodels and higher COE allocation. Inspection businesshas plans to open another inspection centre at a strategiclocation and will continue to provide satisfactory earningsin an otherwise mature market.2000 1999$’000 $’000Turnover 528,241 297,188Cost of sales (367,091) (218,089)Gross profit 161,150 79,099Other operating income 31,016 12,486Distribution and selling expenses (23,709) (18,432)Administration expenses (70,115) (40,005)Other operating expenses (22,551) (6,560)Profit from operations 75,791 26,588Other income (expenses) 3,054 161Financial expenses (374) (102)Profit before taxation 78,471 26,647Share of results of associated companies and joint ventures 6,179 6,44684,650 33,093Taxation (19,806) (4,755)Profit after taxation 64,844 28,338Minority interests 104 (339)Profit after taxation and minority interests but before extraordinary items 64,948 27,999Extraordinary items – (9,255)Net profit for the year 64,948 18,744LAND SYSTEMS SECTOR BALANCE SHEETS2000 1999$’000 $’000SHARE CAPITAL AND RESERVES 95,075 86,069MINORITY INTERESTS 2,254 3,54397,329 89,612Represented by:FIXED ASSETS 88,990 47,764SUBSIDIARIES – –ASSOCIATED COMPANIES AND JOINT VENTURES 82,333 48,901LONG TERM INVESTMENTS 160,619 –LOANS RECEIVABLE, NON-CURRENT 5,663 9,335CURRENT ASSETSStocks and work-in-progress 269,945 144,262Debtors, deposits and prepayments 571,391 107,715Loans receivable, current 3,321 5,102Amounts under fund management 85,469 96,082Bank and other liquid funds 315,635 287,0081,245,761 640,169CURRENT LIABILITIESCreditors and accruals 1,288,959 606,965Provisions 136,988 40,051Provision for taxation 42,696 5,508Short term bank loans 2,500 2,500Bank overdrafts (unsecured) 1,294 –1,472,437 655,024Net current assets (liabilities) (226,676) (14,855)110,929 91,145NON-CURRENT LIABILITIESLong term loan from minority shareholder 194 –Deferred income 6,707 1,411Deferred taxation 6,699 12297,329 89,612194 • visionreview of financial performance • 195