A Stronger <strong>Leeden</strong> in Asia.FinancialHighlightsFigures in S$‘000 unless otherwise stated2006 2007 2008 2009 <strong>2010</strong>(Restated)Turnover 86,066 102,892 157,239 186,148 191,470Profit Before Taxation 3,152 8,736 17,530 17,228 15,083Profit After Taxation 1,888 6,603 14,537 13,894 11,839Profit Attributable to Equity Holders 1,890 6,549 11,715 8,898 7,621Total Assets 76,988 82,596 186,146 200,311 207,916Total Liabilities 38,626 36,759 98,949 102,539 100,237Total Shareholders’ Equity 38,064 45,469 62,361 70,296 75,536Earnings Per Share (cents) 1.35 4.51 6.82 5.12 4.37Dividend Per Share (cents) 0.36 0.50 1.00 1.00 1.50NAV Per Share (cents) 27.10 31.10 36.10 40.40 43.20Sales Turnover (S$’000)Profit Before and After Tax (S$’000)180,000180,000120,00096,706140,549168,998177,06620,00016,00012,00017,53014,53717,22813,89415,08311,83990,00060,00069,2778,0008,7366,60330,00016,7896,18616,69017,15014,4044,0003,1521,88802006 2007 2008 2009 <strong>2010</strong> 2006 2007 2008 2009 <strong>2010</strong>0Industrial Property & others Profit Before Taxation Profit After Taxation16
<strong>Leeden</strong> <strong>Limited</strong> <strong>Annual</strong> <strong>Report</strong> <strong>2010</strong>FinancialReviewIncome StatementEmerging from a difficult operating environment in 2009,the Group reported a satisfactory 2.9% growth in revenue toS$191.5 million for the financial year ended 31 December<strong>2010</strong> (“FY<strong>2010</strong>”) from S$186.1 million in FY2009.Revenue from Industrial Business grew 4.8% to S$177.1million, primarily driven by improvement in the Weldingdivision under Industrial Business. Property and OtherSegments, however, saw a decline in revenue by 16.0%to S$14.4 million due to near completion of the PatersonLinc project.Gross profit declined 3.0% to S$52.4 million in FY<strong>2010</strong>as compared to S$54.0 million in FY2009, while grossprofit margin reduced marginally to 27.4% in FY<strong>2010</strong> from29.0% in FY2009. The reduction was mainly attributableto a lower contribution from the Property Segment and theGroup’s efforts in maintaining market share in midst ofkeen competition during the year.To fuel the Group’s expansion into the region, investmentsin human capital were made during the year, therebyincreasing the distribution costs and administrativecosts to S$26.7 million and S$11.9 million respectivelyin FY<strong>2010</strong>. Notably, the aggregate operating expenses(including distribution costs and administrative costs)remained constant at approximately 20% of total revenuefor both FY2009 and FY<strong>2010</strong>.Dedicated efforts in inventory and working capitalmanagement resulted in lower provisions required forstock obsolescence and doubtful debts, hence other costsdecreased 62.4% to S$1.3 million in FY<strong>2010</strong>.Finance costs trimmed down by 4.7% to S$1.9 million inFY<strong>2010</strong>, which was in line with management’s intentionto shift from short-term loans to trade financing in fundingworking capital.To sum it up, the Group registered S$15.1 million of profitbefore taxation and S$7.6 million of net profit attributableto shareholders, with a basic earnings per share of 4.37Singapore cents in FY<strong>2010</strong> (FY2009: 5.12 Singaporecents).Balance SheetNon-current assets increased S$10.2 million to S$83.8million as at 31 December <strong>2010</strong>, mainly due to theGroup’s facility expansion plans in relation to the IndustrialBusiness in Malaysia.Total current assets decreased S$2.6 million to S$124.1million as at 31 December <strong>2010</strong>, largely due to theincrease in inventory partially offset by reduction in tradedebtors. Trade debtors was reduced by S$5.8 millionwhich is consistent with the management’s efforts intightening receivables collection while trade debtors’turnover improved from 108 days in 2009 to 95 days as at31 December <strong>2010</strong>. The Group procured more stocks tomeet increasing sales during the year and hence increasedstock level as at 31 December <strong>2010</strong> to S$43.0 million.Correspondingly, stock turnover increased to 127 days inFY<strong>2010</strong> as compared to 115 days in 2009.Total liabilities decreased S$2.3 million to S$100.2 millionas at 31 December <strong>2010</strong>, represented by S$3.5 millionreduction in current liabilities and S$1.2 million increasein non-current liabilities. Lower level of current liabilitiesarose due to management’s plans to utilize trust receiptsfacilities effectively to repay trade creditors during theyear as well as repayment of short-term loans. The Grouphas drawn down more term loan facilities to fund capitalexpenditure and business expansions in <strong>2010</strong> and therebygiving rise to a higher long term borrowing balance ofS$13.6 million as at 31 December <strong>2010</strong>.The Group’s leverage ratio has improved from 0.47 timeas at 31 December 2009 to 0.40 time as at 31 December<strong>2010</strong>.Shareholders’ equity grew S$5.2 million to S$75.5million while total equity strengthened by S$9.9 million toS$107.7 million as at 31 December <strong>2010</strong>. As a result, netasset value per share rose to 43.2 Singapore cents as at31 December <strong>2010</strong> from 40.4 Singapore cents as at 31December 2009.17
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