Company Registration No. 196900057Z
Corporation Limited
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Half-Year Financial Highlights
(Unaudited Group Results)
6 months 6 months
ended ended
30.09.06 30.09.05 Change
S$’000 S$’000 %
Revenue 32,417 27,748 17%
Profit / (loss) from operating activities 3,982 (50) n/m
MICA (P) No. 199/08/2006
Finance costs (558) (664) -16%
Gain on disposition - 448 n/m
Profit / (loss) before share of results
of associated company 3,424 (266) n/m
Share of results of associated company - 1,223 n/m
Profit from operations before taxation 3,424 957 258%
Net profit attributable to shareholders 2,373 699 239%
Earnings per share Cents Cents %
Annual Publication by MTQ Corporation Limited
- Basic 2.49 0.73 241%
- Diluted 2.49 0.73 241%
30.09.06 31.03.06
Cents Cents %
Net asset value per share 62.39 54.75 14%
The Group’s net profit attributable to shareholders rose 239% from S$0.70m
in 1HFY06 to S$2.37m in 1HFY07, on the back of strong earnings from Oilfield
Engineering division. The division enjoyed significantly higher volumes of repair
work and contributions from the expanded component manufacturing segment. The
Engine Systems division also posted a strong recovery from its weak performance
in 1HFY06, benefiting from the integration of its fuel injection activities into several
key turbocharger branches, higher sales in the automotive performance products
segment as well as overhead savings.
The Group also received higher dividend income from its equity investment in RCR
Tomlinson Ltd. The profit increase was, however, offset by the absence of share
of associate profit and gain on disposal of the ROV fleet of the Subsea Robotics
division recognised in 1HFY06.
Current level of oilfield equipment repair work volumes are likely to sustain well
into 2HFY07. The Oilfield Engineering division will also enjoy a full contribution from the
expanded component manufacturing capability in the second half year. The Engine Systems
division will continue to leverage on its existing branch network to engage in aggressive cross-
selling of its turbocharger and fuel injection products, while seeking further cost savings across
its operating segments.
Moving into 2HFY07, the Group is not expected to receive any further dividend from RCR
Tomlinson Ltd.
The Directors have declared an interim dividend of 1.0 cents per share, less tax, to be paid in
respect of FY2007.
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Oilfield Engineering Division –
Riding the Next Wave
02 Market activities in the oil and energy
sector remain buoyant. We are happy to
the synergy to improve the quality of service to our
customers. Apart from enhancing our ability to take
announce that as part of the Division’s on bigger and more complex engineering projects
expansion programme, the investment and beyond the capabilities of our smaller competitors, it
commissioning of new machineries in our also facilitated the expansion of our OEM component
workshop have been successfully completed. manufacturing segment, a new engine of growth
Powered with increased capacity, the Division for the division.
is now in full force, handling higher repair work
volume and enjoying robust performance. Our continuous effort to educate employees on
proper operation procedures and safety measures
We are confident that these new machineries remains the linchpin of our programme.
with sophisticated technology will provide
Engine Systems Division –
On the March
The last half year has been focused on the implementation of the
Fuel Injection expansion programme through the opening of Perth
and Victoria operations (within the existing branch structures),
giving MTQ the distinction of being the only true national supplier
to the industry.
The two operations have attracted experienced operators and sales
have grown for this segment during this period, further extending
our market share.
MTQ Laverton Branch Victoria
Engine Systems Division – On the March (Cont’d)
Branch consolidations and rationalisation from a zero base this time last
have been completed with the integration year. We are also building
of the two Brisbane operations and we brand equity and recognition
are now focusing on logistics initiatives for another company owned
designed to reduce expenses in brand, ‘DTS’, which is used in
personnel and freight, and increase the the diesel turbo kits and fuel injection remanufacturing
service level to our customers through a side of the business.
more streamlined process.
The new ERP system is performing effectively
The division’s in-house ‘SONIC’ brand in the operational environment. Further
is growing in the market place with enhancements will be introduced before the
this brand being our flag carrier in the end of the year, again set to produce greater
performance automotive aftermarket efficiencies in operations.
and sales have grown impressively
What’s Happening @ MTQ?
Share Buyback
As part of its capital management efforts, the
Company conducted a share buyback programme
in September 2006, pursuant to the share
buyback mandate approved by shareholders at
the extraordinary general meeting held on 21
July 2006. To-date, the Company has acquired 4
million shares, representing approximately 4.2%
of its total issued shares. The shares are held by
the Company as treasury shares.
Lease
We are pleased to inform shareholders that been met, the Premises command a fair market
the Company has accepted JTC’s conditional value of S$3.95m, which is S$3.03m in excess of the
offer for the renewal of the lease of its existing net book value as at 30 September 2006.
premises situated at 182 Pandan Loop
Singapore 128373 for a further term of 27 years New Appointments
from 16 September 2009.
Board of Directors
Following the acceptance, the Company has
commissioned an independent valuation of the Mr. Philip Eng, an independent director of the
Premises. Based on the valuation report dated 25 Company, has retired as a director on 21 July
October 2006, and assuming that the terms and 2006. During his tenure as a director and Chairman
conditions stated in the offer of renewal have of the Remuneration Committee, Mr. Eng played
03
What’s Happening @ MTQ? (Cont’d)
an important role in the oversight of Singapore” in 2003 by the Institutional
the Group’s operations. We would like Investor Magazine.
to thank Mr. Eng for his guidance and
services and wish him every success in PT MTQ Engine Systems Indonesia
his other endeavours.
Following the departure of Mr. Garry
We welcome Mr. Kuah Boon Wee, our new Swainson, we welcome Mr. Ng Gak San
director on board MTQ. Mr. Kuah is currently as the new General Manager of PT MTQ
the Group CFO of PSA International. Prior Engine Systems Indonesia. Experienced
to joining PSA, he has held various senior and skilled in engineering and logistics,
management positions in Hong Kong, Mr. Ng also has extensive knowledge
Singapore and Australia, and was the CFO in IT services and regional marketing.
for Singapore Technologies Engineering, Prior to joining MTQ, Mr. Ng was
a company listed on the Singapore Stock with PT Eka Dharma Jaya Sakti, a
Exchange. Mr. Kuah brings with him distributor of Volvo Penta, handling the
broad and varied experiences in the business in Kalimantan. He has also served
financial markets and MNCs and has a in Hewlett Packard, managing alliances
track record of corporate achievements. with key business partners across the asia-
He was recognised as the “Best CFO in pacific region.
Contact Us
MTQ Corporation Limited
Chairman & CEO Kuah Kok Kim kkkuah@mtq.com.sg
Tel: 65-6777 7651
Group Financial Controller William Fong williamfong@mtq.com.sg
Tel: 65-6777 7651
MTQ Engineering Pte Ltd
Managing Director Peter Lock peterlock@mtq.com.sg
Tel: 65-6777 7651/ 65-6774 9395
PT MTQ Engine Systems Indonesia
General Manager Ng Gak San gaksan@mtqid.co.id
Tel: 62-31 744 2258
MTQ Engine Systems (Aust) Pty Ltd
Managing Director Les Healey les.healey@mtqes.com.au
Tel: 61-(0) 7 3274 3755
Website: http://www.mtq.com.sg
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