Docstoc

Half Year Financial Statement and Dividend FinanzNachrichten de

Document Sample
Half Year Financial Statement and Dividend FinanzNachrichten de Powered By Docstoc
					                                                Half Year Financial Statement and Dividend Announcement for
                                                             the period ended 31 December 2007

Company Registration No. 200413014R                                                                  Page 1 of 19
(Incorporated in The Republic of Singapore)


PART I    INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND
          FULL YEAR RESULTS

1(a)       An income statement (for the group) together with a comparative statement for the corresponding
           period of the immediately preceding financial year

CONSOLIDATED INCOME STATEMENTS
(Amounts expressed in thousands of Australian Dollar (“AUD”) currency)
These statements have not been audited.

                                                            ACTUAL              ACTUAL          ACTUAL

                                                        1 July 2007 to 31   1 July 2006 to 31   Variance
                                                         December 2007       December 2006
                                                                                                 Increase /
                                                                                                (Decrease)
                                                           AUD$’000            AUD$’000


Revenue                                                     202,217             126,087          60.4%
Cost of Sales                                             (170,438)           (104,524)          63.1%


Gross Profit                                                 31,779              21,563          47.4%


Gross Margin                                                  15.7%               17.1%


Other income                                                     526                 906        (41.9%)
Other operating expenses                                     (6,111)             (3,206)         90.6%
Administrative expenses                                      (8,077)             (6,524)         23.8%
Marketing and distribution                                     (866)               (363)        138.6%


Profit from operations                                       17,251              12,376          39.4%


Finance costs                                                  (509)               (793)        (35.8%)


Profit before taxation                                       16,742              11,583          44.5%


Income tax expense                                           (4,623)             (3,337)         38.5%


Profit after taxation                                        12,119                8,246         47.0%


Net Profit %                                                    6.0%                6.5%




Date of Announcement – 14 February, 2008
                                                 Half Year Financial Statement and Dividend Announcement for
                                                              the period ended 31 December 2007

Company Registration No. 200413014R                                                                      Page 2 of 19
(Incorporated in The Republic of Singapore)




NOTES TO FINANCIAL STATEMENTS

A.     UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

       a)      AusGroup Limited (the “Company”) was incorporated in the Republic of Singapore under the name
               of AusGroup Pte Ltd on 9 October 2004 as a private limited company. On 5 April 2005, it changed
               its name to AusGroup Limited as the Company converted to a public company limited by shares and
               was admitted to the Official List of the SGX-ST Dealing and Automated Quotation Systems (the
               “SGX –SESDAQ”) on 27 April 2005. On 11 June 2007 AusGroup was admitted to the Mainboard of the
               Singapore Exchange Securities Trading Limited.

       b)      AusGroup Limited Group (the “Group”) was formed as a result of acquiring 100% of the issued share
               capital of Ausclad Group of Companies Limited (“AGC”) on 30 November 2004. AGC is an integrated
               multi-disciplinary engineering services provider serving mainly the global needs of the oil & gas,
               LNG and resource mining (including the extraction and processing of mineral ores) industries. AGC
               operates predominately in Australia.

       c)      On 28 July 2006, the Company acquired a 100% stake in AGL Cactus Pte Ltd, a company holding a
               76.6% stake in Cactus Engineering & Trading Pte Ltd, a company incorporated in Singapore and
               operating in the areas of precision engineering and fabrication servicing the oil and gas industry. On
               21 November 2006 AGL Cactus Pte Ltd acquired the remaining 23.4% shareholding in Cactus
               Engineering & Trading Pte Ltd.

       d)      Actual results of the Group include the results of the Company for the half year from 1 July 2007 to
               31 December 2007 and the period 1 July 2006 to 31 December 2006




Date of Announcement – 14 February, 2008
                                                 Half Year Financial Statement and Dividend Announcement for
                                                              the period ended 31 December 2007

Company Registration No. 200413014R                                                                 Page 3 of 19
(Incorporated in The Republic of Singapore)


B.     PROFIT FROM OPERATIONS

       The following items have been included in determining the profit from operations:

                                                                               ACTUAL             ACTUAL

                                                                             1 July 2007 to     1 July 2006 to
                                                                           31 December 2007   31 December 2006

                                                                              AUD$’000           AUD$’000

       Other Income
       Interest income                                                             170                304
       Profit on disposal of plant & equipment                                       1                  1
       Sundry income                                                               310                410
       Foreign exchange gain                                                        45                191
                                                                                  526                906
       Amortisation and Depreciation
       Amortisation of leased plant & equipment incl in cost of sales              167                158
       Depreciation of property, plant & equipment incl in cost of sales         2,080              1,434
       Depreciation of property, plant & equipment incl in                         324                198
       administrative expenses
       Total Amortisation and Depreciation                                      2,571              1,790


       Employee Share Option Scheme costs                                         471                   -



C      FINANCE COSTS
                                                                               ACTUAL             ACTUAL

                                                                             1 July 2007 to     1 July 2006 to
                                                                           31 December 2007   31 December 2006

                                                                              AUD$’000           AUD$’000

       Finance Costs
       Bank overdraft and loans                                                     65                152
       Bank guarantee fees                                                         124                124
       Other loans                                                                  74                203
       Finance leases and hire purchase                                            246                314
       TOTAL INTEREST EXPENSE                                                     509                793




Date of Announcement – 14 February, 2008
                                                  Half Year Financial Statement and Dividend Announcement for
                                                               the period ended 31 December 2007

Company Registration No. 200413014R                                                                Page 4 of 19
(Incorporated in The Republic of Singapore)


D.     INCOME TAX EXPENSE

                                                                             ACTUAL             ACTUAL
                                                                           1 July 2007 to     1 July 2006 to
                                                                         31 December 2007   31 December 2006

                                                                            AUD$’000           AUD$’000

       Profit before taxation                                                16,742              11,583


       Prima facie taxation calculated at applicable rate on profit            4,862              3,337
       before taxation


       Adjustment for
       Capital allowance incentives                                             (239)                  -


       Total Income Tax Expense                                                4,623             3,337




Date of Announcement – 14 February, 2008
                                                    Half Year Financial Statement and Dividend Announcement for
                                                                 the period ended 31 December 2007

Company Registration No. 200413014R                                                                      Page 5 of 19
(Incorporated in The Republic of Singapore)


1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the
immediately preceding financial year
                                       Group Actual as at   Group Actual as at    Company Actual     Company Actual
                                         31 Dec 2007          30 June 2007       as at 31 Dec 2007    as at 30 June
                                                                                                          2007
                                              AUD $’000         AUD $’000            AUD $’000         AUD $’000
NON-CURRENT ASSETS
Property, plant & equipment                     39,839            31,579                    -                  -
Goodwill                                         9,314             9,264                    -                  -
Investment in subsidiaries                           -                 -               22,818             22,310
Due from subsidiaries                                -                 -               10,170              7,502
Deferred tax assets                              2,496             2,467                    -                  -
Total non-current assets                       51,649            43,310               32,988             29,812

CURRENT ASSETS
Construction work in progress in                20,838             8,396                     -                     -
excess of progress billings
Trade debtors                                   78,831            62,924                   -
Other debtors                                    6,400             1,614                 410                   70
Due from subsidiaries                                -                 -               8,645                    -
Bank and cash balances                           4,297            16,676               1,599               12,590
Total current assets                          110,366            89,610               10,654              12,660

Total Assets                                  162,015           132,920               43,642              42,472

CURRENT LIABILITIES
Trade creditors                                 18,185            17,704                    -                  75
Other creditors and accruals                    10,260             8,899                  179                 292
Interest bearing liabilities                     6,710             3,829                    -                   -
Overdraft                                        3,355                 -                    -                   -
Progress billings in excess of                   8,125             4,076                    -                   -
construction work in progress
Provisions                                      9,414             7,107                    -                    -
Provision for taxation                          5,764             5,476                   20                 ( 61)
Total current liabilities                      61,813            47,091                  199                 306

NON-CURRENT LIABILITIES
Interest bearing liabilities                    8,131             5,803                      -                     -
Deferred tax liabilities                        1,459             1,404                      -                     -
Other creditors and accruals                    3,911             2,890                      -                     -
Total non-current liabilities                  13,501            10,097                      -                     -

Total liabilities                              75,314            57,188                  199                 306

NET ASSETS                                     86,701            75,732               43,443              42,166

SHAREHOLDERS’ EQUITY
Share capital                                   43,159            43,159               43,159              43,159
Foreign currency translation reserve            (1,341)           (2,115)              (1,059)            ( 2,106)
Retained earnings                               44,883            34,688                1,343               1,113
Total shareholders’ equity                     86,701            75,732               43,443              42,166




Date of Announcement – 14 February, 2008
                                                 Half Year Financial Statement and Dividend Announcement for
                                                              the period ended 31 December 2007

Company Registration No. 200413014R                                                                    Page 6 of 19
(Incorporated in The Republic of Singapore)


1(b)(ii) Aggregate amount of group’s borrowings and debt securities

        Amount repayable in one year or less, or on demand


          ACTUAL AS AT 31 DECEMBER 2007             ACTUAL AS AT 30 JUNE 2007

               Secured            Unsecured            Secured          Unsecured

               AUD $’000           AUD $’000          AUD $’000          AUD $’000


                 10,065                 -               3,829                -


        Amount repayable after one year


          ACTUAL AS AT 31 DECEMBER 2007             ACTUAL AS AT 30 JUNE 2007

               Secured            Unsecured            Secured          Unsecured

               AUD $’000           AUD $’000          AUD $’000          AUD $’000


                  8,131                 -                 5,803                  -



Details of collateral

Australian Operations
Mortgages and charges provided by the company to:

         St Georges Bank
        Unlimited guarantee and indemnity given by AusGroup Limited.

        Equitable mortgage over shares of Ausclad Group of Companies Limited given by AusGroup Limited

Mortgages and charges provided by subsidiary companies to:

        St Georges Bank
        First registered fixed & floating charges over the assets and undertakings of Ausclad Group of Companies
        Limited, AGC Industries Pty Ltd & Seagate Structural Engineering Pty Ltd.

        First registered real property mortgage by Ausclad Group of Companies Limited over the commercial
        property located at 15 Beach Street, Kwinana WA 6167

        First registered real property mortgage by Seagate Structural Engineering Pty Ltd over the commercial
        property located at Lot 430 Beach Street, Kwinana WA 6167

        Unlimited guarantee and indemnity given by Ausclad Group of Companies Limited and AGC Industries Pty
        Ltd and Seagate Structural Engineering Pty Ltd.




Date of Announcement – 14 February, 2008
                                                Half Year Financial Statement and Dividend Announcement for
                                                             the period ended 31 December 2007

Company Registration No. 200413014R                                                                    Page 7 of 19
(Incorporated in The Republic of Singapore)


Singapore Operations

Mortgages & Charges provided by Cactus Engineering & Trading Pte Ltd to:

       DBS Bank Limited
       A first fixed charge over certain machinery, equipment and vehicles on term loans provided by the bank

       Legal assignment of insurance policies relating to the equipment and the term loan equipment

       Legal assignment of all trade receivables from the respective pre-approved trade debtors financed under
       BRS.

       Corporate guarantee from AusGroup Limited.

       Oversea Chinese Banking Corporation Limited
       First open legal mortgage over the property at 14 Tuas Link 1, Singapore 638596, or, where applicable,
       deed of assignment and mortgage signed in escrow.

       Deed of guarantee and indemnity monies from AusGroup Limited

       United Overseas Bank Limited
       A first fixed charge over certain machinery and equipment on term loans provided by the bank.

       First open legal mortgage over the property at 4 Tuas Link 1, Singapore 638591.




Date of Announcement – 14 February, 2008
                                                  Half Year Financial Statement and Dividend Announcement for
                                                               the period ended 31 December 2007

Company Registration No. 200413014R                                                                Page 8 of 19
(Incorporated in The Republic of Singapore)


1(c)   A cash flow statement (for the group), together with a comparative statement for the corresponding
period of the immediately preceding financial year

                                                                              ACTUAL             ACTUAL
                                                                             1 July 2007       1 July 2006
                                                                           to 31 December    to 31 December
                                                                                2007              2006
                                                                             AUD$’000           AUD$’000
Cash flows from operating activities
Profit before taxation                                                         16,742           11,583
Add/ (less) adjustments for
Depreciation and amortization of property, plant and equipment                  2,571            1,790
Profit on disposal of property, plant and equipment                                 (1)             (1)
Interest income                                                                   (170)           (304)
Interest expense                                                                  509              793
Operating cash flows before working capital changes                            19,651          13,861


Changes in operating assets and liabilities net of effects from
acquisitions of subsidiaries
Construction work in progress                                                   (8,393)              9
Trade debtors                                                                  (15,907)          1,962
Other debtors and prepayments                                                   (4,786)            433
Trade and other payables                                                        2,862           (9,103)
Increase in provisions                                                          2,306              596
Cash (utilized in)/ generated from operations                                  (4,267)          7,758


Interest paid                                                                     (481)           (985)
Interest received                                                                 170              304
Income tax paid                                                                 (4,335)         (3,697)
Net cash (utilized in)/ generated from operating activities                    (8,913)          3,380


Cash flows from investing activities
Proceeds from disposal of plant and equipment                                        -               7
Purchase of property, plant and equipment                                      (10,831)         (1,214)
Net cash (outflow) on acquisition of subsidiary
                                                                                     -          (3,550)
(see Note A below)
Net cash used in investing activities                                         (10,831)          (4,757)




Date of Announcement – 14 February, 2008
                                               Half Year Financial Statement and Dividend Announcement for
                                                            the period ended 31 December 2007

Company Registration No. 200413014R                                                             Page 9 of 19
(Incorporated in The Republic of Singapore)


                                                                          ACTUAL              ACTUAL
                                                                         1 July 2007         1 July 2006
                                                                       to 31 December      to 31 December
                                                                            2007                2006
Cash flows from financing activities
Dividends paid                                                               (1,924)               -
Proceeds from borrowings                                                       9,268                 264
Repayment of borrowings                                                      (4,108)             (3,674)
Net cash generated from/ (used in) financing activities                     3,236               (3,410)
Net decrease in cash and cash equivalents                                  (16,508)             (4,787)
Effect of exchange rate changes                                                  774               (541)
Movement in cash and cash equivalents for the six months                   (15,734)             (5,328)
Cash and cash equivalents at beginning of period                              16,676              26,393
Cash and cash equivalents at end of the six months                              942             21,065

Cash and cash equivalents represented by:
Cash and bank balances                                                         4,297             21,315
Fixed deposits                                                                     -                264
Bank overdraft                                                               (3,355)              (514)
Total cash and cash equivalents at end of six months                            942             21,065

Note A
Analysis of acquisition of subsidiary
Assets and liabilities acquired
Cash and bank balances                                                             -                 641
Trade debtors                                                                      -              7,160
Inventories and work in progress                                                   -              4,483
Other receivables and prepayments                                                  -              1,463
Property, plant & equipment                                                        -              9,578
Interest bearing Liabilities                                                       -            (7,570)
Amount due to AusGroup                                                             -               (969)
Trade and other payables                                                           -            (4,728)
Deferred tax liability                                                             -               (674)
Provision for taxation                                                             -               (580)
Net assets acquired                                                                -              8,804
Shares issued as consideration                                                     -             12,788
Cash consideration                                                                 -              3,222
Total purchase consideration                                                       -            16,010

Cash consideration                                                                 -              3,222
Less cash and cash equivalents acquired                                            -               (641)
Add amount due to AusGroup                                                         -                 969
Net cash consideration                                                             -              3,550




Date of Announcement – 14 February, 2008
                                                    Half Year Financial Statement and Dividend Announcement for
                                                                 the period ended 31 December 2007

Company Registration No. 200413014R                                                                Page 10 of 19
(Incorporated in The Republic of Singapore)


1(d)(i) A statement (for the issuer and group) showing either

         (i)       all changes in equity, or

         (ii)      changes in equity other than those arising from capitalisation issues and distributions to
                   shareholders, together with a comparative statement for the corresponding period of the
                   immediately preceding financial year


                                                             CURRENCY
                                                SHARE                         RETAINED
                                                            TRANSLATION                         TOTAL
                                               CAPITAL                        EARNINGS
                                                              RESERVE
                                               AUD$’000       AUD$’000         AUD$’000        AUD$’000

 Group
 Balance at 1 July 2007                         43,159         (2,115)          34,688           75,732
 Profit for the period                               -               -          12,119           12,119
 Dividends paid                                      -               -          (1,924)         (1,924)
 Foreign currency translation                        -             774                -            774
 difference
 Balance at 31 December 2007                   43,159          (1,341)          44,883          86,701


 Group
 Balance at 1 July 2006                         30,371           1,285          15,555           47,211
 Issue of shares                                12,788               -                -          12,788
 Profit for the period                               -                           8,246            8,246
 Foreign currency translation                        -           (733)                -           (733)
 difference
 Balance at 31 December 2006                   43,159             552           23,801          67,512




Date of Announcement – 14 February, 2008
                                                  Half Year Financial Statement and Dividend Announcement for
                                                               the period ended 31 December 2007

Company Registration No. 200413014R                                                                 Page 11 of 19
(Incorporated in The Republic of Singapore)




                                                          CURRENCY
                                               SHARE                      RETAINED
                                                         TRANSLATION                      TOTAL
                                              CAPITAL                     EARNINGS
                                                           RESERVE
                                              AUD$’000     AUD$’000       AUD$’000       AUD$’000

 Company
 Balance at 1 July 2007                       43,159        (2,106)         1,113         42,166
 Profit for the period                             -              -         2,154          2,154
 Dividends paid                                    -              -        (1,924)       (1,924)
 Foreign currency translation                      -          1,047              -         1,047
 difference
 Balance at 31 December 2007                  43,159        (1,059)         1,343        43,443


 Company
 Balance at 1 July 2006                       30,371         1,148            900         32,419
 Issue of shares                              12,788              -              -        12,788
 Loss for the period                               -              -           (28)          (28)
 Foreign currency translation                      -          (104)              -         (104)
 difference
 Balance at 31 December 2006                  43,159         1,044            872        45,075




Date of Announcement – 14 February, 2008
                                                 Half Year Financial Statement and Dividend Announcement for
                                                              the period ended 31 December 2007

Company Registration No. 200413014R                                                                   Page 12 of 19
(Incorporated in The Republic of Singapore)


1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-
         backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of
         shares for cash or as consideration for acquisition or for any other purpose since the end of the
         previous period reported on. State also the number of shares that may be issued on conversion of all
         the outstanding convertibles as at the end of the current financial period reported on and as at the
         end of the corresponding period of the immediately preceding financial year

       Not applicable

2.     Whether the figures have been audited or reviewed and in accordance with which auditing standard or
       practice

       The figures have not been audited or reviewed by the auditors.

3.     Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or
       emphasis of a matter)

       Not Applicable.

4.     Whether the same accounting policies and methods of computation as in the issuer’s most recently
       audited annual financial statements have been applied

       The Group has applied the same accounting policies and methods of computation in the Group’s financial
       statements for the current financial period compared to the audited financial statements for the year
       ended 30 June 2007 except for the adoption of the applicable new and revised Financial Reporting
       Standards (FRS) that became effective for the Group for the financial year beginning 1 July 2007 as follows:
       FRS107: Financial Instrument Disclosures
       FRS108: Operating Segments

       The adoption of these new and revised FRS did not have any significant financial impact on the Group.

5.     If there are any changes in the accounting policies and methods of computation, including any
       required by an accounting standard, what has changed, as well as the reasons for, and the effect of,
       the change

       There were no changes in the accounting policies and methods of computation, except for the
       reclassification of certain costs within the income statement. As part of its program to continuously
       improve financial reporting, management has examined in detail how costs are allocated to specific
       projects. The purpose of this program was to ensure that all specific costs that can be allocated to a
       project are recognised to enhance the accuracy of job quotations and measurement of job performance as
       well as project management accountability.

       As a result of this review, in the current period certain costs previously included under “other operating
       expenses” in the Income Statement have been allocated to specific contracts and accordingly reclassified
       to cost of sales. As a result, comparative results have been adjusted to reflect this classification.

       The impact of the reclassification on the comparative period ended 31 December 2006 is to reduce gross
       profit from AUD$ 28.4 million to AUD$ 21.6 million and the gross margin from 22.6% to 17.1%. There is no
       impact on the net profit before tax of the Group.

       Please refer to paragraph 4.




Date of Announcement – 14 February, 2008
                                                   Half Year Financial Statement and Dividend Announcement for
                                                                the period ended 31 December 2007

Company Registration No. 200413014R                                                                  Page 13 of 19
(Incorporated in The Republic of Singapore)


6.     Earnings per ordinary share of the group for the current financial period reported on and the
       corresponding period of the immediately preceding financial year, after deducting any provision for
       preference dividends

                                                                                    ACTUAL            ACTUAL
                                                                                 1 July 2007 to    1 July 2006 to
                                                                                 31 December       31 December
                                                                                      2007              2006
                                                                                   AUD$’000          AUD$’000
         Profit after taxation                                                      12,119             8,246


         Weighted average number of ordinary shares in issue applicable to
                                                                                   393,955           385,961
         earnings (‘000)
         Earnings per ordinary share (AUD cents)
         - Basic                                                                       3.1               2.1
         - Diluted                                                                     3.1               2.1

       Basic earnings per share is calculated by dividing the profit after tax attributable to members of the
       Company by the weighted average of the number of shares outstanding during the period.

       For the purposes of calculating diluted earnings per share, the weighted average number of shares on issue
       have been adjusted as if all dilutive share options were exercised. The number of shares that could have
       been issued upon the exercise of all dilutive shares is added to the denominator as the number of shares
       issued for no consideration. No adjustment is made to the profit after tax.

7.     Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer
       at the end of the:-

       (a)         current financial period reported on; and
       (b)         immediately preceding financial year


                                               Group Actual    Group Actual    Company Actual     Company Actual
                                                  As at            As at           As at               As at
                                               31 Dec 2007     30 June 2007     31 Dec 2007        30 June 2007

                                                AUD$’000        AUD$’000         AUD$’000           AUD$’000
         Net Asset Value
         Net assets (AUD $’000)                  86,701           75,732           43,443            42,166


         Net asset value per ordinary              22.0              19.2             11.0              10.7
         share based on Issued share
         capital at the end of the
         respective periods (AUD cents)

       Net asset value per ordinary share is calculated based on 393,954,773 ordinary shares as at 31 December
       2007 (30 June 2007: 393,954,773 ordinary shares)


Date of Announcement – 14 February, 2008
                                                Half Year Financial Statement and Dividend Announcement for
                                                             the period ended 31 December 2007

Company Registration No. 200413014R                                                                  Page 14 of 19
(Incorporated in The Republic of Singapore)


8.     A review of the performance of the group, to the extent necessary for a reasonable understanding of
       the group’s business. It must include a discussion of the following:-

       (a)     any significant factors that affected the turnover, costs, and earnings of the group for the
               current financial period reported on, including (where applicable) seasonal or cyclical factors;
               and

       (b)     any material factors that affected the cash flow, working capital, assets or liabilities of the
               group during the current financial period reported on


       A       Income Statement (FY2008 vs FY2007)

       (i)     Revenue
               Revenue for the first half of FY2008 increased by 60% to AUD$202 million (FY2007: AUD$126
               million) contributed principally by growth from Australia. This increase was primarily due to the
               continuing growth in the engineering division on the back of strong demand in the commodities and
               oil and gas sectors, particularly from the mechanical, structural and installation division which
               performed superbly. This was supported strongly by an excellent performance from the services
               division which benefited from plant shutdowns which were deferred from the previous financial
               year and other planned maintenance activities.

       (ii)    Cost of Sales and Gross Profit

               Cost of Sales
               The cost of sales increased by 63% to AUD$170.4 million (FY2007: AUD$104.5 million) reflecting the
               increase in revenue.

               Gross Profit
               The margins declined from 17.1% during the first half of FY2007 to 15.7% during the first half of
               FY2008. Gross profit margins declined as certain variation claims associated with the work
               undertaken within the Engineering division had not been finalized prior to the end of the reporting
               period. Provision has been made for costs associated with the performance of work under variation
               where the outcome is uncertain. The gross margins in Singapore improved due to market conditions
               and better execution of contracted work.




Date of Announcement – 14 February, 2008
                                                Half Year Financial Statement and Dividend Announcement for
                                                             the period ended 31 December 2007

Company Registration No. 200413014R                                                                  Page 15 of 19
(Incorporated in The Republic of Singapore)



       (iii)   Operating and Administration Expenses

               Operating Expenditure
               The operating costs increased by 91% due principally to increased salary costs for additional
               resources employed to manage and support the expanding Group’s operations, together with the
               associated recruitment costs required. There was a continued focus on Health Safety and
               Environment and additional resources have been made available to provide expanded services. The
               Electrical division as well as an Efficiency and Technology department was established in the first
               half of the FY2008.

               Administration Expenditure
               Administration expenses increased by 23.8% to AUD$8.1 million (FY2007: AUD$6.5 million). The
               growth in both the Singapore operations since its acquisition in late July 2006 and the Australian
               operations over the past two years has necessitated the employment of additional finance and
               administration, commercial, human resources, business development, information technology and
               executive staff. As well as employing to cater for the current operating demands, the Group has
               also been gearing up for the Group’s continuing growth and this investment in people is seen as a
               critical element to achieving of our business objectives. This recruitment process will continue in
               the second half of the year.




Date of Announcement – 14 February, 2008
                                                 Half Year Financial Statement and Dividend Announcement for
                                                              the period ended 31 December 2007

Company Registration No. 200413014R                                                                  Page 16 of 19
(Incorporated in The Republic of Singapore)



       (iv)    Other Income
               Other income for the first half of FY2008 decreased by 42% to AUD$0.5 million (FY2007: AUD$0.9
               million). The main contributor to this reduction was a slight reduction in interest earned on the
               call account which has reduced to fund the working capital required for the continued growth.

       (v)     Finance Costs
               Financing costs for the first half of FY2008 decreased by 36% to AUD$0.5 million (FY2007: AUD$0.8
               million). Excellent positive cash flows achieved during the previous year has allowed the Group to
               repay a considerable amount of interest bearing borrowings thus reducing its overall financing
               costs. In addition cash balances held by AusGroup were utilized and loaned to Cactus Engineering &
               Trading Pte Ltd, thus reducing their external financing costs.

       (vi)    Income Tax
               Please refer to Section 1 (a) Note D.

       (vii)   Profit after tax
               Profit after tax for the first half of FY2008 increased by 47% to AUD$12.1 million (FY2007: AUD$8.2
               million). The increase in profitability reflects the significantly increased revenue generated in
               Australia and improved margins in Singapore. Revenue was at slightly lower margins in Australia
               due to the timing of the closure and finalization of two major contracts whilst other operating
               expenses increased considerably compared to the prior period as management structures were
               strengthened to support the Group’s continued strong growth. This should be read in conjunction
               with notes 8 A (i) to (vi) above.




Date of Announcement – 14 February, 2008
                                                Half Year Financial Statement and Dividend Announcement for
                                                             the period ended 31 December 2007

Company Registration No. 200413014R                                                                 Page 17 of 19
(Incorporated in The Republic of Singapore)



       B       Balance Sheet (FY2008 vs 2007)

       (i)     Shareholders’ Equity
               Total shareholders’ equity at 31 December 2007 amounted to AUD$86.7 million, representing a 15%
               increase over the previous year (FY2007: AUD$75.7 million). The increase was due primarily to the
               contributions from the current year’s net profit after tax.

       (ii)    Non-current Assets
               Total non-current assets amounted to AUD$51.6 million at 31 December 2007, representing a 19%
               increase over the previous year (FY2007: AUD$43.3 million). This increase was due to the capital
               expenditure programme to support the expanding business operations.

       (iii)   Current Assets
               Total current assets amounted to AUD$110.4 million at 31 December 2007, representing a 23%
               increase over the previous year (FY2007: AUD$89.6 million). The Group’s cash and bank deposits
               declined due to the increase in working capital required to finance the expanding business,
               particularly in the areas of work in progress and trade receivables. Trade receivables balances
               increased on the back of the growth in revenue as well as the timing of payments from customers
               on larger projects in this financial period. Construction Work in Progress increased significantly
               due to several major contracts that are currently in the process of being finalised.

       (iv)    Current Liabilities
               Total current liabilities amounted to AUD$61.8 million, representing a 31% increase over year end
               (FY2007: AUD$47.1 million). There were increases in trade creditors, other creditors and income
               tax provisions. Interest bearing liabilities, which includes bank overdrafts, increased by $6.2
               million to accommodate the increased working capital requirements.

       (v)     Non-current Liabilities
               Total non-current liabilities increased by AUD$3.4 million to AUD$13.5 million (FY2007: AUD$10.1
               million). This is due to the increased workers compensation provision as a result of the increased
               salaries and wages as well as increased loans to fund the acquisition of property, plant and
               equipment.

9.     Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any
       variance between it and the actual results

       Not applicable.




Date of Announcement – 14 February, 2008
                                                             Half Year Financial Statement and Dividend Announcement for
                                                                          the period ended 31 December 2007

Company Registration No. 200413014R                                                                                           Page 18 of 19
(Incorporated in The Republic of Singapore)



10.      A commentary at the date of the announcement of the significant trends and competitive conditions of
         the industry in which the group operates and any known factors or events that may affect the group in
         the next reporting period and the next 12 months

         In the next twelve months, the Group is optimistic about its business growth potential in view of the
         ongoing demand in the oil and gas and resources expansion projects in Western Australia and the Asia
         Pacific Region. The labour market in Western Australia remains competitive with unemployment running at
         record low. The Group recognises the challenge of attracting and retaining talent in this competitive
         environment.

         Our current group order book, including the recurring maintenance business, amounts to approximately
         AUD$208 million at the end of January 2008.

         The Group continues to tender for new projects and is hopeful of securing some of these contracts within
         the next few months, which should contribute positively to the Group’s performance.

         In addition, the subsidiary in Singapore, Cactus Engineering & Trading Pte Ltd, has announced the
         execution of a sale and purchase agreement to acquire an additional property in Singapore. This will
         provide additional land and buildings to meet expected growth in demand for precision engineering
         services from their customers in the subsea industry sector. Transfer of the property is expected in
         February 2008 and the building programme will commence immediately.

         It is also expected that additional facilities will allow the Singapore operations to extend the services
         provided to existing and potentially new customers as demand continues to flow from increased
         development of offshore oil and gas fields both within the Asia Pacific Region and globally.

         The Board expects the Group to continue to perform well.


This release contains certain statements that are not statements of historical fact, i.e. forward looking statements. Readers can identify
some of these statements by forward looking terms such as “expect”, ‘believe’, ‘plan’, ‘intend’, ‘estimate’, ‘anticipate’, ‘may’, ‘will’,
‘would’, ‘could’, or similar words. However, you should note that these words are not the exclusive means of identifying forward looking
statements. Forward looking statements are made based on current expectations, projections and assumptions about future events.
Although AusGroup believes these expectations, projections and assumptions are reasonable at the time of making them, these forward
looking statements are subject to risks (known and unknown), uncertainties and certain assumptions about AusGroup, its business
operations, and the environment it operates in. Actual future performance, outcomes and results may therefore differ materially from
those expressed in the forward looking statements. Representative examples of these risk factors include (without limitation) general
industry and economic conditions, availability of suitably skilled workers, interest rate movements, cost of capital and capital availability,
competition from other companies, shifts in customer demands, changes in operating expenses , including employee wages, benefits and
training and government and public policy changes. Readers are cautioned not to place undue reliance on these forward looking
statements, which are based on current view of management on future events.




Date of Announcement – 14 February, 2008
                                                Half Year Financial Statement and Dividend Announcement for
                                                             the period ended 31 December 2007

Company Registration No. 200413014R                                                                 Page 19 of 19
(Incorporated in The Republic of Singapore)



11.    Dividend

       (a) Current Financial Period Reported On
       Any dividend declared for the current financial period reported on?

       None

       (b) Corresponding Period of the Immediately Preceding Financial Year
       Any dividend declared for the corresponding period of the immediately preceding financial year?

       No dividend was declared for the previous financial period.

       (c) Date payable

       Not applicable

       (d) Books closure date

       Not applicable

12.    If no dividend has been declared/recommended, a statement to that effect

       No dividend has been declared/recommended for the 6 months ended 31 December 2007

13.    Negative Assurance pursuant to Rule 705 (4) of the Listing Manual.

       To the best of our knowledge, nothing has come to the attention of the board of directors which may
       render the interim financial statements to be false or misleading in any material aspect.




ON BEHALF OF THE BOARD




Mr Koh Soo Keong                                       Mr John Fitzgerald Boyd Sheridan
Chairman                                               Managing Director


14 February 2008




Date of Announcement – 14 February, 2008

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:11/8/2012
language:English
pages:19