Financials

First Quarter Unaudited Financial Statement Announcement For The Quarter Ended 30 September 2011

Financials Archive

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Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Balance Sheet

Review of Performance

For the first quarter ended 30 September 2011, the Group's quicklime business registered a 56% increase in revenue to S$5.0 million, from S$3.2 million in the last corresponding quarter. This included a minor contribution from the hydrated lime plant, which has commenced operations. Accordingly, earnings increased by 54% from S$0.46 million to S$0.71 million.

During this quarter, the scrap metal trading business generated revenue of S$5.1 million and earnings of S$0.12 million. Whereas, it did not carry out any trade during the last corresponding quarter.

Accordingly, the Group's turnover rose from S$3.2 million to S$10.1 million in this quarter, and net earnings went up from S$0.2 million to S$1.0 million.

During this quarter, other operating expenses of the Group increased one-fold to S$1.3 million, mostly due to increases in utilities and overheads which were mainly attributable to the quicklime division, as a result of price hikes. Other net gains increased by 84% to S$1.1 million, which included a currency translation gain of S$0.3 million, whilst a currency translation loss of S$0.5 million was incurred in the last corresponding quarter.

The Group's financial position remained healthy, with a working capital of S$82.8 million as at 30 September 2011. The Group's net cash used in operating activities was S$3.0 million, mainly due to payments made to suppliers and for operating expenses. Accordingly, trade and other payables went down from S$6.0 million as at 30 June 2011 to S$4.1 million as at 30 September 2011. Trade receivables increased from S$13.0 million to S$16.2 million, while inventories reduced from S$4.5 million to S$3.7 million, in tandem with the increased turnover.

During this quarter, the purchases of property, plant and equipment pertaining to the expansion of quicklime plant and construction of hydrated lime plant amounted to S$1.3 million. The Group injected another S$1.2 million in Mindax Limited ("Mindax"), a minerals exploration company listed in Australia, by subscribing for its rights issue. After taking into account a fair value loss, available-for-sale financial assets, relating to the investment in Mindax, stood at S$4.5 million as at 30 September 2011.

Commentary On Current Year Prospects

Given the global economic slowdown and market uncertainties, the Group will continue to tread on cautious ground in conducting its businesses.

To enhance the Group's asset and earnings bases, continuous focus will be placed on seeking new investment projects.