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Financials Results
Unaudited Condensed Interim Financial Statements For The Six Months Ended 30 September 2024
Financials Archive
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Condensed Interim Consolidated Statement Of Profit Or Loss And Other Comprehensive Income
Condensed Interim Consolidated Statements Of Financial Position
Review of the Group's Performance
Review of condensed interim consolidated statement of profit or loss and other comprehensive income
Revenue
1H FY2025 vs 1H FY2024
For 6 months ended 30 September 2024 ("1H FY2025"), the Group's revenue was S$29.8 million, a decrease of S$11.0 million or 27.0% from S$40.8 million for the corresponding period ended 30 September 2023 ("1H FY2024").
The decrease in revenue is due to the Group’s ongoing efforts to streamline its offerings and porƞolio to focus on higher yield opportunities, which are expected to improve revenue and profit margins in subsequent periods.
Gross profit
1H FY2025 vs 1H FY2024
The Group reported gross profit of S$7.8 million in 1H FY2025, a decrease of S$0.9 million or 9.9% from a gross profit of S$8.7 million in 1H FY2024 due to lower revenues. Gross profit margin increased from 21.3% in 1H FY2024 to 26.3% in 1H FY2025 mainly due to: i) a focus on higher margin products and services; and ii) lower depreciation in 1H FY2025 due to plant and equipment and right-of-use assets which were impaired on 31 March 2024. The increase in gross profit was offset with an allowance for inventory obsolescence of S$522,000 in 1H FY2025 based on a review performed on 30 September 2024 as compared to a reversal of allowance for inventory obsolescence of S$7,000 in 1H FY2024.
Distribution costs
1H FY2025 vs 1H FY2024
Distribution costs decreased marginally by S$0.1 million or 2.9% from S$4.1 million in 1H FY2024 to S$4.0 million in 1H FY2025 mainly due to reduction in staff costs.
Administrative expenses
1H FY2025 vs 1H FY2024
Administrative expenses decreased by S$1.7 million or 17.1% from S$9.9 million in 1H FY2024 to S$8.2 million in 1H FY2025 mainly due to reductions in staff costs and lower depreciation and amortisation charges on plant and equipment, right-of-use assets and intangible assets which were impaired on 31 March 2024.
Other operating income
1H FY2025 vs 1H FY2024
Other operating income in 1H FY2025 increased by S$0.1 million or 67.0% from S$0.1 million in 1H FY2024 to S$0.2 million in 1H FY2025 mainly due to insurance claim received in 1H FY2025.
Other operating income included rental income, interest income, sundry income, government grants, net foreign exchange gain and recovery of bad debts.
Other operating expenses
1H FY2025 vs 1H FY2024
Other operating expenses increased by S$1.3 million to S$1.4 million in 1H FY2025 compared to the S$0.1 million in 1H FY2024.
1H FY2025 operating expenses comprise mainly i) net foreign exchange loss of S$1.3 million due to depreciaƟon of USD against SGD and depreciaƟon of HKD against SGD; and ii) loss on disposal of property, plant and equipment of S$0.1 million.
Impairment loss on trade receivables
1H FY2025 vs 1H FY2024
Impairment loss on trade receivables was S$0.3 million in 1H FY2025 as compared to reversal of impairment loss of S$0.1 million in 1H FY2024 based on a review of trade receivables performed on 30 September 2024.
Finance cost
1H FY2025 vs 1H FY2024
Finance cost in 1H FY2025 decreased by S$0.1 million or 16.2% from S$0.7 million in 1H FY2024 to S$0.6 million in 1H FY2025 due to repayment of borrowings in 1H FY2025.
Loss for the period
1H FY2025 vs 1H FY2024
In 1H FY2025, the Group reported a loss before income tax of S$6.4 million, an increase of S$0.4 million or 7.9% from the loss before income tax of S$6.0 million in 1H FY2024. This decrease in the loss before income tax was mainly due to a decrease in administrative expenses of S$1.7 million, offset by an increase in other operating expenses of S$1.3 million and a decrease in gross profit of S$0.9 million.
Total comprehensive loss for the period
1H FY2025 vs 1H FY2024
Total comprehensive loss for 1H FY2025 was S$5.8 million compared to S$6.1 million for 1H FY2024, mainly due to translation gains of S$0.6 million arising from consolidation, offset with an increase of S$0.4 million in loss after income tax.
Review of condensed interim consolidated statements of financial position
Current assets
Current assets at the Group level decreased by S$8.9 million or 16.1% from S$55.1 million as at 31 March 2024 to S$46.2 million as at 30 September 2024 mainly due to: (i) a decrease in inventories by S$1.7 million as a result of tighter controls over inventory and allowance for inventory obsolescence, (ii) a decrease in receivables of S$4.2 million, and (iii) a decrease in cash and cash equivalents of S$3.5 million, offset with an increase in contract assets of S$0.5 million.
Current assets at the Company level decreased by S$2.4 million or 36.6% mainly due to: (i) a decrease in receivables of S$1.8 million; (ii) a decease in contract assets of S$0.4 million; and (iii) a decrease in cash and cash equivalents of S$0.2 million.
Non-current assets
Non-current assets at the Group level decreased by S$7.0 million or 12.0% from S$58.7 million as at 31 March 2024 to S$51.6 million as at 30 September 2024. The decrease was mainly due to (i) a decrease of S$6.9 million in property, plant and equipment as result of disposal of property, plant and equipment, and depreciation charges, offset with the purchase of property, plant and equipment during 1H FY2025; and (ii) a decrease of S$0.2 million in right-of-use assets mainly due to depreciation charges, offset with new lease contracts.
Non-current assets at the Company level as at 30 September 2024 increased by S$2.6 million or 1.6% from S$156.5 million as at 31 March 2024 to S$159.1 million as 30 September 2024 mainly due to increased receivables from subsidiaries.
Current liabilities
Current liabilities at the Group level decreased by S$9.1 million or 22.7% from S$40.1 million as at 31 March 2024 to S$31.0 million as at 30 September 2024. The decrease was mainly due to: (i) repayment of S$4.1 million in bank borrowings; (ii) a decrease of S$4.8 million in payables due to payment made to suppliers and repayment of short-term advances from PeakBayou Ltd, the controlling shareholder of the Group; and (iii) a decrease of S$0.1 million in lease liabilities.
Other Payables of S$11.3 million as at 31 March 2024 at the Group level comprise:
- S$2.5 million in accrued expenses including staff-related expenses;
- S$0.6 million of GST payables;
- S$3.2 million in short-term advances and related interest, and consultation fee charge from the controlling shareholders of the Company; and
- S$5.0 million in non-trade payables with third parties.
Other Payables of S$10.5 million as at 30 September 2024 comprise:
- $2.0 million in accrued expenses including staff-related expenses,
- $0.2 million in GST payables,
- $2.3 million in short-term advances and related interest, and consultation fee charge from controlling shareholders of the Company; and
- S$6.0 million in non-trade payables with third parties.
Current liabilities at the Company level decreased by S$0.8 million or 13.3% from S$5.6 million as at 31 March 2024 to S$4.8 million as at 30 September 2024. The decrease was mainly due to the repayment of short-term advances received from the controlling shareholder of the Company.
Non-current liabilities
Non-current liabilities at the Group level decreased by S$1.1 million or 10.4% from S$9.8 million as at 31 March 2024 to S$8.7 million as at 30 September 2024. The decrease was mainly due to: (i) repayment of S$0.7 million in lease liabilities; and a decrease of S$0.4 million in deferred tax liabilities on revaluation reserve upon disposal of freehold land and building in 1H FY2025.
Capital, reserves and non-controlling interests
Shareholders’ equity decreased by S$5.8 million or 9.1% from S$63.9 million as at 31 March 2024 to S$58.1 million as at 30 September 2024, mainly due to total comprehensive loss of S$5.8 million suffered in 1H2025.
Review of condensed interim consolidated statements of cash flows
The cash and cash equivalents at 30 September 2024 decreased by S$2.5 million or 35.7% from S$7.1 million as at 31 March 2024 to S$4.6 million as at 30 September 2024.
Net cash (used in)/generated from operating activities
Net cash of S$1.2 million was used in operating activities in 1H FY2025 as compared to net cash of S$5.1 million generated from operating activities in 1H FY2024. Net cash used in operating cash before changes in working capital in 1H FY2025 was S$1.8 million as compared to S$2.7 million in 1H FY2024.
Net working capital inflow was S$0.8 million in 1H FY2025 as compared to S$7.8 million in 1H FY2024. The net working capital inflow in 1H FY2025 was mainly contributed by: (i) a decrease in trade and other receivables of S$2.4 million due to collection from customers; and (ii) a decrease in inventory of S$0.7 million resulting from efforts to reduce inventory, offset by (i) a decrease in trade and other payables of S$1.7 million mainly due to payment made to suppliers; and (ii) an increase in contract assets of S$0.5 million in 1H FY2025.
Net cash generated from/(used in) investing activities
Net cash of S$4.5 million was generated from investing activities in 1H FY2025 as compared to net cash of S$0.8 million used in 1H FY2024. This was mainly due to S$4.6 million in proceeds from the disposal of property, plant and equipment, offset by S$0.1 million in purchase of plant and equipment and intangible assets in 1H 2025.
Net cash used in financing activities
Net cash used in financing activities was S$5.9 million in 1H FY2025 as compared to S$2.4 million in 1H FY2024. This was mainly due to: (i) repayment of bank borrowings of S$4.1 million; (ii) repayment of advances from a shareholder of S$2.0 million; (iii) repayment of lease liabilities of S$0.9 million; (iv) interest paid on bank loans and lease liabilities of S$0.6 million, offset by (i) short term advance of S$1.0 million from a shareholder and (ii) decreased in restricted cash at bank of S$0.6 million.
Commentary
AMOS Group Limited (“AMOS) is a long-established supplier of products and service to energy and shipping customers from facilities operating in Asia, the Middle East, and Europe. The business prospects for AMOS are impacted by shifts in the global trade of goods as well as the development of current and existing energy resources.
The Group’s ongoing efforts to reduce trade receivables and inventory, pay down debt, drive efficiencies in its supply chain of goods and services to better serve customers and reduction of overhead expenditure have contributed positively to the Group’s performance.
The economic outlook continues to be positive albeit with geopolitical concerns weighing on sentiment. The energy and shipping industries are exhibiting strength.