Beyonics Technology Limited - Investor Relations

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Corporate Announcements

14 Feb 2003	Previous Page

Half Year Financial Statement Announcement

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.

Group

	31/01/2003	31/01/2002	Change
	$'000	$'000	%
Turnover	287,341	308,621	(6.9)
Cost of Sales	(264,420)	(286,616)	(7.7)
Gross Profit	22,921	22,005	4.2
Investment income	0	0	0
Other income including interest income	293	462	(36.6)
Operating profit before income tax, minority interests, interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	20,407	16,881	20.9
Interest on borrowings	(345)	(562)	(38.6)
Depreciation and amortisation	(7,264)	(7,225)	0.5
Foreign exchange (loss)/gain	(800)	1,151	(169.5)
Exceptional items	0	0	0
Operating profit before income tax, minority interests but after interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	11,998	10,245	17.1
Loss derived from associated company	0	(22)	nm
Operating profit before income tax	11,998	10,223	17.4
Less income tax	1,990	1,718	15.8
Operating profit after tax before deducting minority interests	10,008	8,505	17.7
Less minority interests	(60)	(108)	(44.4)
Operating profit after tax attributable to members of the Company	10,068	8,613	16.9

nm: not meaningful

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

The Group

The Company

	31/01/2003	31/07/2002	31/01/2003	31/07/2002
	$'000	$'000	$'000	$'000
Non-Current Assets
Fixed assets	110,539	92,554	17	20
Subsidiary companies	0	0	108,901	93,901
Long term investments	577	582	11	11
Investment properties	8,738	8,888	0	0
Interest in joint venture	0	53	0	0
Intangible assets	61	195	0	0
	119,915	102,272	108,929	93,932
Current Assets
Stocks	28,268	34,749	0	0
Trade debtors	101,796	102,136	0	0
Other debtors	14,715	10,607	9	26
Amount due from subsidiary companies	0	0	79,912	88,350
Short term investments	68	96	68	96
Fixed deposits	780	7,901	0	0
Cash and bank balances	51,523	35,168	666	1,512
	197,150	190,657	80,655	89,984
Current Liabilities
Trade creditors	108,493	101,674	0	0
Other creditors and accruals	22,792	21,600	484	587
Amount due to subsidiary companies	0	0	12,963	9,136
Hire purchase creditors	224	474	0	0
Provision for taxation	7,719	7,560	142	143
Bank borrowings	13,225	8,000	5,000	5,000
	152,453	139,308	18,589	14,866
Net Current Assets	44,697	51,349	62,066	75,118
Hire purchase creditors	550	559	0	0
Long term loan	8,600	8,600	8,600	8,600
Deferred taxation	1,745	1,874	0	0
Net Assets	153,717	142,588	162,395	160,450
Capital and Reserves
Share capital	89,690	86,768	89,690	86,768
Share premium	82,944	79,818	82,944	79,818
Capital reserve	2,147	2,147	0	0
Merger reserve	0	0	25,036	25,036
Accumulated losses	(5,531)	(12,101)	(35,275)	(31,172)
Foreign currency translation reserve	(15,760)	(14,296)	0	0
	153,490	142,336	162,395	160,450
Minority interests	227	252	0	0
Total Equity	153,717	142,588	162,395	160,450

1(b)(ii) Aggregate amount of group's borrowings and debt securities
Amount repayable in one year or less, or on demand

As at 31/01/2003

As at 31/07/2002

Secured	Unsecured	Secured	Unsecured
5,449,000	8,000,000	474,000	8,000,000

Amount repayable after one year

As at 31/01/2003

As at 31/07/2002

Secured	Unsecured	Secured	Unsecured
550,000	8,600,000	559,000	8,600,000

Details of any collateral

Included in short-term bank borrowings is an amount of $5,225,000 that is secured by mortgages of a subsidiary company's leasehold land and plant and machinery.

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

The Group

	31/01/2003	31/01/2002
	$'000	$'000
Cashflow from operating activities
Profit before taxation and minority interests	11,998	10,223
Adjustments for:
Share of loss of assciated company	0	22
Depreciation of fixed assets	7,245	7,200
Amortisation of preliminary and pre-operating expenses	0	25
Amortisation of goodwill	19	0
Provision for diminution in value of quoted investments	28	27
(Gain)/loss on sale of fixed assets	(51)	148
Interest expense	345	562
Interest income	(58)	(51)
Currency re-alignment	(992)	1,151
Operating profit before reinvestment of capital	18,534	19,307
Decrease in stocks	9,676	321
Decrease/(Increase) in trade debtors	6,441	(32,287)
Increase in other debtors	(3,633)	(3,992)
Increase in trade creditors	2,971	21,214
Increase in other creditors and accruals	173	21,383
Cash generated from operations	34,162	25,946
Interest paid	(345)	(562)
Interest received	58	51
Tax paid	(1,979)	(369)
Net cash provided from operating activities	31,896	25,066
Cash flows from investing activties:
Proceeds from sale of fixed assets	1,425	759
Purchase of fixed assets	(12,754)	(6,992)
Cash flow on acquisition, net of cash acquired	(7,685)	0
Purchase of investments	0	(190)
Net cash (used in) investing activities	(19,014)	(6,423)
Cash flows from financing activities:
(Payment)/proceeds of hire purchase creditors	(259)	388
Proceeds from term loans	0	8,600
Proceeds from the exercise of share options and warrants	109	358
Repayment of bank borrowings	0	(16,898)
Payment of dividends	(3,498)	0
Net cash (used in) financing activities	(3,648)	(7,552)
Net increase in cash and cash equivalents	9,234	11,091
Cash and cash equivalents at beginning of period	43,069	16,942
Cash and cash equivalents at end of the period	52,303	28,033

The acquisition of subsidiary company, Pacific Plastics Pte Ltd has been shown in the statement as a single item.The effect on the individual assets and liabilities is set out below:-

	$'000
Fixed assets	14,080
Intangible assets	34
Cash and bank balances	1,376
Stocks	3,195
Trade debtors	6,101
Other debtors	475
Trade creditors	(3,848)
Other creditors and accruals	(1,019)
Amount due to bankers	(5,225)
Provision for taxation	(19)
Net assets acquired	15,150
Goodwill arising from acquisition	(150)
Shares issued to shareholders upon acquisition	(6,000)
Cash paid	9,000
Expenses paid relating to acquisition	61
Less: Cash and bank balances	1,376
Cash flow on acquisition, net of cash acquired	7,685

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

The Group

The Company

	31/01/2003	31/01/2002	31/01/2003	31/01/2002
	$'000	$'000	$'000	$'000
Share Capital
Balance at beginning of period	86,768	85,943	86,768	85,943
Issuance of ordinary shares	2,922	234	2,922	234
Balance at end of period	89,690	86,177	89,690	86,177
Share Premium
Balance at beginning of period	79,818	79,372	79,818	79,372
Premium from issue of shares upon exercise of share options	58	125	58	125
Premium from issue of shares upon acquisition of subsidiary company	3,129	0	3,129	0
Share issue expense	(61)	0	(61)	0
Balance at end of period	82,944	79,497	82,944	79,497
Capital Reserve
Balance at beginning of period	2,147	9,911	0	7,764

Balance at end of period	2,147	9,911	0	7,764
Merger Reserve
Balance at beginning of period	0	0	25,036	25,036

Balance at end of period	0	0	25,036	25,036
Accumulated Losses
Balance at beginning of period	(12,101)	(37,853)	(31,172)	(43,624)
Payment of dividends	(3,498)	0	(3,498)	0
Profit for the period	10,068	8,613	(605)	(658)
Balance at end of period	(5,531)	(29,240)	(35,275)	(44,282)
Foreign Currency Translation Reserve
Balance at beginning of period	(14,296)	(12,297)	0	0
Exchange movement arising from translation of:
Share capital, capital reserves and revenue reserves/accumulated losses of subsidiary companies	(830)	769	0	0
Long term loans	(634)	761	0	0
Balance at end of period	(15,760)	(10,767)	0	0
Total Equity	153,490	135,578	162,395	154,192

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 or 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

During the financial period, the Company issued 520,000 ordinary shares of $0.10 each upon the exercise of options granted under the Uraco Share Option Scheme 2000.

As at 31 January 2003, there were unexercised options for 183,000 and 70,125,000 of unissued ordinary shares of $0.10 each under the Uraco Executives' Share Option Scheme and Uraco Share Option Scheme 2000 respectively.

In December 2002, the Company issued 28,708,133 ordinary shares of $0.10 each at $0.209 per share as part consideration for the acquisition of the entire share capital of Pacific Plastics Pte Ltd.

2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)

The figures have not been audited nor reviewed.

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

NA

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 financial statements for the current reporting period as compared to the audited financial statements as at 31 July 2002.

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

NA

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

31/01/2003

31/01/2002

Basic earnings per ordinary share

1.15 cts

1.00 cts

Diluted earnings per ordinary share

1.15 cts

1.00 cts

Basic earnings per ordinary share for the period is calculated based on the Group's profit attributable to the shareholders divided by the weighted average number of ordinary shares of 872,083,104 (31 January 2002 : 859,442,524).

Diluted earnings per ordinary share for the period is calculated based on the Group's profit attributable to the shareholders divided by the weighted average number of ordinary shares of 874,104,445 (31 January 2002 : 862,086,274) adjusted for the effects of dilutive options.

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 period reported on and (b) immediately preceding financial year

The Group

	31/01/2003	31/7/2002
Net asset value per ordinary share based on issued share capital of the Company	17.11 cts	16.40 cts

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss 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. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

Group's turnover for the first half year ended 31 January 2003 was $287.3 million, a decrease of 6.9% compared to a turnover of $308.6 million in the previous corresponding period. The decrease was mainly due to lower average selling prices of the products and services coupled with the strengthening of the Singapore dollar against the US dollar.

Despite the lower average selling prices, turnover for the Precision Engineering Division increased by 7.5% to $56.5 million. The Precision Engineering Division was able to achieve this because of its continuing focus on the improvement of product quality which resulted in increased customer confidence.

Turnover for the Contract Manufacturing Division decreased by 8.2% to $220.1 million. This was largely a combination of lower average selling prices of the products and services and lower orders due to the uncertain economic environment.

Despite a lower Group turnover, profit attributable to shareholders increased by 16.9% to $10.1 million mainly due to the continuous focus on cost efficiencies and productivity.

Fixed Assets in the Group increased by $18 million largely due to plant and machinery arising from the acquisition of Pacific Plastics Pte Ltd ("Pacific Plastics") which has operations in Suzhou and Nanjing and purchase of machinery for our operations in Malaysia and Thailand.

Bank balances and cash equivalents increased by $9.2 million to $52.3 million mainly due to timing differences in payments to Trade Creditors.

The current portion of Bank Borrowings increased by $5.2 million to $13.2 million mainly due to bank borrowings arising from the acquisition of Pacific Plastics.

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

The actual results of the Group are consistent with the prospect of the Group as disclosed in September 2002.

10. A commentary at the date of the announcement of the 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

The world economic recovery still remains uncertain. The Group's performance for the second half year may be affected by any major change in the political, economic and business environment. The Group's core businesses remain competitive and face constant lower average selling prices. However, the Group will continue to focus on cost efficiencies and strategic partnerships for growth and to maintain the Group competitiveness in this challenging environment.

11. Dividend

(a) Current Financial Period Reported On

Any dividend recommended 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? None

(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 or recommended for the current financial period.

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year

<Place tabular results and/or notes here>

14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments

15. A breakdown of sales

<Refer to Para 15 of Appendix 7.2 for the required details. Place tabular results and/or notes here>

16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)

	Latest Full Year ()	Previous Full Year ()
Ordinary
Preference	0	0
Total:

BY ORDER OF THE BOARD
Tay Peng Huat
Company Secretary
14/02/2003

Copyright © 2002. Beyonics Technology Limited. All rights reserved.