Full Year Financial Statement And Dividend 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 GROUP 31/7/2003 31/7/2002 CHANGE S$'000 S$'000 % Revenue 554,774 615,174 (9.8) Cost of sales (509,441) (564,689) (9.8) Gross profit 45,333 50,485 (10.2) Other Income - including interest income 898 725 23.9 46,231 51,210 (9.7) General & administrative costs (20,279) (26,669) (24.0) Selling & marketing expenses (1,445) (1,469) (1.6) Profit from operating activities 24,507 23,072 6.2 Finance costs (764) (994) (23.1) Exceptional item (10,001) 0 nm Share of loss of associated companies 0 (64) (100.0) Profit before taxation and minority interests 13,742 22,014 (37.6) Taxation (2,761) (4,188) (34.1) Profit after taxation 10,981 17,826 (38.4) Minority interests 88 162 (45.7) Profit attributable to shareholders 11,069 17,988 (38.5) nm - not meaningful Additional information for the income statement : 31/7/2003 31/7/2002 S$'000 S$'000 Depreciation and amortisation (16,037) (14,600) Interest on borrowings (764) (994) Foreign exchange gain/(loss) 177 (836) Goodwill written off (10,001) - Provision for doubtful debts (1,039) (4,187) Provision for stock obsolescence (1,224) (2,469) Revaluation deficit on fixed assets (560) - Fixed assets written off 389 646 Over/(under) provision of taxation in prior years 375 (610) 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 GROUP COMPANY COMPANY 31/7/2003 31/7/2002 31/7/2003 31/7/2002 S$'000 S$'000 S$'000 S$'000 Non Current Assets Fixed assets 181,358 92,554 - 20 Subsidiary companies - - 153,114 93,848 Investment properties 7,954 8,888 - - Long term investments 786 582 11 11 Interest in joint venture - 53 - 53 Intangible assets 13,101 195 - - 203,199 102,272 153,125 93,932 Current Assets Stocks 46,296 34,749 - - Trade debtors 131,383 102,136 - - Other debtors 13,848 10,607 20 26 Amount due from subsidiaries - - 90,722 88,350 Short term investments 86 96 86 96 Fixed deposits 1,383 7,901 - - Cash and bank balances 57,525 35,168 650 1,512 250,521 190,657 91,478 89,984 Current Liabilities Trade creditors 146,884 101,674 - - Other creditors and accruals 28,829 21,600 731 587 Amount due to subsidiaries - - 13,269 9,136 Hire purchase creditors 2,477 474 - - Provision for taxation 5,763 7,560 142 143 Bank borrowings 42,195 8,000 - 5,000 226,148 139,308 14,142 14,866 NET CURRENT ASSETS 24,373 51,349 77,336 75,118 Non-Current Liabilities Hire purchase creditors 2,335 559 - - Long term loan 8,600 8,600 8,600 8,600 Deferred taxation 3,063 2,986 - - 13,998 12,145 8,600 8,600 NET ASSETS 213,574 141,476 221,861 160,450 CAPITAL AND RESERVES Share capital 113,638 86,768 113,638 86,768 Share premium 113,454 79,818 113,454 79,818 Capital reserve 7,369 8,423 - - Merger reserve - - 25,036 25,036 Accumulated losses (11,918) (19,489) (30,267) (31,172) Foreign currency translation reserve (14,371) (14,296) - - 208,172 141,224 221,861 160,450 Minority interests 5,402 252 - - TOTAL EQUITY 213,574 141,476 221,861 160,450   1(b)(ii) Aggregate amount of group's borrowings and debt securities Amount repayable in one year or less, or on demand As at 31/7/2003 As at 31/1/2003 Secured Unsecured Secured Unsecured S$'000 44,672 S$'000 - S$'000 5,449 S$'000 8,000 Amount repayable after one year As at 31/7/2003 As at 31/1/2003 Secured Unsecured Secured Unsecured S$'000 2,335 S$'000 8,600 S$'000 550 S$'000 8,600 Details of any collateral As at 31 July 2003, the Group's borrowings and debts securities are secured by the following:- 1. mortgages of leasehold land and plant and machinery of Pacific Plastics (Suzhou) Limited. 2. fixed and floating charge over certain assets of Flairis Technology Corporation Limited and its subsidiaries ("Flairis") including land and building, plant and machinery, factory equipment, motor vehicles, inventories, trade and other receivables and cash and cash equivalents. Subsequent to 31 July 2003, the Company has fully repaid all Flairis' transferable term loan facility of US$9.6 million, long term loan of RM9.5 million and short term loan of S$8.2 million using the Company's banking facilities. The banking facilities used by the Company to repay these Flairis' borrowings are unsecured. 1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year GROUP GROUP 31/7/2003 31/7/2002 S$'000 S$/000 Cash flows from operating activities: Profit before taxation and minority interests 13,742 22,014 Adjustments for: Share of loss of associated companies - 64 Depreciation of fixed assets 16,002 14,540 Amortisation of preliminary and pre-operating expenses - 50 Amortisation of goodwill 35 10 Goodwill written off 10,001 - Provision for diminution in value of quoted investments 10 51 (Gain)/loss on sale of fixed assets (74) 148 Fixed assets written off 389 646 Revaluation deficit on fixed assets 560 - Interest expenses 764 994 Interest income (109) (108) Currency re-alignment (75) (1,510) Operating profit before working capital changes 41,245 36,899 Decrease/(increase) in stocks 15,286 (4,499) Decrease/(increase) in trade debtors 16,974 (20,952) Decrease/(increase) in other debtors 4 (706) (Decrease)/increase in trade creditors (13,448) 39,441 (Decrease)/increase in other creditors and accruals (3,247) 11,580 Cash generated from operations 56,814 61,763 Interest paid (764) (994) Interest received 109 108 Tax paid (3,644) (1,578) Net cash provided from operating activities 52,515 59,299 Cash flows from investing activities: Proceeds from sale of fixed assets 3,119 759 Purchase of fixed assets (25,757) (19,888) Payment for investment in joint venture - (53) Payment for long term investments (142) (481) Cash flow on acquisition, net of cash acquired (2,454) - Net cash used in investing activities (25,234) (19,663) Cash flows from financing activities: Payment of hire purchase obligations (778) (482) Proceeds from term loans - 8,600 Proceeds from exercise of share options and warrants 834 1,271 Repayment of bank borrowings (8,000) (22,898) Payment of dividend (3,498) - Net cash used in financing activities (11,442) (13,509) Net increase in cash and cash equivalents 15,839 26,127 Cash and cash equivalents at beginning of year 43,069 16,942 Cash and cash equivalents at end of the year 58,908 43,069   The acquisitions of subsidiaries, Beyonics China (Holdings) Pte Ltd, (formerly known as Pacific Plastics Pte Ltd) and Flairis Technology Corporation Limited have been shown in the cash flow statement as a single item. The effect on the individual assets and liabilities is set out below: S$'000 Fixed assets 83,101 Intangible assets 34 Long term investments 62 Cash and bank balances 7,089 Stocks 26,833 Trade debtors 46,221 Other debtors 4,926 Trade creditors (58,658) Other creditors (10,476) Hire purchase creditors (4,557) Bank borrowings (42,106) Provision for taxation (35) Deferred taxation (926) Minority interests (5,201) Net assets acquired 46,307 Consideration settled by issue of shares 60,042 Consideration settled by cash 9,173 Goodwill arising from acquisitions (22,908) Net cash flow is represented by: Cash consideration paid 9,173 Expenses paid relating to acquisitions 370 Less cash and bank balances (7,089) Cash flows on acquisition, net of cash acquired 2,454 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 GROUP GROUP COMPANY COMPANY 31/7/2003 31/7/2002 31/7/2003 31/7/2002 S$'000 S$'000 S$'000 S$'000 SHARE CAPITAL Balance at beginning of year 86,768 85,943 86,768 85,943 Issuance of ordinary shares during the year 26,870 825 26,870 825 Balance at end of year 113,638 86,768 113,638 86,768 SHARE PREMIUM Balance at beginning of year 79,818 79,372 79,818 79,372 Premium from issue of shares upon exercise of share options 331 436 331 436 Premium from issue of shares upon exercise of warrants - 10 - 10 Premium from issuance of ordinary shares 33,675 - 33,675 - Share issue expenses (370) - (370) - Balance at end of year 113,454 79,818 113,454 79,818 CAPITAL RESERVE Balance at beginning of year 2,147 9,911 - 7,764 Effect of prior year adjustments 6,276 6,276 - - Restated balance 8,423 16,187 - 7,764 Transfer to accumulated losses upon expiry of warrants - (7,764) - (7,764) Deficit on revaluation of freehold land (1,171) - - - Reversal of deferred taxation on surplus in revaluation 117 - - - Balance at end of year 7,369 8,423 - - MERGER RESERVE Balance at beginning of year - - 25,036 25,036 Balance at end of year - - 25,036 25,036 ACCUMULATED LOSSES Balance at beginning of year (12,101) (37,853) (31,172) (43,624) Effect of prior year adjustments (7,388) (7,388) - - Restated balance (19,489) (45,241) (31,172) (43,624) Transfer from capital reserves upon expiry of warrants - 7,764 - 7,764 Payment of dividend (3,498) - (3,498) - Profit for the year 11,069 17,988 4,403 4,688 Balance at end of year (11,918) (19,489) (30,267) (31,172) FOREIGN CURRENCY TRANSLATION RESERVES Balance at beginning of year (14,296) (12,297) - - Exchange movement arising from translation of:- Share capital, capital reserves and revenue reserve/accumulated losses of subsidiary companies 120 (1,227) - - Long term loans (195) (772) - - Balance at end of year (14,371) (14,296) - - TOTAL EQUITY 208,172 141,224 221,861 160,450 The Group's prior year comparative figures have been restated largely due to prior year adjustments to reverse goodwill which was erroneously charged against capital reserve instead of revenue reserve on acquisition of a subsidiary company in the financial year ended 31 July 1997. 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 year, the Company issued 5,035,000 ordinary shares of S$0.10 each upon the exercise of options granted under the Beyonics Share Option Scheme 2000. In December 2002, the Company issued 28,708,133 ordinary shares of S$0.10 each at S$0.209 per share as part consideration for the acquisition of the entire share capital of Pacific Plastics Pte Ltd, now known as Beyonics China (Holdings) Pte Ltd. In July 2003, the Company issued 234,965,764 ordinary shares of S$0.10 each at S$0.23 per share as consideration in connection with the merger with Flairis Technology Corporation Limited. As at 31 July 2003, there were unexercised options for 183,000 and 70,340,000 of ordinary shares of S$0.10 each under the Uraco Executives's Share Option Scheme and Beyonics Share Option Scheme 2000 respectively. 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 reviewed nor audited. 3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of 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 method of computation for the current reporting period as those in the audited financial statements in the previous financial year. 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 Not applicable 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   31/7/2003   31/7/2002 Basic earnings per ordinary share 1.24 cts   2.08 cts Diluted earnings per ordinary share 1.23 cts   2.08 cts Basic earnings per ordinary share is calculated based on the Group's profit attributable to the shareholders divided by the weighted average number of ordinary shares of 891,588,402 (2002 : 863,064,589).  Basic earnings per ordinary share, if there was no write down of goodwill of S$10.0 million, would have been 2.36 cents. Diluted earnings per ordinary share is calculated based on the Group's profit attributable to the shareholders divided by the weighted average number of ordinary shares of 902,603,201 (2002 : 866,791,783) 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     31/7/2003   31/7/2002 Net assets value per ordinary share based on issued share capital of the Company   18.3 cts   16.3 cts No of ordinary shares ('000)   1,136,385   867,676 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 revenue for the financial year ended 31 July 2003 was S$554.8 million, a decrease of 9.8% compared to revenue of S$615.2 million in the previous financial year. The decrease was mainly due to lower average material prices and electronics products prices, and to a lesser extent, the slower business environment due to the Iraqi conflict, terrrorist activities in South East Asia and the outbreak of severe acute respiratory syndrome ("SARS").  Sales revenue for the Precision Engineering Division increased by 9.7% to S$125.2 million. The Precision Engineering Division was able to achieve this higher sales revenue because of higher production as our Thailand plant commenced operations in December 2002. Sales revenue for the Contract Manufacturing Division decreased by 12.6% to S$411.9 million. This was largely due to the reasons set out in the first paragraph of this section. Profit from operating activities increased by 6.2% to S$24.5 million from S$23.1 million in the previous financial year. The increase was mainly due to better operational efficiencies. Profit attributable to shareholders decreased by 38.5% to S$11.1 million due to a one-time write down of goodwill of S$10.0 million resulting from the application of Statement of Accounting Standard 22 ("SAS 22", now known as Financial Reporting Standard 22). The Company had made an announcement regarding this write down of goodwill of S$10.0 million on 25 August 2003. Excluding this one-time write down of goodwill of S$10.0 million, profit attributable to shareholders would have increased by 17.1% to S$21.1 million. Basic earnings per ordinary share, if there was no write down of goodwill of S$10.0 million, would have been 2.36 cents compared to 2.08 cents in the previous financial year. The Group consolidated balance sheet as at 31 July 2003 includes the balance sheet of Flairis Technology Corporation Limited and its subsidiaries ("Flairis"). The Group did not consolidated the profit and loss statement of Flairis for the financial year ended 31 July 2003 as the merger was only completed towards the end of July 2003. Fixed Assets in the Group increased by S$88.8 million largely due to fixed assets (S$14.5 million) acquired through the acquisition of Beyonics China (Holdings) Pte Ltd which has operations in Suzhou and Nanjing, purchase of machineries (S$14.4 million) for our Malaysia and Thailand operations and fixed assets (S$68.6 million) acquired through the recent merger with Flairis. Stocks increased by S$11.5 million to S$46.3 million. Trade Debtors increased by S$29.2 million to S$131.4 million. These increases were largely due to consolidation of stocks of $23.2 million and trade debtors of S$40.1 million of Flairis, partially offset by better management of inventories and collection by the Beyonics Group. Similarly, Trade Creditors, Other Creditors and Accruals increased by S$52.4 million to S$175.7 million largely due to the consolidation of trade creditors, other creditors and accruals of S$63.3 million from Flairis. Total Fixed Deposits and Cash and Bank balances increased by S$15.8 million to S$58.9 million mainly due to improvement in cash management and the consolidation of S$5.7 million of cash from Flairis. Bank Borrowings and Long Term Loans increased by S$34.2 million to S$50.8 million mainly due to bank debts acquired through the merger with Flairis and the acquisition of Beyonics China and offset by repayment of S$8.0 million of the Group's bank borrowings. Taking into account the bank debts of Flairis and Beyonics China, the Group has a net cash balance of S$8.1 million as at 31 July 2003. Intangible assets increased by S$12.9 million to S$13.1 million as a result of goodwill from the merger with Flairis. 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 July 2003. 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 During the financial year, there was an outbreak of hostilities in Iraq and SARS, and terrorist attacks in the region. The threat of a recurrence of SARS or terrorist activities remains real. Such events do have an impact on the operations of the Group's customers and the demand for their end products and consequently impact the performance of the Group. In addition, the world economic recovery remains uncertain and the Group's operating environment remains competitive. During the year, the Group set up operations in Thailand for its Precision Engineering Division and acquired established plastics injection molding operations in China to strengthen its plastics injection molding capabilities. It also merged with Flairis with the expectation of significant synergistic benefits through increased scale, customer and product diversification, expansion of multi low cost manufacturing sites, better utilization of resources and enhanced operating and financial resources. The Directors are cautiously optimistic that with these initatives and development coupled with the Group's close customer relationships, established reputation as a high quality contract manufacturer, stronger financial position and continuing focus on cost efficiencies, productivity and strategic partnerships for growth, the Group is well positioned to face the challenges ahead.   11. Dividend (a) Current Financial Period Reported On Any dividend declared for the current financial period reported on? Yes Name of Dividend First & Final     Dividend Type Cash     Dividend Rate 4 % per ordinary share (less tax)     Par value of shares S$0.10     Tax Rate 22%     (b) Corresponding Period of the Immediately Preceding Financial Year Any dividend declared for the corresponding period of the immediately preceding financial year? Yes Name of Dividend First & Final     Dividend Type Cash     Dividend Rate 5 % per ordinary share (less tax)     Par value of shares S$0.10     Tax Rate 22%     (c) Date payable The dividend payment will be announced at a later date. (d) Books closure date Notice on the closure of the Share Transfer Books and Register of Members of the company to determine shareholders' entitlement to the recommended first and final dividend will be announced later. 12. If no dividend has been declared/recommended, a statement to that effect Not Applicable PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT (This part is not applicable to Q1, Q2, Q3 or Half Year Results)  13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year By Business Segments Precision Engineering Contract Manufacturing Distribution Others Elimination Consolidation 2003 S$'000 2002 S$'000 2003 S$'000 2002 S$'000 2003 S$'000 2002 S$'000 2003 S$'000 2002 S$'000 2003 S$'000 2002 S$'000 2003 S$'000 2002 S$'000 Segment Revenue