First Quarter 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 31/10/2003 S$'000 GROUP 31/10/2002 S$'000 CHANGE % Revenue 262,770 142,069 85.0 Cost of sales (247,329) (130,550) 89.5 Gross profit 15,441 11,519 34.0 Other Income 171 154 11.0 15,612 11,673 33.7 General and administrative costs (6,842) (4,537) 50.8 Selling and marketing expenses (707) (381) 85.6 Profit from operating activities 8,063 6,755 19.4 Finance costs (575) (150) 283.3 Profit before taxation and minority interests 7,488 6,605 13.4 Taxation (667) (1,124) (40.7) Profit after taxation 6,821 5,481 24.4 Minority interests 65 27 140.7 Profit attributable to shareholders 6,886 5,508 25.0 Additional information for the income statement 31/10/2003 S$'000 31/10/2002 S$'000 Depreciation and amortisation (6,767) (3,577) Interest on borrowings (575) (150) Foreign exchange (loss)/gain (72) 609 Provision for doubtful debts (435) (442) Provision for stock obsolescence (560) (427)
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 31/10/2003 S$'000 GROUP 31/7/2003 S$'000 COMPANY 31/10/2003 S$'000 COMPANY 31/7/2003 S$'000 Non-Current Assets Fixed Assets 172,363 181,358 - - Subsidiary companies - - 153,114 153,114 Long-term investments 780 786 11 11 Investment properties 7,842 7,954 - - Intangible assets 15,031 13,101 - - 196,016 203,199 153,125 153,125 Current Assets Stocks 55,635 46,296 - - Trade debtors 127,382 131,383 - - Other debtors 15,017 13,848 28 20 Amount due from subsidiary companies - - 116,604 90,722 Short-term investments 99 86 99 86 Fixed deposits 499 1,383 - - Cash and bank balances 46,605 57,525 719 650 245,237 250,521 117,450 91,478 Current Liabilities Trade creditors 134,169 146,884 - - Other creditors and accruals 27,856 28,829 627 731 Amount due to subsidiary companies - - 11,941 13,269 Hire purchase creditors 2,163 2,477 - - Provision for taxation 5,540 5,763 126 142 Bank borrowings 38,111 42,195 27,038 - 207,839 226,148 39,732 14,142 Net Current Assets 37,398 24,373 77,718 77,336 Non-Current Liabilities Hire purchase creditors 1,846 2,335 - - Long-term loan 8,600 8,600 8,600 8,600 Deferred taxation 3,592 3,063 - - 14,038 13,998 8,600 8,600 Net Assets 219,376 213,574 222,243 221,861 Capital and Reserves Share capital 114,008 113,638 114,008 113,638 Share premium 113,691 113,454 113,691 113,454 Capital reserves 7,369 7,369 - - Merger reserve - - 25,036 25,036 Accumulated losses (5,032) (11,918) (30,492) (30,267) Foreign currency translation reserve (15,995) (14,371) - - 214,041 208,172 222,243 221,861 Minority interests 5,335 5,402 - - Total Equity 219,376 213,574 222,243 221,861
1(b)(ii)	Aggregate amount of group's borrowings and debt securities
	As at 31/10/2003 As at 31/7/2003 Secured Unsecured Secured Unsecured S$'000 6,984 S$'000 33,290 S$'000 44,672 S$'000 - Amount repayable after one year As at 31/10/2003 As at 31/7/2003 Secured Unsecured Secured Unsecured S$'000 1,846 S$'000 8,600 S$'000 2,335 S$'000 8,600 Details of any collateral As at 31 October 2003, the Group's secured borrowings comprised the following: a. S$4.8 million bank loans which are secured by the mortgages of leasehold land and plant and machinery of a subsidiary company, Pacific Plastics (Suzhou) Limited; and b. outstanding hire purchase balances.
1(c)	A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year
	GROUP 31/10/2003 S$'000 GROUP 31/10/2002 S$'000 Cash flow from operating activities:- Profit before taxation and minority interests 7,488 6,605 Adjustments for: Depreciation of fixed assets 6,595 3,567 (Writeback)/provision for impairment in value of quoted investments (13) 16 Amortisation of goodwill 172 10 Gain on sale of fixed assets (43) (10) Interest expenses 575 150 Interest income (12) (48) Currency re-alignment 6 316 Operating profit before working capital changes 14,768 10,606 (Increase)/decrease in stocks (9,339) 5,693 Decrease/(increase) in trade debtors 4,001 (8,451) Increase in other debtors (1,169) (6,617) Decrease in trade creditors (12,715) (15,984) (Decrease)/increase in other creditors and accruals (973) 17,311 Cash (used in) / generated from operations (5,427) 2,558 Interest paid (575) (150) Interest income 12 48 Taxation paid (361) (986) Net cash (used in) / provided from operations (6,351) 1,470 Cash flows from investing activities:- Purchase of fixed assets (1,680) (5,960) Proceeds from sale of fixed assets 506 38 Net cash used in investing activities (1,174) (5,922) Cash flows from financing activities:- Payment of hire purchase creditors (803) (144) Repayment of bank borrowings (4,084) - Proceeds from the exercise of share options 608 110 Net cash used in financing activities (4,279) (34) Net decrease in cash and cash equivalents (11,804) (4,486) Cash and cash equivalents at beginning of period 58,633 42,220 Cash and cash equivalents at end of the period 46,829 37,734 Cash and cash equivalents comprise the following balance sheet amounts :- Fixed Deposits 499 872 Cash and bank balances 46,605 37,711 47,104 38,583 Less: Pledged fixed deposits (275) (849) 46,829 37,734
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 31/10/2003 S$'000 GROUP 31/10/2002 S$'000 COMPANY 31/10/2003 S$'000 COMPANY 31/10/2002 S$'000 Share Capital Balance at beginning of the period 113,638 86,768 113,638 86,768 Issuance of ordinary shares during the period 370 52 370 52 Balance at end of the period 114,008 86,820 114,008 86,820 Share premium Balance at beginning of the period 113,454 79,818 113,454 79,818 Premium from issue of ordinary shares upon exercise of share options 237 59 237 59 Balance at end of the period 113,691 79,877 113,691 79,877 Capital reserves Balance at beginning of the period 7,369 2,147 - - Effect of prior year adjustments - 6,276 - - Balance at beginning of the period, restated 7,369 8,423 - - Balance at end of the period 7,369 8,423 - - Merger reserves Balance at beginning and end of period - - 25,036 25,036 Accumulated losses Balance at beginning of the period (11,918) (12,101) (30,267) (31,172) Effect of prior year adjustments - (7,388) - - Balance at beginning of the period, restated (11,918) (19,489) - - Profit / (loss) for the period 6,886 5,508 (225) (215) Balance at end of the period (5,032) (13,981) (30,492) (31,387) Foreign currency translation reserve Balance at beginning of the period (14,371) (14,296) - - Exchange movement arising from translation of: share capital, capital reserves and revenue reserve/accumulated losses of subsidiary companies (1,103) 465 - - long term intercompany loan (521) 340 - - Balance at end of the period (15,995) (13,491) - - Total Equity 214,041 147,648 222,243 160,346
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 3,702,000 ordinary shares of S$0.10 each upon the exercise of options granted under the Beyonics Share Option Scheme 2000. As at 31 October 2003, there were unexercised options for 183,000 and 76,708,000 of ordinary shares of S$0.10 each under the Uraco Executive'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
	31/10/2003    31/10/2002 Basic earnings per ordinary share 0.61 cents    0.63 cents Diluted earnings per ordinary share 0.60 cents    0.63 cents
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
	31/10/2003    31/7/2003 Net asset value per ordinary share 18.8 cents    18.3 cents
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
	For the quarter under review, revenue, costs and operating expenses increased significantly as compared to the previous year's corresponding quarter due to the acquisition of two groups of companies; namely the Pacific Plastics Group in December 2002 and the Flairis Group in July 2003. The revenue contribution from these two groups resulted in the increase in sales revenue for the Contract Manufacturing Division by 112.6% to S$229.8 million. Sales revenue for the Precision Engineering Division increased by 17.0% to S$32.0 million largely due to a full quarter revenue contribution from the Thailand Precision Engineering operations which commenced operations in December 2002. Profit from operating activities increased by 19.4% to S$8.1 million. However, profit from operating activities as a percentage of sales revenue decreased to 3.1% from 4.8% largely due to lower margins from the assembly operations of the Flairis Group. Finance costs increased by 283.3% to S$0.6 million due to interest expenses on bank debts of the Flairis Group now assumed by Beyonics. Taxation decreased by 40.7% to S$0.7 million despite the increase in profit from operating activities. This was mainly due to utilization of investment allowances by certain subsidiaries in the Flairis Group. The above factors resulted in an increase of 25.0% in profits attributable to shareholders to S$6.9 million for the quarter under review. Despite the improvement in earnings, basic earnings per ordinary share ("EPS") decreased to 0.61 cents from 0.63 cents in the previous year's corresponding quarter largely due to the increased number of outstanding shares arising from shares issued for the Pacific Plastics acquisition and the Flairis merger. Fixed Assets decreased by S$9.0 million largely due to normal depreciation and impairment loss on Flairis' plant and machinery which existed at the date of acquisition. This impairment loss does not relate to specific events or changes in circumstances occurring after the date of acquisition. In accordance with Financial Reporting Standard 22 "Business Combinations", such impairment loss is adjusted to goodwill. The level of stocks increased by S$9.3 million mainly due to setting up of hub operations services for several of our customers. Cash and bank balances decreased by S$10.9 million mainly due to S$4.1 million repayment of bank borrowings, S$12.7 million decrease in Trade Creditors and partly offset by a S$4.0 million decrease in Trade Debtors. The S$12.7 million decrease in Trade Creditors was largely due to payments made to certain of our vendors prior to closing of the quarter under review.
9.	Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results
	Not applicable
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 economy is beginning to show signs of improvement. However, the Group's operating environment remains challenging with cautious business spending coupled with constant threat of a recurrence of SARS or terrorist activities. In July 2003, Beyonics completed its merger with Flairis. This merger enables Beyonics to broaden its customer base to include the Japanese OEM market as well as opening up opportunities for the Group to provide electronics manufacturing services ("EMS") for a wide range of Japanese consumer electronics products. With this merger, Beyonics has become a fully integrated and cost-effective mid-sized EMS provider with multi-manufacturing sites in the Asia Pacific region. The wide range of manufacturing capabilities will also enable Beyonics to cross-sell to our existing customers as well as to attract new customers. With these initiatives and development coupled with continuing focus on cost efficiencies, productivity and strategic partnerships, the Directors remains cautiously optimistic that Beyonics 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? 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
	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
	Not applicable
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
	Not applicable
15.	A breakdown of sales
	Not applicable
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 (S$'000) Previous Full Year (S$'000) Ordinary 0 0 Preference 0 0 Total: 0 0
BY ORDER OF THE BOARD Tay Peng Huat Company Secretary 18/12/2003