It is my pleasure to present to you our annual report for the financial year ended 31 December 2013.
I am pleased to report that the Group has achieved a 11% revenue increase to S$23.7 million and recorded a net profit attributable to the equity holders of the Company of S$2.5 million in 2013. This has been achieved through improvements in our operational efficiency amidst a very challenging environment.
During the year, we focused on developing our barging revenue base. Revenue from the shipping segment, which accounted for more than 90% of Group’s revenue, increased by 11% to S$23.6 million. This improvement was driven by improved fleet utilisation and better control over fuel distribution and consumption.
Cash and bank deposits remain healthy at S$78.4 million as at 31 December 2013. The financial position of the Group was further strengthened with an increase in its net asset value by S$33.0 million.
Our property development in Ningbo, China, through our subsidiary Manhattan Resources (Ningbo) Property Limited (“MRN”), continued to progress well, with the equity transfer and claims by the Chinese partners being settled in FY2013. We have commemorated the ground breaking ceremony in November 2013 and the building design for this mixed commercial development is currently under way.
Instability in coal prices has contributed to the volatilities in the coal supply/demand situation for our customers, potentially affecting the Group’s barging activities in 2014. Nevertheless, the Group shall remain focused in optimising operational efficiency and cost effectiveness amidst these difficult operating and economic environment.
Notwithstanding the uncertain industry outlook, the Group continues to actively pursue growth opportunities and enhance business scope through organic growth and strategic acquisitions so as to achieve long term sustainable growth. The Group is currently in preliminary discussions with certain parties on potential business opportunities, involving strategic investments in the mining, energy and healthcare sectors. However, the Company wishes to emphasize that such discussions are only preliminary and nothing definitive has been reached at this juncture. The Company will make relevant announcements when any of these opportunities crystalises.
The difficult and challenging operating environment encountered during the year has also taken its toll on our
Board membership. Amongst the Board changes during the year, we wish to record the departure of Independent Director, Mr Chew Eng Soo in March 2014, and the imminent departure of Mr Hirochika Shinohara, whose tenure is due for renewal at this forthcoming AGM, but has gracefully declined renomination.
The Board has reluctantly accepted their departures, and is currently actively evaluating suitable replacements to fill the vacated positions.
On behalf of the Board, I would like to express my gratitude to Mr Chew and Mr Shinohara for their valuable service given while in office, and wish them well in their future endeavour.
Finally, I would like to express the Group’s gratitude to all our business partners, our employees, and not least our loyal shareholders.
We look forward to receiving your continued support through the coming years to enable us to achieve our ultimate vision to deliver sustainable value for all stakeholders.
Liow Keng Teck
31 March 2014