FINANCIAL
REVIEW
12
SUNNINGDALE TECH LTD
ANNUAL REPORT 2014
FINANCIAL REVIEW
Review Of Financial Performance
The Group completed the acquisition
of Sunningdale Singapore Holdings
Pte Ltd (“SSH”) (formerly known
as Anchorage Singapore Holdings
Pte Ltd) and its subsidiaries (“SSH
Group”) in November 2014.
The financial results for financial
year ended 31 December 2014
include one month of results of the
SSH Group.
The Group’s revenue decreased
marginally by 0.1% from $476.0
million in FY2013 to $475.6 million in
FY2014. Excluding the contribution
from the SSH Group, the revenue
would be $459.3 million, a decrease
of 3.5%.
The decrease in revenue was mainly
f rom Consume r / I T and Mou l d
Fabrication business segments,
partially offset by the increase in
revenue for Automotive and Healthcare
business segments.
The increase in revenue from the
Automotive and Healthcare business
segmen t s by 15 . 2% and 9 . 0%
respectively was due to increased
orders from current and new projects.
acqu i s i t i on e xpens e s , f o r e i gn
exchange gain and gain on disposal
of non-current assets held for sales,
the net profit would have been $21.5
million in FY2014 and $13.3 million
in FY2013. The contribution from the
SSH Group including share of results
of a joint venture was $0.6 million.
The earning per share was 3.30 cents
for FY2014 compared to 1.80 cents
for FY2013.
Net asset value per share decreased
from 33.03 cents as at 31 December
2013 t o 32 . 92 cen t s as a t 31
December 2014. Net tangible asset
per share also decreased from 31.32
cents as at 31 December 2013 to
30.92 cents as at 31 December 2014.
Financial Position
And Cashflows
The Group’s property, plant and
equipment amounted to $193.6 million
as at 31 December 2014 compared
to $136.3 million as at 31 December
2013. The increase in property, plant
and equipment was mainly due to (i)
the addition of $14.5 million in capital
expenditure for machineries and the
setup of the new factory in Brazil and
expansion in Tianjin and (ii) addition
of $65.8 million due to the acquisition
of the SSH Group, and partially offset
by depreciation charges of $24.1
million (FY2013: $25.9 million), write
back of impairment loss of $0.2
million (FY2013: impairment loss of
$1.5 million), write offs of $0.3 million
(FY2013: $0.2 million).
The increase in intangible assets
was due to the acquisition of the
SSH Group.
The decrease in revenue from the
Consumer/IT business segment was
due to the cessation of our operations
in Sweden at the end of January 2014.
The decrease in revenue from Mould
Fabrication was mainly due to lower
orders billed and recognised to profit
and loss during the year.
The Group recorded gross profit of
$59.9 million in FY2014, an increase
of 8.2% from $55.4 in FY2013.
Gross margin improved from 11.6%
in FY2013 to 12.6% in FY2014.
Excluding the contribution from the
SSH Group, the gross profit would
be $57.8 million and gross margin
of 12.6%.
The increase in other income was
mainly due to (i) foreign exchange
ga i n of $1.4 mi l l i on i n FY2014
compared to $0.3 million in FY2013,
(ii) net profit on disposal of non-current
assets held for sale amounting to
$5.2 million in FY2014, and (iii) a
provisional negative goodwill of $4.5
million arising from the acquisition
of the SSH Group.
The i ncrease i n mar ke t i ng and
distribution expenses came from
(i) an increase in staff costs and (ii) an
amount of $0.3 million contributed
by the SSH Group.
The i nc rease i n Admi n i s t r a t i ve
expenses in FY2014 compared
to FY2013 was mainly due to (i)
acquisition expenses of $4.9 million
in respect of the acquisition of the
SSH Group and (ii) an amount of
$1.4 million contributed by the
SSH Group.
The Group achieved a net profit of
$27.7 million in FY2014 compared
to $13.6 million in FY2013. Excluding
the provisional negative goodwill,
