FINANCIAL
REVIEW (CONT’D)
14
SUNNINGDALE TECH LTD
ANNUAL REPORT 2014
FINANCIAL REVIEW (CONT’D)
The increase in deferred tax assets
was due to recognition of deferred
tax assets by one of the subsidiaries
in Malaysia.
The increase in inventory, trade and
other receivables, prepayment, cash
and short term deposits, trade and
other payables, loans and borrowings
and tax payable was mainly due to the
acquisition of SSH.
The increase in trade and other
receivables was also contributed by
delayed payments from 2 customers
where the amount of $3.5 million
was collected in January 2015. The
increase in loan and borrowings was
due to additional loans obtained for
the acquisition of SSH.
The Group ma i n t a i ned a cash
balance of $103.1 million as at
31 December 2014 (31 December
2013: $79.2 million), resulting in net
debt of $33.9 million (31 December
2013: net cash of $19.5 million).
Business Segments Performance
Revenue from the Automotive business
segment increased by 15.2% from
$105.5 million in FY2013 to $121.6
million (including $9.5 million from
SSH Group) in FY2014. The segment’s
contribution to Group revenue was
25.6% (FY2013: 22.2%). The increase
in profit was due to higher utilisation
in line with increase in orders.
Consumer/IT business segment, the
key revenue generator, decreased
by 6.3% from $225.0 million in
FY2013 to $210.9 million (including
$4.3 million from SSH Group) in
FY2014. The decrease was mainly
due to the cessation of operations
in Sweden. The segment accounted
for 44.3% of the Group’s revenue
in FY2014 as compared to 47.3%
in FY2013. Despite the decrease
in revenue, the profitability had
improved mainly due to (i) cutting
losses on the Sweden operation and
(ii) better utilisation in our Southern
China operations.
Revenue from the Healthcare business
segment increased by 9.0% from
$34.6 million in FY2013 to $37.7
million (including $0.7 million from
SSH Group) in FY2014. The increase
in profit was due to higher utilisation in
line with increase in orders.
Revenue from the Mould Fabrication
business segment decreased by 4.8%,
from $110.8 million in FY2013 to
$105.5 million (including $1.8 million
from SSH Group) in FY2014. This was
mainly due to lower orders billed and
recognised to profit and loss during
the year. This segment accounted
for 22.2% of the Group’s revenue
in FY2014, a drop from 23.3% in
FY2013. However, the profit had
improved due to a lower loss incurred
in Southern China operations and
better absorption in other operations.
Geographic Segments Performance
During the financial year, the Group
started a new manufacturing facility in
Brazil and acquired the SSH Group.
As a consequence the Group now
has manufacturing facilities in 8
countries - Singapore, Malaysia, China,
Mexico, Latvia, Indonesia, Brazil and
India. In November 2014, the Group
incorporated a company in Thailand,
and expect to start operations
in 2015.
Operations in China and Hong Kong,
which contributed the bulk of Group
revenue in past years, increased
from 38.9% to 44.6%. The revenue
increase from $185.0 million in FY2013
to $212.2 million in FY2014 was
mainly due to new projects launched
and increased orders for parts from
Au t omo t i ve , Consume r / I T and
Healthcare business segments.
The contribution from Singapore
and Malaysia operations decreased
from 43.7% in FY2013 to 40.8%
in FY2014. In absolute figures, the
revenue decreased from $208.1 million
in FY2013 to $194.1 million in FY2014.
This was mainly due to a decrease
in orders as well as a contract with
a customer being transferred to
China for the Consumer/IT business
segment and partially offset by an
increase in orders from Automotive
and Healthcare business segments.
Revenue contribution from the Group’s
operations in other regions decreased
from 17.4% in FY2013 to 14.6% in
FY2014. The decrease was mainly due
to the shutdown of Sweden operation.
