Dear Shareholders,
The twelve-month period ended
31 December 2014 (“FY2014”) was
a challenging year for the Group as
there were several events happening.
We set up operations in Brazil. We
shut down our operations in Sweden.
We made a major acquisition, of
Sunningdale Singapore Holdings
Pte Ltd (“SSH”) (formerly known
as Anchorage Singapore Holdings
Pte Ltd) and its subsidiaries (“SSH
Group”), together better known as
the First Engineering Group. We
initiated towards the end of the year
the start of our operations in Thailand.
CHAIRMAN’S
MESSAGE
02
SUNNINGDALE TECH LTD
ANNUAL REPORT 2014
CHAIRMAN’S MESSAGE
In addition, the disposal of the building
owned by UFE in February 2014,
resulted in a gain on disposal of non-
current asset of $5.2 million, also
recognized under other income.
The Group recorded a net profit of
$27.7 million compared to $13.6
million in FY2013. Without the
negative goodwill, gain on disposal
of non-current assets held for sales,
foreign exchange gain of $1.4
million and acquisition expenses of
$4.9 million, the recorded net profit
would have been $21.5 million.
The Group ma i n t a i ned a cash
balance of $103.1 million as at 31
December 2014 compared to $79.2
million as at 31 December 2013.
Net debt was $33.9 million as the
acquisition of the SSH Group was
paid for entirely in cash, funded by
internal cashflow and a loan from
a bank. The Group also took over
the loans and borrowings of the
SSH Group.
On behalf of the Board, it is our
pleasure to announce that a final
dividend of 0.8 cents per ordinary
share has been recommended
by the Board for shareholders’
approval at the forthcoming Annual
General Meeting.
Outlook
Although the US economic recovery,
strengthening of the US dollar and
decrease of oil price have positive
impact on the Group’s business,
these factors are offset by Europe’s
slow economic recovery, weakening
of the Euro, China’s continuing
wage increases and slowdown in
consumer demand.
KOH BOON HWEE
Chairman
April 2015
Setting up the operations in Brazil
and Thailand is part of our organic
growth plan. We are expanding our
geographic footprint to serve our
customers. Our first shipment in
Brazil was made in November 2014.
The Thailand operation expects to
bring in the first batch of machines
in March/April 2015.
The acquisition of the SSH Group
made the Group one of the largest
precision plastic companies in this
region. It also expanded our customer
base, widened our product mix
offering, increased our capabilities
and expanded our geograph i c
footprint into India. The integration
work will take up to 12 months
to complete.
The business environment continues
to be challenging. Increases to the
minimum wage and slow growth
in China, pricing pressures from
customers and increased utility
r a t es i n Ma l ay s i a con t i nue t o
squeeze margins.
The Group’s revenue decreased
marginally by 0.1% from $476.0
million in FY2013 to $475.6 million
in FY2014, but gross profit margin
i mp r o v e d b y 1 . 0% t o 12 . 6%
in FY2014.
Following the acquisition of the SSH
Group, the Group is required to
ca r r y ou t t he Pu rchase P r i ce
Allocation exercise in accordance
w i t h F R S 1 0 3 ( R ) B u s i n e s s
Combination. In view of the time
c o n s t r a i n t t o c omp l e t e t h e
exercise for the year-end closing,
a provisional negative goodwill
of $4.5 million was recognized under
other income.
