COMFORTDELGRO CORPORATION LIMITED
______
Fourth Quarter and Financial Year 2003 Financial Statement and Dividend Announcement ______
PART I – INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS
1(a)(i) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year
The Board of Directors announces the audited results of the Group for the fourth quarter and financial year (“FY”) 2003. ComfortDelGro Corporation Limited was incorporated on 1 January 2003. The merger between Comfort Group Ltd and DelGro Corporation Limited by way of separate schemes of arrangement under Section 210 of the Companies Act, Cap 50, was effected on 29 March 2003.
Group 4th Qtr 4th Qtr 2003 2002 Variance FY 2003 FY 2002 Variance $'m il $'m il % $'m il $'m il %
Turnover 487.2 443.5 9.9 1,846.0 1,701.8 8.5 Other operating income 8.2 10.1 (18.8) 34.2 38.1 (10.2) Revenue 495.4 453.6 9.2 1,880.2 1,739.9 8.1
Staff costs (164.5) (158.9) (3.5) (654.5) (593.4) (10.3) Depreciation & amortisation (72.4) (76.1) 4.9 (289.6) (289.9) 0.1 Repair & maintenance (35.1) (37.3) 5.9 (147.0) (141.6) (3.8) Road and diesel taxes (28.8) (25.4) (13.4) (113.8) (110.9) (2.6) Raw materials & consumables (22.0) (17.6) (25.0) (83.2) (62.5) (33.1) Energy and fuel costs (19.6) (14.5) (35.2) (76.7) (56.9) (34.8) Insurance & accident compensation (15.2) (15.6) 2.6 (60.1) (58.0) (3.6) Premise costs (13.3) (14.9) 10.7 (48.4) (41.4) (16.9) Vehicle leasing charges (9.2) (5.4) (70.4) (35.1) (22.7) (54.6) Drivers' incentives and benefits (6.4) (8.4) 23.8 (25.0) (22.9) (9.2) Other operating expenses (81.3) (27.9) (191.4) (185.3) (119.6) (54.9) Total operating expenses (467.8) (402.0) (16.4) (1,718.7) (1,519.8) (13.1)
Exceptional item 47.2 0.0 N.M. 47.2 0.0 N.M. Profit from operation 74.8 51.6 45.0 208.7 220.1 (5.2) Net (expense)/income from (0.1) 0.7 (114.3) 14.5 7.8 85.9 other investments Interest income 3.4 4.7 (27.7) 11.2 19.7 (43.1) Finance cost (5.8) (7.4) 21.6 (22.3) (26.4) 15.5 Share of loss in joint ventures and associates (5.0) (6.9) 27.5 (5.9) (2.0) (195.0)
Profit before incom e tax 67.3 42.7 57.6 206.2 219.2 (5.9) Income tax expense (17.3) (18.5) 6.5 (50.4) (43.9) (14.8)
Profit before minority interests 50.0 24.2 106.6 155.8 175.3 (11.1) Minority interests (6.4) (3.8) (68.4) (21.9) (26.0) 15.8
Net profit for the year 43.6 20.4 113.7 133.9 149.3 (10.3)
Notes: All figures in this announcement for the 4th quarter 2002 and FY 2002 are proforma. 1st quarter 2003 figures which are included in FY 2003 are also proforma.
N.M. Not meaningful
1(a)(ii) Included in the determination of profit before tax are the following items:-
Group
4th Qtr 2003 4th Qtr 2002 FY 2003 FY 2002 $'mil$'mil $'mil$'mil After (charging) / crediting:
Allowance for doubtful debts and bad debts (2.2) (1.5) (3.1) (3.7) Write-back/(Allowance) for stock obsolescence 0.3 0.1 0.2 (0.7) Write-back/(Impairment) in value of investments 1.7 0.9 1.8 (3.0) Foreign exchange gain / (loss) 0.3 (0.6) 0.6 0.1 Profit/(loss) on sale of investments (0.9) (0.1) 5.9 2.6 Gain on sale of subsidiary - - 0.9 - Gain on sale of associates - - 4.4 4.8 Gain on sale of joint ventures - - - 1.4 (Loss)gain on sale of vehicles, premises & equipment (2.9) (0.2) (1.3) 1.3 Restructuring expenses (2.8) (2.0) (18.5) (2.0) Write down of development cost (49.5) - (49.5) -
1(a)(iii) Adjustment for (under) /over provision of tax in respect of prior years:
Group
4th Qtr 2003 4th Qtr 2002 FY 2003 FY 2002 $'mil $'mil $'mil $'mil
Adjustment for (under) / over provision of tax in respect of prior years (0.1) 0.2 0.3 10.4
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 Company As at 31.12.2003 As at 31.12.2002 As at 31.12.2003 ASSETS $'mil $'mil $'mil
Current assets Bank and cash balances 103.4 72.2 3.3 Fixed deposits 227.0 157.7 35.2 Short-term investments 331.6 357.2 89.1 Trade debtors 132.3 125.5 - Other debtors, deposits & prepayments 161.4 111.6 205.6 Inventories 31.3 34.0 - Total current assets 987.0 858.2 333.2 Non-current assets Subsidiaries - - 506.3 Associates 3.0 11.9 0.2 Joint ventures 26.9 34.2 - Other investments 30.0 38.7 6.0 Long term receivables 0.6 5.1 - Vehicles, premises & equipment 1,453.1 1,490.6 - Taxi licences 153.1 161.1 - Goodwill 14.7 4.7 - Deferred tax assets 2.3 0.3 - Total non-current assets 1,683.7 1,746.6 512.5
Total assets 2,670.7 2,604.8 845.7
LIABILITIES AND EQUITY
Current liabilities Bank overdrafts 1.8 15.6 - Short- term bank loans 45.3 97.6 - Long-term loans-current portion 51.1 44.8 - Hire purchase creditors-current portion 36.3 27.5 - Trade creditors and accrued expenses 290.7 303.0 0.9 Due to an associate-trade 1.5 2.8 - Deposits received-current portion 45.1 48.4 - Fuel price equalisation account 34.1 34.1 - Provision for claims 59.3 52.3 - Income tax payable 60.7 49.7 - Total current liabilities 625.9 675.8 0.9 Non-current liabilities Long term loans 206.7 183.8 - Hire purchase creditors 111.0 102.4 - Other payable 36.9 40.4 - Deposits received 49.1 54.9 - Deferred tax liabilities 123.7 122.0 - Provision for service benefits and long service awards 11.5 12.2 - Total non-current liabilities 538.9 515.7 - Capital and reserves Issued capital 509.6 505.6 509.6 Capital reserves 49.7 49.2 4.5 Accumulated profits 656.1 596.3 282.0 Dividend reserve 48.7 27.3 48.7 Total equity 1,264.1 1,178.4 844.8 Minority interests 241.8 234.9 - 1,505.9 1,413.3 844.8
Total liabilites and equity 2,670.7 2,604.8 845.7
1(b)(ii) Aggregate amount of group’s borrowings and debt securities
Amount repayable in one year or less, or on demand
As at 31/12/2003 As at 31/12/2002
Secured Unsecured Secured Unsecured
$109.5mil $26.9mil $95.4mil $92.4mil
Amount repayable after one year
As at 31/12/2003 As at 31/12/2002
Secured Unsecured Secured Unsecured
$157.0mil $197.6mil $102.4mil $224.2mil
Details of any collateral
Details of the total secured bank loans of $266.5mil as at 31/12/2003 are as follows:
a. $147.2mil relates to financing of buses and motor vehicles under hire purchase arrangements; b. $45.4mil relates to loan notes issued by a subsidiary secured against a fixed deposit; c. $45.2mil relates to bank loan of a subsidiary guaranteed by a holding company; d. $25.6mil relates to a bank loan of a subsidiary guaranteed by a holding company and a JV partner; e. $0.2mil relates to a loan of a subsidiary secured by motor vehicles; f. $1.5mil relates to vehicle loans of a subsidiary and secured by a charge on the vehicles; and g. $1.4mil relates to bank overdraft of a subsidiary secured on land and building.
1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year
Consolidated Cash Flow Statement for the 4th quarter and FY 2003
Group 4th Qtr 2003 4th Qtr 2002 FY 2003 FY 2002 $'mil $'mil $'mil $'mil Cash flows from operating activities: Profit before income tax 67.3 42.7 206.2 219.2 Adjustments for: Depreciation expense 70.6 73.1 282.0 281.2 Amortisation expense 1.8 3.0 7.6 8.7 Interest expense 5.8 7.4 22.3 26.4 Interest income (3.4) (4.7) (11.2) (19.7) (Writeback)/Provision for diminution in value of long-term investments (0.1) (0.3) 4.1 (0.2) Loss/(Gain) on disposal of equities and bonds in corporations 0.9 0.1 (5.9) (2.6) Loss/(Gain) on disposal of vehicles, premises and equipment 2.9 0.2 1.3 (1.3) Development costs written down 49.5 - 49.5 - Gain on disposal of subsidiaries - - (0.9) - Gain on disposal of joint ventures - - - (1.4) Gain on disposal of associates - - (4.4) (4.8) Dividend income (0.2) (0.3) (2.2) (1.7) (Writeback)/Provision for service benefits and long service awards (0.4) 0.5 0.5 (0.1) Share of profit in joint ventures 4.9 7.3 6.0 6.7 Share of profit/(loss) in associates 0.1 (0.4) (0.1) (4.7) 199.7 128.6 554.8 505.7 Payment of service benefits and long service awards (0.5) (3.4) (1.2) (3.8) Operating profit before working capital changes 199.2 125.2 553.6 501.9 Short-term investments 0.9 41.9 25.6 79.7 Trade debtors 4.5 (11.2) (3.3) 7.6 Other debtors, deposits and prepayments (51.7) 15.2 (47.6) (2.3) Inventories (2.0) (2.4) 2.7 5.5 Long term receivables 0.3 (0.6) 4.9 (1.6) Trade creditors and accrued expenses (23.9) (27.8) (22.9) 33.7 Due to an associate (8.2) (7.7) (1.3) (23.2) Deposits received (0.9) (1.5) (9.3) 12.5 Provision for claims 0.3 3.6 4.9 5.1 Cash generated from operations 118.5 134.7 507.3 618.9 Interest paid (5.8) (7.4) (22.3) (26.4) Income tax paid 0.1 (13.5) (43.1) (46.6) Dividend paid - (15.4) (45.5) (55.7) Cash flow from operating activities 112.8 98.4 396.4 490.2
Group 4th Qtr 2003 4th Qtr 2002 FY 2003 FY 2002 $'mil $'mil $'mil $'mil
Cash flows from (used in) investing activities: Interest received 2.9 4.7 12.0 21.0 Dividend received 0.2 0.3 2.2 1.7 Proceeds from disposal of vehicles, premises and equipment 1.4 0.9 20.1 10.9 Purchase of vehicles, premises and equipment [Note (a)] (57.1) (74.8) (245.4) (380.3) Proceeds from disposal/(purchase) of equity shares and bonds in corporations,net of purchase and transfer (14.7) 0.6 10.1 3.0 Purchases of taxi licences (0.1) (1.7) (3.1) (71.0) Repayment of shareholders loan by an investee company - - 0.2 - Acquisition of subsidiaries [Note (b)] (0.1) (5.2) (15.8) (12.0) Disposal of subsidiaries - - - - Investment in joint ventures, net of impairment - - - (0.1) Disposal of joint ventures 0.7 - 0.7 6.0 Repayment of loan from joint ventures - 3.1 - 6.0 (Investment)/Disposal in associates (0.1) 11.4 13.2 13.4 Repayment of shareholders' loan by an associated company - 6.0 - 6.0 Others - 0.7 0.6 0.7 Net cash used in investing activities (66.9) (54.0) (205.2) (394.7)
Cash flows from (used in) financing activities: Short term bank loans, net (35.6) 27.2 (52.3) 54.6 Long term loans, net 40.9 (114.9) 24.0 (163.5) Hire purchase creditors, net (2.7) (7.2) (19.0) (23.3) Other payable (3.6) - (3.7) - Minority interests (6.2) (2.5) (17.1) 3.0 Proceeds from bond issue - 1.3 - 1.2 Proceeds from share issue 1.6 0.7 9.2 3.7 Proceeds from issue of shares to minority shareholders of subsidiaries (1.5) - 0.4 - Repayment of loan to minority shareholders of subsidiaries - - (0.5) - Net cash used in financing activities (7.1) (95.4) (59.0) (124.3)
Net effect of exchange rate changes in consolidating subsidiaries (7.7) 1.8 (17.9) (2.4) Net increase/(decrease) in cash 31.1 (49.2) 114.3 (31.2) Cash and cash equivalents at beginning of year 297.5 263.5 214.3 245.5
Cash and cash equivalents at end of year 328.6 214.3 328.6 214.3
The Group had net cash inflow of $31.1m for the fourth quarter 2003 as against a net cash outflow of $49.2m in the fourth quarter 2002 mainly due to lower capital expenditure and loan repayments. For FY 2003, the net cash inflow was $114.3m compared to a net cash outflow of $31.2m for FY 2002.
Note (a): Purchase of vehicles, premises and equipment 65.9 75.8 280.5 453.2 Less: Vehicles, premises and equipment purchased under financing arrangement - (1.1) - (42.6) Vehicles, premises and equipment purchased under hire purchase (8.8) 0.1 (35.1) (30.3) Net 57.1 74.8 245.4 380.3
Group 4th Qtr 2003 4th Qtr 2002 FY 2003 FY 2002 $'mil $'mil $'mil $'mil
Note (b):
Summary of the effects of acquisition of subsidiaries:
Net assets acquired:
Current assets - 0.4 9.2 0.4 Non-current assets - 2.7 18.3 8.6 Current liabilities - (0.5) (15.5) (0.5) Non-current liabilities - (1.1) (4.9) (1.1) - 1.5 7.1 7.4 Translation reserves - - (0.1) - Minority interest - - (0.6) - Net assets acquired - 1.5 6.4 7.4 Goodwill on acquisition 0.1 4.4 12.6 5.2 Total purchase consideration 0.1 5.9 19.0 12.6 Less: Portion discharged by non-cash considerations - (0.5) - (0.4) Portion discharged by cash 0.1 5.4 19.0 12.2 Less: Cash on acquisition of subsidiary - (0.2) (3.2) (0.2) Cashflow on acquisition, net of cash acquisition 0.1 5.2 15.8 12.0
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
Consolidated Statement of Changes in Equity for the 4th quarter and FY 2003:
Group Capital Accumulated Dividend Issued capital reserves profits reserves Total $'mil $'mil $'mil $'mil $'mil Balance as at 1 January 2003 505.6 49.2 5 96.3 27.3 1,178.4 Net profit for the period - - 90 .3 - 90.3 Exercise of share options 3.2 4.4 - - 7.6 Currency translation differences - (5.8) - - (5.8) Other reserves -3 .3 (3.3) - - Transfer from capital reserves 0.1 (0.1) - - - Goodwill written back upon disposal of associates -3 .6 (3.6) - - Interim dividend (18.2) 18.2 - Payment of dividends - (45.5) (45.5) Balance as at 30 September 2003 508.9 54.6 6 61.5 - 1,225.0 Net profit for the period - - 43 .6 - 43.6 Exercise of share options 0.7 0.9 - - 1.6 Currency translation differences - (6.1) - - (6.1) Other reserves -0 .3 (0.3) - - Proposed final dividend -- (48.7) 48.7 - Balance as at 31 December 2003 509.6 49.7 6 56.1 48.7 1,264.1
Consolidated Statement of Changes in Equity for the 4th quarter and FY 2002:
Group Capital Accumulated Dividend Issued capital reserves profits reserves Total $'mil $'mil $'mil $'mil $'mil Balance as at 1 January 2002 503. 7 53 .4 492.9 3 1.4 1, 081.4 Net profit for the period - - 128.9 - 128. 9 Exercise of share options 1. 6 1 .4 - - 3 .0 Currency translation differences - (8.1) - - (8.1) Other reserves -0 .4 - - 0 .4 Goodwill written back upon disposal of associates -2 .2 (2 .2) - - Transfer to dividend reserve ( 14.8) 1 4.8 - Payment of dividends - - ( 10.5) (27.3) (37.8) Balance as at 30 September 2002 505.3 49.3 594.3 18.9 1,167.8 Net profit for the period - - 20.4 - 2 0.4 Exercise of share options 0. 3 0 .4 - - 0 .7 Currency translation differences - (1.2) - - (1.2) Other reserves -0 .7 (0 .5) - 0 .2 Transfer to dividend reserve - - ( 13.0) 1 3.0 - Payment of dividends - - ( 4.9) (4.6) (9.5) Balance as at 31 December 2002 505.6 49.2 596.3 27.3 1,178.4
Statement of Changes in Equity of the Company for the 4th quarter and FY 2003:
Company Capital Accumulated Dividend Issued capital reserves profits reserves Total $'mil $'mil $'mil $'mil $'mil Balance as at 1 January 2003 -- --- Issue of shares 506 .3 - - - 5 06.3 Net profit for the period - - 74.9 - 7 4.9 Exercise of share options 2 .6 3 .6 - - 6.2 Interim dividend ( 18.2) 18.2 - Payment of dividends - (18.2) (18.2) Balance as at 30 September 2003 508.9 3.6 56.7 - 569.2 Net profit for the period - - 274.0 - 2 74.0 Exercise of share options 0 .7 0 .9 - - 1.6 Proposed final dividend - - ( 48.7) 48.7 - Balance as at 31 December 2003 509.6 4.5 282.0 48.7 844.8
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 for 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
For the fourth quarter ended 31 December 2003, the Company’s issued share capital increased by $0.7m to $509.6m following the exercise of share options under the ComfortDelGro Employees’ Share Option Scheme (“ComfortDelGro Scheme”).
As at 31 December 2003, options to subscribe for 27.1m ordinary shares remained outstanding under the ComfortDelGro Scheme.
2. Whether the figures have been audited, or reviewed and in accordance with which auditing standard or practice
The financial statements have been audited.
3. Where the figures have been audited or reviewed, the auditors’ report (including any qualifications or emphasis of matter)
AUDITORS’ REPORT TO THE MEMBERS OF
COMFORTDELGRO CORPORATION LIMITED
We have audited the financial statements of ComfortDelGro Corporation Limited for the year ended December 31, 2003. These financial statements are the responsibility of the Company’s directors. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the directors, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion:
a) the consolidated financial statements of the Group and the balance sheet of the Company are properly drawn up in accordance with the provisions of the Companies Act, Cap. 50 (the “Act”) and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of the Group and of the Company as at December 31, 2003 and the results, changes in equity and cash flows of the Group for the financial year ended on that date; and
b) the accounting and other records required by the Act to be kept by the Company and by those subsidiaries incorporated in Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.
We have considered the financial statements and auditors’ reports of all the subsidiaries of which we have not acted as auditors, and also considered the financial statements of those subsidiaries which are not required by the laws of their countries of incorporation to be audited, being financial statements included in the consolidated financial statements. The names of these subsidiaries are stated in Note 45 to the financial statements.
We are satisfied that the financial statements of the subsidiaries that have been consolidated with the financial statements of the Company are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations as required by us for those purposes.
The auditors’ reports on the financial statements of the subsidiaries were not subject to any qualification and in respect of those subsidiaries incorporated in Singapore, did not include any comment made under Section 207 (3) of the Act.
Deloitte & Touche Certified Public Accountants
Philip Yuen Ewe Jin Partner
Singapore 27 February 2004
4. Whether the same accounting policies and methods of computation as in the issuer’s most recently audited annual financial statements have been applied
Not applicable.
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
The Company and the Group have adopted all the applicable FRS that have become effective during the financial year. The adoption of the FRS does not materially affect the results of the Company and the Group for the current financial year.
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
Group
4th Qtr 2003 4th Qtr 2002 FY 2003 FY 2002
(i) Based on weighted average number of ordinary shares in issue - cents 2.15 1.01 6.59 7.40
(ii) On a fully diluted basis (detailing any adjustments made to the earnings) - 2.14 1.01 6.58 7.36
Earnings per share is calculated on the Group profit for the financial periods attributed to the shareholders of the Company divided by the weighted average number of ordinary shares of 2,030.4m (FY 2002 : 2,018.5m) during the periods under review.
Diluted earnings per share is calculated on the same basis as earnings per share by applying the weighted average number of ordinary shares and adjusted to include the outstanding exercisable share options deemed exercised up to 31 December of the reporting periods (FY 2003 : 2,035.2m; FY 2002 : 2,027.4m).
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 financial period reported on; and (b) immediately preceding financial year
Group Company
At At At 31/12/2003 31/12/2002 31/12/2003 Net asset value per ordinary share based on issued share capital - cents 62.01 58.27 41.44
8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group’s business. It must include a discussion of the following:
(a) 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; and
(b) any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on
Group revenue for FY 2003 increased by $140.3m or 8% due mainly to new routes tendered at better rates at Metroline, the commencement of revenue services of the SengKang LRT and the North East Line (NEL), lower fare leakages following the introduction of the ez-link card, the full year impact of the bus fare increases in July 2002, increased diesel sales and revenues from the acquisition of Setsco and Vinataxi offset by the absorption of the GST increase and the substantial negative impact of SARS particularly upon our taxi operations both in Singapore and China.
Operating expenses for FY 2003 increased by $198.9m or 13% due to higher wages in Metroline from an increase in staff strength plus wage increases to retain staff, increase in costs due to the commencement of revenue service of NEL, a write down of capitalized NEL costs, restructuring costs, increased diesel purchases, higher energy costs due to NEL and buses and higher vehicle leasing charges in Metroline offset by savings in staff costs from retrenchments and lower advertising costs.
The exceptional item of $47.2m was from the Land Transport Authority for commissioning cost of the NEL MRT System and the Sengkang LRT System.
Financing costs were lower due to lower borrowings and the effect of lower interest rates in FY 2003. The lower interest rate also resulted in lower interest income. Income from investment increased by $6.7m due substantially to gains and write back of prior year provisions as a result of the disposal of our non-core equity portfolio. The share of profit in associated companies dropped by $3.9m due largely to a write back of provisions in FY 2002 for NTUC Choice Homes of $8.6m offset by other provisions.
The Group profit before tax (PBT) for the year had a number of one-time items, including the impact of SARS and restructuring costs due to staff retrenchments. The disposal of non-core equities resulted in gains of $12.7m and there was also a net write back in provision for diminution in value of equities of $1.8m. In spite of the negative impact of SARS and the restructuring costs, the net profit for FY 2003 of $133.9m is only $15.4m or 10.3% below the proforma results for FY 2002.
The tax expenses for FY 2003 is 15% higher even though the PBT for FY 2003 is marginally lower due to a $10.4m write back in tax provision in FY 2002 as a result of the change in tax rate.
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 significant trends and 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 economies of the countries in which we operate are expected to grow in 2004. Our businesses can expect to benefit from such growth. While competition will remain keen, we are well positioned to face it. Our efforts to contain costs and enhance productivities will remain unabated. In line with the government’s extension of the statutory life of buses and taxis, the Group has extended the depreciation rates of its taxis to 90 months from 72 and 80 months for CityCab and Comfort Transportation respectively and for buses to 12 years from 8 years effective from 1 January 2004. The benefits of the rationalization, elimination of wasteful duplication and economies of scale from the merger will flow through this year. We will continue to seek suitable opportunities to expand, leveraging off our presence in the countries we are in.
11. Dividend
(a) Current Financial Period Reported On
Any dividend declared for the current financial period reported on? Yes.
Name of Dividend Final Dividend Type Cash Dividend Amount per Share (in cents) 3.0625 Dividend Rate (in %) 12.25% per ordinary share less tax Par value of shares $0.25 Tax Rate 22%
(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial year? N.A.
(c) Date payable
The Directors have proposed a final dividend of 12.25% (3.0625 cents) per share based on 2,038.4m shares issued less 22% tax for approval of shareholders at the Annual General Meeting on 29 April 2004. The dividend will be payable on 27 May 2004.
(d) Books closure date
NOTICE IS HEREBY GIVEN that the Transfer Books and Register of Members in respect of ordinary shares of the Company will be closed from 14 May 2004 to 16 May 2004 (both dates inclusive), for the preparation of dividend warrants. Duly completed and stamped transfers received by the Company’s Share Registrars, B.A.C.S. Private Limited, 63 Cantonment Road, Singapore 089758, up to 5.00p.m. on 13 May 2004 (the “Books Closure Date”) will be registered to determine shareholders’ entitlement to the final dividend. Shareholders (being depositor(s) whose securities account with the Central Depository (Pte) Limited) are credited with ordinary shares as at Books Closure Date will be entitled to the payment of the final dividend.
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.
Vehicle Automotive inspection & Car rental & Driving FY 2003 Bus & Rail Taxi engineering Diesel Sales testing leasing Centre Others Eliminations Total $'mil $'mil $'mil $'mil $'mil $'mil $'mil $'mil $'mil $'mil Group TURNOVER External sales 987.8 625.4 58.9 71.9 43.8 40.8 15.2 2.2 - 1,846.0 Inter-segment sales 0.1 1.2 92.3 1.1 1.9 0.7 - - (97.3) - 987.9 626.6 151.2 73.0 45.7 41.5 15.2 2.2 (97.3) 1,846.0
RESULT Segment result 60.2 103.9 29.4 7.1 12.1 8.3 3.2 (1.0) - 223.2 Other expenses (14.5) Profit from operation 208.7 Net income from other investments 14.5 Interest expense (22.3) Share of loss in joint venture (6.0) Share of profit in associates 0.1 Interest income 11.2
Profit before income tax 206.2 Income tax expense (50.4) Profit before minority interests 155.8 Minority interests (21.9) Net profit for the year 133.9
OTHER INFORMATION
Additions of vehicles, premises & equipment 77.1 168.3 5.5 2.4 1.1 23.7 1.6 0.8 280.5
Additions to taxi licences - 3.1 ------3.1 Additions to goodwill on consolidation - 1.0 - - 10.0 1.6 - - 12.6 Depreciation expense 78.6 175.1 4.6 0.6 4.2 16.1 1.4 1.4 282.0 Amortisation expense 0.4 6.7 - - 0.5 - - - 7.6
BALANCE SHEET
ASSETS Segment assets 622.3 941.5 66.5 7.6 50.0 165.2 5.7 74.5 1,933.3
Investment in associates 2.2 - - - 0.8 - - - 3.0 Investment in joint ventures 10.3 - 1.5 - - - - 15.1 26.9 Goodwill on consolidation 2.6 1.0 - - 9.5 1.6 - - 14.7 Cash, fixed deposits, equities and bonds 690.5 Deferred tax assets 2.3
Consolidated total assets 2,670.7
LIABILITIES Segment liabilities 241.9 182.5 17.2 6.7 9.1 12.4 4.2 15.4 489.4 Borrowings 491.0 Income tax payable 60.7 Deferred Tax 123.7 Consolidated total liabilities 1,164.8
Vehicle Automotive inspection & Car rental & Driving FY 2002 Bus & Rail Taxi engineering Diesel Sales testing leasing Centre Others Eliminations Total $'mil $'mil $'mil $'mil $'mil $'mil $'mil $'mil $'mil $'mil Group TURNOVER External sales 892.8 634.5 52.0 45.9 16.6 37.7 13.9 8.4 - 1,701.8 Inter-segment sales 0.1 0.8 81.1 0.9 2.0 - - 0.1 (85.0) - 892.9 635.3 133.1 46.8 18.6 37.7 13.9 8.5 (85.0) 1,701.8
RESULT Segment result 65.9 116.6 21.8 5.9 7.5 11.5 2.7 (1.0) - 230.9 Other expenses (10.8) Profit from operation 220.1 Net income from other investments 7.8 Interest expense (26.4) Share of loss in joint venture (6.7) Share of profit in associates 4.7 Interest income 19.7
Profit before income tax 219.2 Income tax expense (43.9) Profit before minority interests 175.3 Minority interests (26.0) Net profit for the year 149.3
OTHER INFORMATION
Additions of vehicles, premises & equipment 173.4 234.3 0.9 0.7 0.6 39.4 1.0 2.9 453.2
Additions to taxi licences 0.1 70.9 ------71.0 Additions to goodwill on consolidation 5.1 - - - - 0.1 - - 5.2 Depreciation expense 80.2 178.1 4.9 - 2.4 13.0 1.2 1.4 281.2 Amortisation expense 2.9 5.8 - - - - - 8.7
BALANCE SHEET
ASSETS Segment assets 596.7 953.3 69.5 0.5 42.1 155.6 5.3 107.7 1,930.7
Investment in associates 2.0 ------9.9 11.9 Investment in joint ventures 11.1 - 1.5 - - - - 21.6 34.2 Goodwill on consolidation 2.8 1.8 - - - 0.1 - - 4.7 Cash, fixed deposits, 623.0 equities and bonds Deferred tax assets 0.3
Consolidated total assets 2,604.8
LIABILITIES Segment liabilities 230.3 207.7 21.0 - 4.0 13.6 3.3 25.6 505.5 Borrowings 514.3 Income tax payable 49.7 Deferred tax liabilities 122.0
Consolidated total liabilities 1,191.5
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
Addition to vehicles, Carrying amount equipment ,taxi licences Turnover of segment assets & goodwill on consolidation FY 2003 FY 2002 FY 2003 FY 2002 FY 2003 FY 2002 $'mil $'mil $'mil $'mil $'mil $'mil
Singapore 1,289.3 1,248.5 1,913.0 1,909.8 207.2 356.7 United Kingdom 462.6 367.8 401.0 358.4 54.9 47.3 China 88.8 85.5 341.0 336.6 30.8 125.4 Vietnam 4.5 - 6.4 - 2.8 - Malaysia 0.8 - 9.3 - 0.5 - Total 1,846.0 1,701.8 2,670.7 2,604.8 296.2 529.4
15.a A breakdown of sales
Increase/ FY 2003 FY 2002 (decrease) $'mil $'mil %
(a) Sales reported for first half year 885.1 819.9 8 .0
(b) Operating profit/loss after tax before 52.4 78.9 (33.6) deducting minority interests reported for first half year
(a) Sales reported for second half year 960.9 881.9 9 .0
(b) Operating profit/loss after tax before 103.4 96.4 7 .3 deducting minority interests reported for second half year
15.b. Interested Person Transactions
Aggregate value of all interested person transactions during the financial year under review (excluding transactions less than $100,000 and transactions conducted under shareholders’ mandate pursuant to Rule 920) FY 2003 ($’mil) Sale of investments - Singapore Labour Foundation 0.6
16. A breakdown of the total annual dividend (in dollar value) for the issuer’s latest full year and its previous full year
FY 2003 FY 2002
Ordinary Not applicable - Interim $18.2 mil net of tax - Proposed final $48.7 mil net of tax Preference Nil Total $66.9 mil net of tax
BY ORDER OF THE BOARD
Bobby Tan Cher Chong Company Secretary
27 February 2004