+++++++++++++++++++++++++ Tat Hong's audited accounts for the year ended 31st March 2002 show that turnover was S$153,265,000 (A$164,132,000), 29.3% higher than the turnover for the previous financial year.
The company recorded a net profit of S$1,693,000 (A$1,813,000), a significant improvement compared with the loss of S$14,937,000 (A$15,560,000) for the previous year. The improvement for the financial year was due to the following factors:
- Increased equipment and parts sales recorded by Australia due to additional sales from franchises acquire from Banbury as a result of the merger between Banbury and Tutts-Tat Hong;
- Increased export of equipment from Singapore to newly developed markets, in particular United States, Hong Kong and Japan;
- Improved rental turnover as a result of higher rental activities in Singapore and Malaysia;
- Improved rental rates on large capacity cranes;
- Lower interest expenses incurred on borrowings due to improved cash flow of the Company.
Duplicated overheads, relocation costs and redundancy payments were incurred during the merger of Banbury and Tutts-Tat Hong in Australia at a cost to the group of S$1.7 million. The results of the Company would have been better off by this amount if it had not been for these items which are non-recurring.
Strong growth in infrastructure development of the region is anticipated. Tat Hong is well positioned to participate in the supply of rental equipment to these projects which will have a significant and favourable impact on the Company's results.
The directors believe that the company can capitalise on this opportunity and add value for its shareholders.
Submitted by Ong Tiew Siam, COMPANY SECRETARY on 12/06/2002 to the ASX and SGX
TAT Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
