Megachem Limited
Annual Report
2014
35
1.5
FINANCE COSTS
Finance costs comprised the following:-
FY 2014
FY 2013
Variance Fav/(Unfav)
S$’000
S$’000
S$’000
%
Bills payables
287
178
(109)
(61.3)
Bank loans
205
198
(7)
(3.4)
Total finance costs
492
376
(116)
(30.8)
The increase in overall finance costs was in line with higher average borrowings in the current year as compared to
FY 2013.
1.6
SHARE OF PROFITS OF ASSOCIATED COMPANIES
H2 2014 vs H1 2014
H2 2014 vs H2 2013
As the political situation in the country seemed to have cool down in H2 2014 and the Thai economy picked up slightly,
performance of our associated companies also improved consequently. Therefore, our share of profit increased slightly
by S$79,000 or 17.0% vis-à-vis H1 2014.
FY 2014 vs FY 2013
Year-on-year, our share of profit decreased substantially by S$0.7 million or 40.9% as the recovery in H2 2014 was not
fast enough to compensate for the sharp decline suffered in H1 2014.
1.7 PROFIT BEFORE INCOME TAX
H2 2014 vs H1 2014
H2 2014 vs H2 2013
As a result of higher sales and gross profit achieved plus net foreign exchange gain recorded, net profit before tax
for H2 2014 increased substantially by S$1.1 million or 68.0% to S$2.7 million as compared to H1 2014. For the same
reasons as noted, net profit before tax for H2 2014 was higher by S$0.9 million or 49.1% as compared to H2 2013.
FY 2014 vs FY 2013
Although our profitability was affected by lower share of profit from associated companies, net profit before tax for
FY 2014 increased by S$0.4 million or 10.6% year-on-year on the back of better sales and gross profit performance and
favourable foreign exchange movement. Similarly, EBITDA was also higher by S$0.6 million or 9.9%.
1.8 NET PROFIT
Consistent with the above, net profit after tax increased by S$0.9 million or 79.5% for H2 2014 to S$2.1 million and
year-on-year, it was up by S$0.4 million or 14.6% to S$3.2 million.
2.
BALANCE SHEET ANALYSIS
As at
Variance
Fav/(Unfav)
Balance Sheet Highlights
31 December
2014
31 December
2013
Cash (S$’mil)
9.0
8.5
0.5
Borrowings (S$’mil)
21.9
17.7
(4.2)
Current ratio (times)
1.74
1.76
(0.02)
Gearing ratio (times)
0.52
0.44
(0.08)
Net assets per share (cents)
31.45
30.24
1.21
Inventory turnover (days)
90
90
-
Trade receivables turnover (days)
89
85
(4)
