Megachem Limited Annual Report 2015 35 Finance costs comprised the following: 1.5 Finance costs 1.6 Share of profit of associated companies H2 2015 S$‘000 H1 2015 S$’000 H2 2014 S$’000 Bills payables 137 144 168 8 5.2 32 18.9 Bank loans 173 139 104 (35) (25.0) (70) (67.4) Total finance costs 310 283 272 (27) (9.6) (38) (13.9) Variance Fav(Unfav) H2 2015 VS H1 2015 % Variance Fav(Unfav) H2 2015 VS H2 2014 % S$’000 S$’000 FY 2015 S$‘000 FY 2014 S$’000 S$’000 % Bills payables 281 287 7 2.3 Bank loans 312 205 (107) (52.3) Total finance costs 593 492 (100) (20.4) Variance Fav(Unfav) H2 2015 vs H1 2015 H2 2015 vs H2 2014 Average trade borrowings continued to fall in H2 2015 as compared to H1 2015 and H2 2014 as a result of positive cashflow. On the other hand, new long term bank loan was drawn down in March 2015 to finance the land purchase in Malaysia. This caused overall finance costs for H2 2015 to be higher than H1 2015 and H2 2014 by S$27,000 or 9.6% and S$38,000 or 13.9% respectively. FY 2015 vs FY 2014 Finance costs increased year-on-year by S$0.1 million or 20.4% primarily due to new long term bank loan drawn down and higher borrowing rates although average trade borrowings had decreased. H2 2015 vs H1 2015 H2 2015 vs H2 2014 The distribution business segment from our associated company in Thailand remained weak in H2 2015.The increase in our share of profits of S$0.3 million or 87.0% vis-à-vis H1 2015 was primarily due to one-time valuation gain of S$0.2 million on plant and equipment resulting from the restructuring of one of our associated companies. As compared to H2 2014, share of profits were higher by S$40,000 or 7.3% mainly due to valuation gain on plant and equipment of S$0.2 million. FY 2015 vs FY 2014 Year-on-year, our share of profit decreased by S$0.1 million or 11.3% as the Thai economy had yet to see a strong recovery this year, which mirrored the performance of our ASEAN market although net gain on restructuring of one of the associated companies helped to increase profitability in the current year.
RkJQdWJsaXNoZXIy NTkwNzg=