Operating and Financial Review After adjusting for the impact of the fire incident, H2 2024 operating expenses would have increased by S$1.1 million or 8.4% vis-à-vis H1 2024. H2 2024 vs H2 2023 As compared to H2 2023, operating expenses decreased by S$3.8 million or 20.3%. Similarly, the decrease was mainly due to expenses incurred as a result of the fire incident (eg demolition and decontamination costs and waste disposal costs). Compensation claims in H2 2023 were in relation to loss or damages to customers’ inventories stored at the warehouse (approximately S$0.6 million) and customers’ consequential losses (approximately S$0.2 million). Property, plant and equipment destroyed in the fire amounted to S$0.8 million were written down in H2 2023. The decrease was offset by higher employee remuneration of S$0.6 million, higher net foreign exchange losses and warehouse storage charges of S$0.4 million each. Adjusting for the impact of the fire incident, H2 2024 operating expenses would have increased by S$1.2 million or 9.0% over H2 2023. FY 2024 vs FY 2023 Year-on-year, operating expenses for FY 2024 increased by S$1.9 million or 6.1% to S$32.5 million. The increase was mainly due to higher waste disposal costs of S$1.9 million, higher employee remuneration of S$1.5 million, higher net foreign exchange losses of S$0.6 million, higher warehouse storage charges of S$0.7 million and higher insurance expenses of S$0.2 million. This was offset by lower demolition and decontamination costs of S$1.3 million, lower compensation claims of S$0.8 million and the absence of loss from property, plant and equipment destroyed in the fire written down of S$0.8 million. (e) Finance costs Variance Fav/(Unfav) Variance Fav/(Unfav) H2 2024 H1 2024 H2 2024 vs H1 2024 H2 2023 H2 2024 vs H2 2023 S$’000 S$’000 S$’000 % S$’000 S$’000 % Bills payables 516 514 (2) (0.5) 489 (27) (5.5) Bank loans 267 390 123 31.5 442 175 39.6 Bank overdraft 39 17 (22) (> 100.0) 28 (11) (40.1) Finance leases 18 11 (7) (61.5) 9 (9) (100.0) Lease liabilities 71 67 (4) (4.9) 73 2 3.4 Total finance costs 911 999 88 8.9 1,041 130 12.5 FY 2024 FY 2023 Variance Fav/(Unfav) S$’000 S$’000 S$’000 % Bills payables 1,030 962 (68) (7.1) Bank loans 657 839 182 21.8 Bank overdraft 56 82 26 31.1 Finance leases 28 12 (16) (> 100.0) Lease liabilities 139 142 3 2.4 Total finance costs 1,910 2,037 127 6.2 34 ANNUAL REPORT 2024
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