Logistics Services Business
Our Logistics Services Business continued to
perform strongly with the biggest increase in
revenue receipts
,
climbing 25
.
6% to $14
.
7 million
in FY2015 from $11
.
7 million in FY2014
.
This was
mainly attributable to the increase in revenue
from the transportation services and container
depot business
.
EXPENSES
In tandem with the growth in operational activities
of the Group
,
our cost of sales increased 11
.
0%
to $72
.
9 million in FY2015 compared to FY2014
.
The bulk of the increase was largely due to rental
costs relating to new master leases and container
depot management charges
.
Selling and distribution expenses increased
138
.
1% to $2
.
3 million in FY2015 from $1
.
0
million a year ago
,
as the Group intensified
efforts to lease out new properties on its books
.
Administrative expenses rose 3
.
2% to $17
.
8
million in FY2015
,
mainly due to an increase in
depreciation
.
OTHER OPERATING INCOME
The Group
’
s other operating income increased
by 21
.
8% to $2
.
7 million in FY2015 from $2
.
2
million in FY2014 mainly due to higher payouts
from the Wage Credit Scheme and government
grants received
.
NON-RECURRING ITEMS
In addition
,
fair value gains due to revaluation of
investment properties was $0
.
6 million in FY2015
compared with fair value gain of $5
.
8 million in
FY2014
.
The Group also incurred a one-time IPO
expense of approximately $1
.
6 million in FY2015
.
PROFIT BEFORE TAX
As a result of the aforementioned factors
,
the
Group reported a profit before tax of $4
.
3 million
in FY2015
,
down 69
.
5% from $14
.
0 million in
FY2014
.
BALANCE SHEET
Non-current assets increased by $17
.
7 million
from $40
.
9 million as at 30 September 2014
to $58
.
6 million as at 30 September 2015
.
The
increase was mainly due to increase in property
,
plant and equipment and investment properties
,
largely attributable to the acquisition of 100 Eunos
Avenue 7 and the capitalisation of renovation
costs of new leased sites
.
Trade and other receivables rose to $14
.
3
million
,
from $10
.
2 million previously stemming
from a $1
.
5 million increase in trade receivables
,
deposits of $1
.
8 million paid to suppliers and
landlords for new sites and a $0
.
8 million
increase in other receivables
.
Cash and bank
balances and fixed deposits increased by 51
.
5%
to $30
.
3 million due mainly to the Group
’
s IPO
proceeds
.
Non-current liabilities increased by $8
.
1
million to $20
.
6 million in FY2015
,
from $12
.
5
million in FY2014
,
mainly due to $8
.
8 million
increase in bank borrowings
.
CASH FLOW STATEMENT
FY2015
($’M)
FY2014
($’M)
Net cash generated from
operating activities
7
.
7
11
.
2
Net cash used in investing
activities
(20
.
6)
(5
.
4)
Net cash generated from/
(used in) financing activities 23
.
1
(4
.
8)
Cash and cash equivalents
as at 30 Sept
24
.
6
14
.
4
NET CASH GENERATED FROM
OPERATING ACTIVITIES
Operating activities generated net cash of $7
.
7
million in FY2015 compared to $11
.
2 million
generated in FY2014
.
This was a result of
operating cash flows before changes in working
capital of $9
.
7 million
,
adjusted for net working
capital outflow of $0
.
8 million
;
net income tax
paid of $0
.
8 million
;
and net interest expense paid
of $0
.
4 million
.
NET CASH USED IN INVESTING ACTIVITIES
Net cash used in investing activities amounted to
$20
.
6 million
,
which was mainly attributable to
the acquisition of our investment property at 100
Eunos Avenue 7 of $10
.
7 million
;
and purchase of
property
,
plant and equipment of $10
.
7 million
.
NET CASH GENERATED FROM FINANCING
ACTIVITIES
Net cash from financing activities of $23
.
1 million
was mainly due to proceeds received from
bank borrowings of $10
.
3 million and proceeds
received from the issue of New Shares pursuant
to our IPO of $17
.
0 million
.
As a result
,
the Group
’
s cash and cash
equivalents stood at $24
.
6 million as at end
FY2015
,
compared to $14
.
4 million as at end
FY2014
.
16
LHN Limited Annual Report
Operations and
Financial Review
