42
Baker Technology LimitedAnnual Report 2014
FINANCIAL
REVIEW
FINANCIALPERFORMANCE
2014
2013
%
$’000 $’000 Change
Revenue
86,272
83,299
+4%
Cost of sales
(63,566)
(59,531)
+7%
Gross profits
22,706
23,768
-4%
Other operating income / (expenses), net
4,642
1,871
+148%
Administrativeexpenses
(11,022)
(7,813)
+41%
Finance costs
-
(8)
-100%
Shareof results of an associate
-
(495)
-100%
Gainondisposal of an associate
-
8,757
-100%
Profit before tax
16,326
26,080
-37%
Income tax expenses
(2,809)
(3,707)
-24%
Profit after tax
13,517
22,373
-40%
Gross ProfitMargin
26%
29%
The 4% increase in Group revenue was due to higher progressive revenue recognition as a result of increased
shipments tocustomers. Pre-taxprofitwas significantly lower compared toFY2013mainlydue toan investment gain
of $8.8million from thedisposal of DiscoveryOffshoreS.A. inFY2013.
With the incorporation of new subsidiaries in the last financial year and the construction of the liftboat, theGroup
incurred higher administrative expenses of $3.2million. However, these increases were offset by foreign exchange
gainsduringFY2014asa result of the strengtheningof theUSdollarsagainst theSingaporedollars, especially in the
secondhalf of the year.
TheGroup’s effective tax rate for FY2014was 17% compared to 14% inFY2013. The FY2013 ratewas lower than the
statutory income tax rateof 17% inSingapore, as the investmentgain from thedisposal of anassociatewascapital in
natureandnot subject to tax. The factors above contributed toanet profit of $13.5million inFY2014. Basicearnings
per sharewere1.5cents for FY2014, compared to2.7cents inFY2013. Fullydilutedearningsper sharewere1.4cents,
after the adjustment for thedilutiveeffect of approximately 94millionwarrants outstanding.
The Directors have recommended a first and final tax-exempt (one-tier) dividend of 1.0 cent per share to be paid
for the year ended 31December 2014. This is subject to shareholders’ approval at the forthcomingAnnual General
Meetingof theCompany.
