43
ANNUAL REPORT 2015
42
BAKERTECHNOLOGYlimited
FINANCIALREVIEW
TheGroup reportedanegative cashflow fromoperatingactivitiespredominantly
due tohigherworking capital requirements, especially forwork-in-progress.
The Group also incurred higher capital expenditure in FY2015 as it purchased
additional leasehold property and additional plant andmachineries to boost its
production capabilities.
During theyear, theGroupcollectedproceedsof$13.2million from theconversion
of warrants. However, despite paying a dividend to shareholders (1 cent per
share for FY2014 or $10.1million), there was positive cash flow from financing
activities. For FY2014, the Group reported a negative cash flow of $36.6million
fromfinancingactivitiesas itpaidoutdividendsof$45.2million (5centspershare
for FY2013, comprising 1 cent ordinary dividend and 4 cents special dividend) to
the shareholders to reflect higher investment gains inFY2013.
TheGroup’s cash position remains strong at $140million (13.8 cents per share)
asat theendof 2015.
CashFlows
2015
$’000
2014
$’000
Changes
%
Cash (used in) / fromoperating
activities
(22,489)
9,030
NM
Cashused in investingactivities
(12,964)
(8,125)
+60%
Cash from / (used in) financing
activities
3,166
(36,550)
NM
Net decrease in cash& cash
equivalent
(32,287)
(35,645)
-9%
Effect of exchange rate changes
on cashand cashequivalents
3,672
2,459
+49%
Cash& cashequivalent at
beginningof year
168,685
201,871
-16%
Cash& cashequivalent at endof
year
140,070
168,685
-17%
Quarterly revenuewere significantly lower for 3Q2015 and 4Q2015 as the impact
from weaker demand arising from prolonged low oil prices was felt. As a
result, the Group reported net losses (excluding foreign exchange gains) for
bothquarters.
Gross profit margins varied depending on the product mix and stages of
constructionof theprojectsbeingundertakenduring the variousquarters.
For thepast 2 years, although theUSdollar hasappreciatedapproximately 4.8%
and 7.0% against the Singapore dollars for FY2014 and FY2015 respectively, the
foreign exchange movements have been very volatile quarter-to-quarter. As a
result, quarterly net profit fluctuates significantly especially during 3Q2014
to3Q2015.
GroupQuarterly
Results
Q1
$’000
Q2
$’000
Q3
$’000
Q4
$’000
Full Year
$’000
Revenue
2015
27,935 12,682 5,556
7,891 54,064
2014
18,510 17,791 21,113 28,858 86,272
GrossProfit
2015
7,856
3,795
2,054
1,514 15,219
2014
4,935
4,157
6,179
7,436 22,707
Net profit
2015
6,401
45
2,663
55
9,164
2014
1,760
955
4,327
6,475 13,517
Net profit / (loss)*
2015
3,818
1,219
(905)
(290)
3,842
2014
1,703
1,656
2,820
3,691
9,870
Grossprofitmargin
2015
28% 30% 37% 19% 28%
2014
27% 23% 29% 26% 26%
*NMdenotesNotMeaningful.
*Excluding foreignexchangegain / losses.
