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Full Year Results Financial Statement And Related Announcement

Financials Archive

Consolidated Statement of Profit or Loss and Other Comprehensive Income for Financial year ended 31 December 2023

Consolidated Statement of Profit or Loss

Income Statement

Consolidated Statement of Other Comprehensive Income

Statement Of Comprehensive Income

Statements of Financial Position As at 31 December 2023

Balance Sheet

Review of Group Performance

The Group registered revenue of S$136.4 million in 2H2023, a 2.1% increase as compared to S$133.5 million in 2H2022 on the back of higher contribution from the PCS division. Against 1H2023, the Group recorded a 34.1% increase in revenue in 2H2023 contributed by the PCS and ICT divisions. Group revenue of S$238.1 million in FY2023 was 2.4% higher than FY2022 due to higher revenue contribution from the PCS and ICT divisions.

The Group’s lower gross profit and gross margins in 2H2023 was mainly attributed to the ICT division. For FY2023, the Group’s lower gross profit and gross margin were attributed to the PCS and ICT divisions. Excluding the impairment of investment in associate of S$1.7 million, the Group recorded an operating loss before tax of S$5.3 million in 2H2023 as compared to an operating loss before tax of S$1.3 million in 2H2022 mainly due to higher losses recorded from the ICT and Engineering divisions, partially mitigated by profit improvements from the PCS division. The Group recorded a higher operating loss before tax of S$5.3 million in 2H2023 as compared to an operating loss before tax of S$3.8 million in 1H2023. In 2H2023, there was profit improvement from the PCS division, offset by higher losses reported by the ICT and Engineering divisions. In FY2023, the Group recorded a higher operating loss before tax of S$9.1 million against FY2022 operating loss before tax of S$5.3 million mainly due to the poor performance of the ICT and Engineering divisions. The loss was also partially attributed to higher consultancy and restructuring costs recorded during the year.

PCS Division recorded a higher revenue of S$111.8 million in FY2023 as compared to last year but had registered a lower profit of S$0.4 million in FY2023 due to lower service revenue recorded. The Malaysian operations continue to be the main profit contributor and have recorded higher profits against FY2022 due to higher revenue recognition. The division lower profit in FY2023 was attributed to the lower commission revenue received for its retail operations in Singapore. These non-performing retail shops have been closed during the year. There was however additional profit contribution from the managed service contract secured with Honor since June 2023.

ICT Division incurred a higher loss of S$6.3 million although a higher revenue of S$76.7 million was registered in FY2023. The higher revenue in FY2023 was mainly from its Communications business. Both the IT and Communications business recorded losses in FY2023. The Division’s loss was primarily due to additional costs incurred to complete several IT projects. There were also higher staff cost in FY2023 as RCPL was acquired in June 2022. In addition, expenses were incurred to develop expertise in Hybrid Cloud Managed Services and Data Analytics.

Engineering Division recorded a lower revenue of S$49.6 million in FY2023. The Division recorded a higher gross profit and gross margins in FY2023. The Indonesian operation continues to be the main profit contributor and recorded profit improvement against FY2022. The Division’s losses of S$3.3 million in FY2023 were mainly attributed to the Philippines operations due to write off of contract assets resulting from cancellation of orders. The Singapore operations had however recorded lower losses due to improvement of gross margins.

The Group generated a higher net cash from its operating activities in FY2023 due to improvement in changes in working capital in 2H2023. As at 31 December 2023, the Group remains in a net cash position of S$16.7 million as compared to 31 December 2022 of $15.8 million.


The 2024 economic forecast for Singapore is optimistic, projecting a GDP growth range of 1.0% to 3.0%. This positive outlook is fueled by a gradual recovery that extends to Southeast Asian economies. Despite ongoing global economic uncertainties and inflationary pressures, the Group's primary focus remains on achieving revenue growth in FY2024 and progressively returning to profitability. We will continue to manage our cash flow prudently and maintain a resilient balance sheet to ensure operational stability.

The Group’s commitment to the strategic roadmap remains steadfast, with active engagement in streamlining core businesses and improving operational performance. This approach enables us to adeptly navigate economic challenges, capitalise on emerging opportunities, and fortify our presence in key markets.

In the PCS Division, significant achievements include expanding into higher-margin fulfillment and 4PL managed services, marked by a substantial partnership with HONOR, and securing a significant S$500 million 4PL contract from U Mobile in Malaysia for an initial term of 2 years which may be extended for one year in accordance with the contract.

The ICT Division is proactively capitalising on the industry shift towards a hybrid cloud approach, especially in the education and health care sectors to address customers’ pain points and create valueadded service solutions. Additionally, the Division remains committed to enhancing efficiency by rationalising its operations and optimising costs.

For the Engineering Division, increased in activities in its key market, Indonesia, are expected. The Division aims to expand its products and services, with a specific focus on Fiber-To-The-Home (FTTH) within the telco market. Additionally, the Division is targeted to deliver power solution equipment for data centre projects, aligning with anticipated growth in this sector that extends beyond the telco market.