43
TELECHOICE INTERNATIONAL LIMITED
2015 ANNUAL REPORT
GROUP FINANCIAL
REVIEW
1.5 Exceptional items
Exceptional items comprises of loss on disposal of a joint venture of $0.4 million and additional contingent consideration of
$0.2 million.
Loss on disposal of a joint venture was related to the disposal of a foreign joint venture. The loss arose from reclassification
of exchange reserve to income statement.
Additional contingent consideration was relating to the Tranche 2 consideration payable on acquisition of NxGen.
1.6 Operating profit before tax
Operating profit before tax margins
FY2015
FY2014
Change
PCS
1.8%
1.9%
-0.1 ppt
ICT
1.4%
1.0%
0.4 ppt
Engineering
6.3%
7.0%
-0.7 ppt
Group
2.2%
2.2%
0.0 ppt
Group operating PBT increased by 12% to $12.8 million in FY2015. PBT margins maintained at 2.2% for both periods. Against
FY2014, ICT recorded increase in PBT margins whilst both PCS and Engineering recorded decrease in PBT margins.
PCS
contributed to 60% of group operating PBT in FY2015 (FY2014: 60%). PBT increased by 13% or $0.9 million to $7.7 million
in FY2015 due to higher profit contribution from Singapore operations. The weakening of the Malaysian Ringgit has impacted
the profit contribution from Malaysia.
ICT
contributed to 12% of group operating PBT in FY2015 (FY2014: 9%). PBT increased by 50% or $0.5 million to $1.5 million in
FY2015 due to lower operating expenses partially offset by lower gross profits. Excluding the amortisation of intangible assets
arising from the acquisitions and interest accretion, operating PBT for FY2015 and FY2014 maintained at $2.5M.
Engineering
contributed to 28% of group operating PBT in FY2015 (FY2014: 31%). PBT was maintained at $3.6 million in
FY2015. Higher profit contribution from Indonesia despite the translation loss due to the weakening of the Indonesian Rupiah
was partially offset by losses from the Malaysian operations.
1.7 Profit after tax and non-controlling interests
In $ million
FY2015
FY2014
Change (%)
Income tax expenses
2.1
2.2
-5%
Effective tax rate
17.2%
19.3%
-1.7 ppt
Profit after tax and non-controlling interests
10.3
9.4
10%
Profit after tax margins
1.8%
1.8%
0.0 ppt
Group
PATMI
increased by 10% to $10.3 million in FY2015.
Income tax expenses
were lower than the previous financial year by 5% or $0.1 million. The lower effective tax rate in FY2015
was mainly due to lower profit contribution from overseas entities that have higher statutory tax rates.
