Page 14 - ar2013.pdf

Operations and Financial Review (cont’d)
OTHER OPERATING INCOME
The Group’s other income increased to RM2.2 million in FY2013 from RM0.9 million in FY2012 mainly due to a
utility rebate obtained by the Group, compensation from a contractor for late completion of contract and increase
in interest income from fixed deposits.
NET PROFIT
The Group’s profit before taxation for the year had increased by 50.3% from approximately RM48.3 million to
RM72.6 million.
The Group’s profit attributable to shareholders was RM58.0 million, an increased of RM18.3 million or 46.2% from
FY2012 of RM39.7 million. The Group’s effective tax rate was higher when compared to FY2012 mainly due to the
income tax paid for dividend income received during the year from foreign subsidiary companies.
FINANCIAL POSITION
Our non-current assets increased by RM4.8 million to RM165.8 million in FY2013. The increase was mainly due to
the acquisition of property, plant and equipment of RM11.1 million and installment paid and payable for purchase
of land of RM12.4 million coupled with the foreign exchange adjustment of approximately RM0.2 million and offset
by the depreciation charge of RM19.0 million.
Our current assets increased by 38.1% from RM155.5 million as at 31 December 2012 to RM214.7 million as at
31 December 2013. The trade receivables increased by RM4.5 million to RM62.5 million as at 31 December 2013
and inventories level increased from RM30.4 million as at 31 December 2012 to RM35.7 million as at 31 December
2013, mainly due to increase in sales activities and higher production volume. Other receivables increased to
RM1.6 million as at 31 December 2013 from RM0.7 million as at 31 December 2012 mainly due to advances
made to supplier to secure the raw material. Prepayments reduced from RM1.3 million to RM0.6 million as at 31
December 2013 mainly due to prepayment of Malaysian government levy for foreign workers.
Cash and cash equivalent included fixed deposits, cash at banks and in hand. Cash and cash equivalents increased
from RM64.0 million to RM114.0 million as at 31 December 2013. The net cash flows generated from operating
activities and financing activities are RM80.2 million and RM7.9 million respectively. These were offset by net
cash used in investing activities of RM40.0 million. The Group’s investing activities were mainly on the purchase
of property, plant and equipment of RM29.5 million and installments paid for purchase of land of RM10.6 million
whereas the financing activities consist of net proceeds from conversion of warrants to shares total amounted to
RM31.0 million offset with dividend payout of RM22.5 million.
Our non-current liabilities were increased from RM12.2 million as at 31 December 2012 to RM13.0 million as at 31
December 2013. This was largely due to the increased in the provision of deferred taxation of RM0.8 million.
Current liabilities decreased by RM 4.8 million to RM44.9 million as at 31 December 2013 mainly due to lower
payables and accruals from RM47.9 million as at 31 December 2012 to RM39.3 million as at 31 December 2013
which offsetted with the increase in derivatives of RM0.3 million and also the increase in provision of taxation from
RM1.8 million as at 31 December 2012 to RM5.3 million as at 31 December 2013.
NET ASSETS PER SHARE
The net asset backing per share increased to 87.08 sen (RM) in FY2013 from 76.92 sen (RM) in FY2012 as a result
of a 26.7% increase in shareholders’ equity to RM322.7 million in FY2013 from RM254.6 million in FY2012.
ANNUAL REPORT 2013 Riverstone Holdings Limited 12