CSC : Announcements on First Quarter Financial Results

Financial Statements and Related Announcement::First Quarter Results

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Financial Statements and Related Announcement::First Quarter Results Issuer & Securities

Issuer/ Manager CSC HOLDINGS LIMITED

Securities CSC HOLDINGS LTD - SG1F84861094 - C06

Stapled Security No

Announcement Details

Announcement Title Financial Statements and Related Announcement

Date & Time of Broadcast 10-Aug-2016 18:02:28

Status New

Announcement Sub Title First Quarter Results

Announcement Reference SG160810OTHRTGR0

Submitted By (Co./ Ind. Name) Lee Quang Loong

Designation Company Secretary

Description (Please provide a detailed description of the event in the box below - Refer to the Online help for the format)

Please refer to the attachment.

Additional Details

For Financial Period Ended 30/06/2016

Attachments

1QFY17.pdf Total size =473K

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11/8/2016

CSC HOLDINGS LIMITED (Company Registration Number: 199707845E) Financial Statements Announcement for the First Quarter Ended 30 June 2016 (For the Financial Year Ending 31 March 2017) Table of Contents Page

REVIEW OF THE PERFORMANCE OF THE GROUP 3

CONSOLIDATED STATEMENT OF PROFIT OR LOSS 3

STATEMENT OF FINANCIAL POSITION 5

CASH FLOW 6

OUTLOOK 7

CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE 3 MONTHS ENDED 30 JUNE 2016 8

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE 3 MONTHS ENDED 30 JUNE 2016 9

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 10

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE 3 MONTHS ENDED 30 JUNE 2016 12

STATEMENTS OF CHANGES IN EQUITY FOR THE 3 MONTHS ENDED 30 JUNE 2016 14

NOTES TO THE FINANCIAL STATEMENTS 16

NOTES TO THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS 16

A Cost of sales…………………………………………………………………………………………………. 16 B Other income………………………………………………………………………………………………… 16 C Administrative expenses…………………………………………………………………………………… 16 D Other operating (income)/expenses………………………………………………………………………. 17 E Tax expense…………………………………………………………………………………………………. 17 F Interested person transactions…………………………………………………………………………….. 18

NOTES TO THE STATEMENT OF FINANCIAL POSITION 19

1 Property, plant and equipment…………………………………………………………………………….. 19

2 Inventories…………………………………………………………………………………………………….19

1. Excess of progress billings over construction work-in-progress……………………………………….. 20

2. Aggregate amount of Group's borrowings and debt securities………………………………………… 20

NOTES TO THE STATEMENT OF CHANGES IN EQUITY 21

1 Changes in the Company's Share Capital……………………………………………………………….. 21

AUDIT 21

ACCOUNTING POLICIES 21

(LOSS)/EARNINGS PER SHARE 22

NET ASSET VALUE 23

VARIANCE FROM PROSPECT STATEMENT 23

DIVIDEND 23

CONFIRMATION 23

USE OF PROCEEDS RAISED FROM IPO AND ANY OFFERINGS PURSUANT TO CHAPTER 8 23

WHITEWASH WAIVER IN RELATION TO RIGHTS CUM WARRANTS ISSUE 24

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Review of the Performance of the Group

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

1QFY17 - for the 3 months ended 30 June 2016 4QFY16 - for the 3 months ended 31 March 2016 1QFY16 - for the 3 months ended 30 June 2015

Review of Results for the First Quarter Ended 30 June 2016

1QFY17 $'000	4QFY16 $'000	Change %	1QFY17 $'000	1QFY16 $'000	Change %
Revenue	69,109	65,299	5.8	69,109	124,353	(44.4)
Gross Profit	2,002	1,764	13.5	2,002	8,994	(77.7)
Other Income	1,332	585	N.M.	1,332	454	N.M.
Operating Expenses	(6,575)	(7,269)	(9.5)	(6,575)	(7,818)	(15.9)
(Loss)/Profit from Operating	(3,241)	(4,920)	(34.1)	(3,241)	1,630	N.M.
Activities
Net Finance Expenses	(937)	(945)	(0.8)	(937)	(967)	(3.1)
Share of Profit of a Joint Venture	36	112	(67.9)	36	21	71.4
(Loss)/Profit before Tax	(4,142)	(5,753)	(28.0)	(4,142)	684	N.M.
Tax Expense	(582)	(806)	(27.8)	(582)	(278)	N.M.
(Loss)/Profit for the period	(4,724)	(6,559)	(28.0)	(4,724)	406	N.M.
EBITDA	3,561	1,814	96.3	3,561	8,496	(58.1)

Gross Profit Margins 2.9% 2.7% 2.9% 7.2%

Revenue

The Group recorded revenue of $69.1 million for 1QFY17, a decline of 44.4% as compared to $124.4 million in 1QFY16. The decline in revenue was mainly due to the completion of existing projects, coupled with lower revenue from newly awarded projects. Demand for property in Singapore remains weak and this has a direct impact on the demand for construction services from the residential sector. Government infrastructure projects such as the construction of the East Coast stretch of the Thomson-East Coast Mass Rapid Transit Line are expected to commence in the last quarter of calendar year 2016. The Group is actively pursuing contracts for these projects to replenish its order book.

Quarter-on-quarter, revenue for 1QFY17 was largely similar to 4QFY16 as the Group's work volume remained low.

Gross Profit and Gross Profit Margins (GPM)

Gross profit for 1QFY17 was lower at $2.0 million (1QFY16: $9.0 million) in line with the lower revenue recorded for the period under review. The weak results were largely due to lower profit margins from recently completed and current projects.

Quarter-on-quarter, gross profit and GPM for 1QFY17 registered a slight improvement from 4QFY16.

Other Income

The Group recorded other income of $1.3 million in 1QFY17 (1QFY16: $0.5 million), mainly from the disposal of older equipment. In light of the weak demand, the Group has continued to right-size its operations and reduce costs by disposing of its older and less efficient equipment.

Quarter-on-quarter, other income of $1.3 million was higher compared to the $0.6 million recorded in 4QFY16, due to higher gain recorded from the disposal of older equipment in 1QFY17.

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