2022
A N N U A L
R E P O R T
S Y N E R G I S E D T O S E C U R E
TABLE OF CONTENTS
CORPORATE PROFILE
MESSAGE TO SHAREHOLDERS
FINANCIAL HIGHLIGHTS
OPERATIONS & FINANCIAL REVIEW
BOARD OF DIRECTORS
KEY MANAGEMENT
CORPORATE GOVERNANCE REPORT
DIRECTORS' STATEMENT
INDEPENDENT AUDITOR'S REPORT
FINANCIAL STATEMENTS
STATISTICS OF SHAREHOLDINGS
NOTICE OF ANNUAL GENERAL MEETING
113 ADDITIONAL INFORMATION ON DIRECTORS SEEKING RE-ELECTION
PROXY FORM
This annual report has been prepared by Secura Group Limited (the "Company") and has been reviewed by the Company's sponsor, United Overseas Bank Limited (the "Sponsor"), for compliance with Rules 226(2)(b) and 753(2) of the Singapore Exchange Securities Trading Limited (the "SGX-ST") Listing Manual Section B: Rules of Catalist.
This annual report has not been examined or approved by the SGX-ST. The SGX-ST assumes no responsibility for the contents of this annual report, including the correctness of any of the statements or opinions made or reports contained in this annual report.
The contact persons for the Sponsor are Mr. David Tham, Senior Director, Equity Capital Markets and Ms. Priscilla Ong, Vice President, Equity Capital Markets, who can be contacted at 80 Raffles Place, #03-03 UOB Plaza 1, Singapore 048624, telephone: +65 6533 9898.
ANNUAL REPORT 2022 | 1 |
Our Vision | Our Mission | |
To be a leading security solutions | Building a safer world with |
provider in Singapore and beyond | innovative security solutions and |
exceptional service |
Core Values
A.I.R.E
ACCOUNTABILITYINTEGRITY
We take ownership and | We build trust through responsible |
responsibility for our actions | actions and honest relationships |
RESPECT | EXPLORATION |
We value and treat everyone with | Keep an open mind, stay curious |
dignity and professionalism | and embrace continuous learning |
and innovation |
2 Secura Group Limited
CORPORATE PROFILE
Listed on the Catalist Board of the SGX-ST, Secura Group Limited ("Secura" or the "Company", and together with its subsidiaries, the "Group") is one of the leading providers of an integrated suite of security services, products and solutions.
The Group's security guarding business, Soverus Pte Ltd is one of the leading security agencies in Singapore. As a premium security agency, the Group provides unarmed security guarding services, as well as operates a state- of-the-art24-hour command centre with remote CCTV surveillance and video analytics for round-the-clock monitoring of premises.
Established in 1976, the Group's security printing business, Secura Singapore Pte Ltd has been providing security printing services of value documents with anti-counterfeit features and owns one of the largest cheque printing
businesses in Singapore. With operations in Singapore, Bangladesh and Taiwan, the Group's range of value documents include bank cheques and passbooks, cash vouchers, educational certificates, marriage certificates and machine-readable betting slips, amongst others.
The Group has expanded its security solution services to cybersecurity, security systems integration and other security products and services. The Group also operates a training academy that is certified as a Public Approved Training Organisation. The academy offers Workforce Skills Qualifications (WSQ) courses for security services.
The Group has a well-diversified clientele comprising more than 800 customers in various industries, including multinational corporations, financial institutions and government agencies.
Security
Guarding
100%
Soverus Pte Ltd
Security | Security | |
Technology | Cyber Security | |
Printing | ||
& Consultancy | ||
100% | 100% | 100% |
Secura Singapore | Secura Technology | Red Sentry |
& Consultancy | ||
Pte Ltd | Pte Ltd | |
Pte Ltd | ||
100% | 100% | 19% |
Secura Forms | Soverus Kingdom | Custodio |
Technologies | ||
Pte Ltd | Systems Pte Ltd | |
Pte Ltd | ||
30% | 100% | |
Secura Bangladesh | Secura Training | |
Academy Pte Ltd | ||
Ltd | ||
50% | ||
Foremost Secura | ||
Corporation | ||
50% | ||
Secura Foremost | ||
eMage Pte Ltd |
ANNUAL REPORT 2022 | 3 |
MESSAGE TO SHAREHOLDERS
Dear Shareholders
As the world gradually emerges from the pandemic with the reopening of borders and economy since late 2021, Singapore was similarly transitioning from pandemic to endemic stage with the easing of travel and social restrictions to lifting of all major restrictions in April 2022. The pandemic took everyone by surprise, but we have remained nimble to quickly adapt and adjust our strategies to navigate the resultant challenges and disruptions. Riding on the gradual recovery of the operating environment, Secura, underpinned by our resilient and comprehensive suite of security services, was able to report a credible set of results for the financial year ended 31 December 2022 ("FY2022").
Stable Financial Performance
The Group wrapped up the year with revenue increasing at a healthy 30.5% to $48.6 million compared to $37.3 million in the previous year ("FY2021"). This was largely from higher revenue contributions from Security Guarding and Security Technology & Consultancy segments as a result of new contracts awarded during the year.
Correspondingly, gross profit rose 16.0% to $4.9 million from $4.2 million in FY2021, with a slight 1.3 percentage points dip in gross profit margin to 10.1% compared to 11.4% in FY2021 due to an increase in the payroll of security officers arising from the adoption of the progressive wage model ("PWM").
FY2022 also saw the end of the Job Support Scheme ("JSS") grant in March, and together with the tapering of the Job Growth Incentive ("JGI") grant, other operating income declined 38.6% to $2.5 million from $4.1 million in FY2021. Share of results of joint ventures and associates which mainly relates to share of profits from the Group's investment in Secura Bangladesh Ltd, remained at a steady $0.4 million in FY2022. As a result, net profit attributable to owners of the Company came in at $1.3 million in FY2022 compared to $2.4 million in FY2021.
Resilient Business Segments
The Group's Security Guarding segment saw strong growth for the year with revenue rising 31.6% to $38.7 million from $29.4 million in FY2021. It remained the biggest contributor, accounting for 79.6% of total revenue. Profit for the segment on the other hand dipped to $1.7 million compared to $3.1 million in FY2021, largely due to the absence of JSS and reduction in JGI in FY2022.
As we continue to strengthen our brand equity and entrench ourselves as a high service quality and preferred security service provider, our early adoption and investment in technology and equipment have also played to our advantage. In particular, our state-of-the-art and fully Integrated Command Centre ("ICC"), fitted out with the latest equipment and advanced technology, is able to support our pursuit of longer tenure and higher premium security guarding contracts including outcome-based contracts. Since the move by the Singapore government agencies in mid-2020 to adopt outcome-based security contracts, we have also transitioned and refined our
security contracts to focus on expected performance levels, rather than output levels, which in the long term can resolve manpower issues and reduce costs.
Alongside these strategic focus, we managed to secure a number of security contracts during the year, including a 24-month $3.0 million contract with Sembcorp Industries Ltd, effective from August 2022, and our biggest outcome- based contract to date, a 48-month $64.7 million contract from the Ministry of Education, Singapore, effective from September 2022 with the option to extend for a further one year. With these wins, the Group closed the year with a healthy order book for its Security Guarding segment.
While manpower cost and the tight labour market remain a constant concern and widely experienced by the industry, our stringent cost management strategy and focus on higher premium and longer term contracts aid in defraying the upward pressure on manpower cost. With greater acceptance for remote surveillance and virtual patrolling, our inhouse ICC also gives us a competitive edge in our bid for outcome-based contracts as well as alleviates manpower issues.
As we continue to build a stable pool of security officers, our ongoing recruitment drive does not only look at the local market, we are also looking to recruit suitable candidates from Malaysia through collaboration with different agencies and participation in recruitment campaigns. To further support our recruitment, we have the advantage of our accredited inhouse training academy - Secura Training Academy, which provides training to new recruits as well as existing security officers who seek to upskill their capabilities or who are required to regularly retrain, due to new regulatory requirements.
For instance, with effect from 1 July 2023, all security officers must complete the Recognise Terrorist Threats training course before they can be deployed at any site. Our academy is certified to undertake this training which equips security officers with the skills and knowledge to recognise and deal with various terrorist threats. Additionally, we need to train our officers on Traffic Management before they can be deployed to any educational premises. With these additional courses, we expect to retrain over 5,000 security officers.
Our collaboration with GRAB was a fruitful experience on a social responsibility front. The rationale behind the collaboration was to offer security training courses to GRAB's driver-and-delivery partners, which will provide them an option to take on security guarding assignments under Secura and support their downtime during the pandemic period. Despite commencing the collaboration during the period when the operating environment was recovering, including the ride-hailing business, we managed to train and certify over 200 participants who are now armed with additional skills to take on security guarding assignments.
We will continue to explore suitable collaborations that will not only enhance our commitment to sustainability, but also allow us to foster long-term relationships with business partners as well as widen our talent pool.
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Disclaimer
Secura Group Ltd. published this content on 12 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2023 01:29:09 UTC.