InnoTek Limited Results for Fourth Quarter Ended 31 Dec 2009_250210

8/14/2019 InnoTek Limited Results for Fourth Quarter Ended 31 Dec 2009_250210

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InnoTek Limited( Company Reg. No. 199508431Z )______________________________________________________________________________________________________

PART 1 - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY ( Q1 , Q2 & Q3 ), HALF-

YEAR and FULL YEAR RESULTS

1.(a) An income statement (for the Group ) together with a comparative statement for the corresponding period ofthe immediately preceding financial year

CONSOLIDATED INCOME STATEMENTS (UNAUDITED)

For the Fourth Quarter ended 31 December 2009

2009 2008 2009 2008

S$'000 S$'000 % S$'000 S$'000 %

1(a)(ii)

92,747 111,535 (16.8) 361,473 421,559 (14.3)

1(a)(i)(a) (69,386) (93,326) (25.7) (283,959) (347,069) (18.2)

23,361 18,209 28.3 77,514 74,490 4.1

(2,064) (2,942) (29.8) (8,555) (10,844) (21.1)

1(a)(i)(b) (14,411) (15,061) (4.3) (55,259) (59,224) (6.7)

(275) (724) (62.0) (1,327) (2,455) (45.9)

1(a)(i)(c) (3,995) (6,163) NM (5,855) (6,261) (6.5)

(20,745) (24,890) (16.7) (70,996) (78,784) (9.9)

91 173 (47.4) 694 2,227 (68.8)

578 852 (32.2) 2,815 2,523 11.6

669 1,025 (34.7) 3,509 4,750 (26.1)

(4) (156) (97.4) 35 (548) NM

3,281 (5,812) NM 10,062 (92) NM

1(a)(i)(d) 316 (4,550) NM (615) (6,181) (90.1)

3,597 (10,362) NM 9,447 (6,273) NM

(845) 963 NM (2,874) 6,192 NM

(845) 963 NM (2,874) 6,192 NM

2,752 (9,399) NM 6,573 (81) NM

3,007 (9,954) NM 7,591 (7,031) NM

590 (408) NM 1,856 758 144.9

3,597 (10,362) NM 9,447 (6,273) NM

2,228 (8,958) NM 4,884 (827) NM

524 (441) NM 1,689 746 126.4

2,752 (9,399) NM 6,573 (81) NM

Basic Para 6 1.29 (4.26) NM 3.25 (3.00) NM

Diluted Para 6 1.28 (4.26) NM 3.24 (3.00) NM

NM denotes Not Meaningful

Other comprehensive (expense)/income , net of tax

Total comprehensive income/(loss) for the period

Total comprehensive income/(loss) attributable to :

Shareholders of the Company

Minority interests

Earning/(Loss) per share ( cents)

Minority interests

Shareholders of the Company

Foreign currency translation

Share of gain/(loss) of associate

Tax expense

Profit/(Loss) attributable to :

Other comprehensive income / (expense) :

Selling and distribution

Profit, net of tax before minority interest

(Reclassified)(Reclassified)

Other expenses

Administrative expense

Finance cost

Total other item of expenses

Other items of income

Interest Income

Other Income

Total other items of Income

31-Dec

Quarter Ended 12 months Ended

Note

YoY

Change

YoY

Change

31-Dec

Revenue

Group

Cost of sales

Gross Profit

Other items of expense

Profit before taxation and minority interest


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Notes to Group Profit and Loss Statement

1(a) (i ) Profit / (loss) for the period is arrived at after (charging) / crediting the following items :

2009 2008 2009 2008

Note S$'000 S$'000 S$'000 S$'000

(a) Included in cost of sales :

- Provision for obsolete inventories (146) (383) (898) (928)(b) Included in administrative expense :

- Employee Share Option expense (115) (35) (244) (312)

- Severance and end of contract payment (e) (2,303) - (2,303) -

(c) Details of other expenses

InnoTek

- Mark-to-market gain on investment securities ( f ) - (773) - 788

- Provision for discount for Put and Call Option receivables ( f ) - (372) - (372)

Fair value change for investment held for trading - (1,145) - 416

- Write-back of provision for warranties for sale of MPT ( f ) - 1,708 - 6,902

- Additional proceed from sale of MPT ( f ) - - - 272

Total relating to sale of MPT - 563 - 7,590MSF

- Impairment on investment in associates - (825) - (825)

- Property, plant and equipment impairment ( g ) (2,781) (1,710) (2,781) (1,710)

- Property, plant and equipment write-off - (3,168) - (3,546)

- Provision for relocation - (145) - (145)

- Allowance for doubtful trade receivables (883) (252) (1,385) (324)

Subtotal ( Provision ) / write-back (3,664) (5,537) (4,166) 1,040

- Foreign currency (loss) / gain (331) (626) (1,689) (7,301)

(3,995) (6,163) (5,855) (6,261)

(d) Tax expense

(e)

(f )

(g )

This relates to balance of the 10% shareholding in Magnecomp Precision Technologies Public Company Limited ("MPT") disposedoff on 15 January 2009.

Included an impairment loss of S$4.1 m illion for a subsidiary building offset by reversal of impairment loss for certain property, plantand equipment provided in 2008.

Included in the severance and end of contract payment is a provision of S$2.0 million for employee's end of contract payment forcertain subsidaries.

The effective tax rate for the period under review is lower than the corresponding period due to reversal of tax provision onoverseas interest income as specific tax exempt concession was given by Comptroller of Income Tax for overseas interest incomeearned before 21 Jan 2009 but remitted between 22 January 2009 and 21 January 2010. Also included in Q4'08 tax expense was afull provision to write-off S$2.4 million of deferred tax assets relating to a loss making subisidary.

Quarter Ended

31-Dec

12 months Ended

31-Dec

1(a) (ii) With the disposal of MPT in 2007, Mansfield Manufacturing Company Limited Group of Companies (MSF) became

the main operating subsidiary of the Company. In compliance with FRS 1 Presentation of Financial Statements, the

InnoTek Group profit and loss accounts have been reclassified with effect from 1 January 2009 to enable financial

reporting by function of expense, which more accurately reflect the nature of MSFs operations. Similarly, prior

year comparative numbers have been reclassified to conform with current years presentation.

The revised FRS 1 also requires all items of income and expenses (including those accountable for directly in

equity)to be presented in the Statement of Comprehensive Income for annual periods beginning on or after 1

January 2009.


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1(b) ( i ) . A balance sheet ( for the issuer and the Group ) , together with a comparative statement as at the endof the immediately preceding financial year

Balance Sheets (Unaudited)

As at As at As at As at

31-Dec-09 31-Dec-08 31-Dec-09 31-Dec-08

Note S$'000 S$'000 S$'000 S$'000

96,991 96,991 96,991 96,991

(7,028) (7,028) (7,028) (7,028)

3,524 3,351 3,524 3,351

107,135 111,144 39,768 53,032

(288) 2,419 - -

200,334 206,877 133,255 146,346

6,905 5,377 - -

207,239 212,254 133,255 146,346

104,956 122,896 76 -

4,234 4,633 - -

550 2,491 - -

2,276 2,079 - -

- 544 - -

138 141 - -

- - 47,061 47,061

291 257 - -

2,634 2,634 2,634 2,634

115,079 135,675 49,771 49,695

Current assets

Cash and cash equivalents A 109,278 93,058 75,922 59,279

Trade receivables B 82,726 87,094 406 584

Other receivables and deposits D 8,400 13,561 62 84

Tax recoverable 561 42 - -

Investment securities A - 23,384 - 23,384

Prepayments 426 655 - -

Inventories C 29,710 36,765 - -

Loan to subsidiaries - - 9,005 16,615

231,101 254,559 85,395 99,946

Bank loans A 7,222 24,074 - -

Finance lease 167 70 - -

Trust receipts / bill payable 10,087 10,231 - -

Bank overdrafts 3,735 4,067 - -

Interest-bearing loans and borrowings 1(b)(ii) 21,211 38,442 - -

Trade payables B 66,513 76,800 - -

Other payables and accruals 24,036 31,434 436 997

Provisions E 2,000 - - -

Tax payable 2,107 2,121 1,384 2,104

115,867 148,797 1,820 3,101

115,234 105,762 83,575 96,845

Non-current LiabilitiesBank loans A 21,513 26,982 - -

Finance lease 68 53 - -

Interest-bearing loans and borrowings 1(b)(ii) 21,581 27,035 - -

Deferred tax liabilities 1,493 2,148 91 194

23,074 29,183 91 194

207,239 212,254 133,255 146,346

Company

Share Option reserve

Total Equity

Share Capital

Treasury shares

Group

Revenue reserves

Translation reserves

Intangible assets

Minority interests

Non-current Assets

Property, plant and equipment

Prepaid land lease payment

Deposit paid for purchases of property, plant and

equipment

Other receivables

Prepayments

Current liabilities

Net current Assets

Net Assets

Investment in subsidiaries

Investment in associate

Other investments


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Note to Group Balance Sheet

A Increase in cash was mainly due to proceeds from disposal of investment securities in January 2009. Theincrease in cash was mitigated by repayment of bank loans and dividend payment to ordinary shareholders of

the Company in May 2009.

B Lower sales in Q409 compared to Q408 resulted in lower trade receivables and payable as at 31December 2009 compared to 31 December 2008.

C Lower sales and raw material price in Q409 resulted in lower inventory as at 31 December 2009 compared

to 31 December 2008.

D Reduce mainly from a refund of deposit in January 2009 due to rebate by China Government for a land

purchase.

E This relates to provision for end of contract payments in accordance with the employment policies of certain

subsidiaries.

1b (ii) Aggregate amount of Group's borrowings and debt securities

As at As at

31-Dec-09 31-Dec-08

S$'000 S$'000

Amount repayable in one year or less, on demand

- Secured 167 70

- Unsecured 21,044 38,372

21,211 38,442

Amount repayable after one year

- Secured 68 53

- Unsecured 21,513 26,982

21,581 27,035

Total 42,792 65,477

Details of any collaterals

The secured borrowings relate to finance leases which are secured on relevant equipment under the

finance lease. All other bank borrowings, bank overdraft and trust receipts are either unsecured or

secured by corporate guarantee by the Company and its subsidiaries.


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1(c) A cash flow statement ( for the Group) , together with a comparative statement for the corresponding periodof the immediately preceding financial year

CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED)

Note

2009

S$'000

2008

S$'000

2009

S$'000

2008

S$'000

(Reclassified) (Reclassified)

3,281 (5,812) 10,062 (92)

F 8,443 11,848 26,510 28,832

11,724 6,036 36,572 28,740

4,523 21,103 3,991 4,222

16,247 27,139 40,563 32,962

, , ,

15,399 24,655 38,210 29,096

(2,940) (25,478) (13,500) (44,685)

1,425 (3,471) 1,934 (2,913)

493 384 707 432

- - - (1,051)

- 742 - 742

- - - (2,967)

- - - (68)

(1,022) (27,823) (10,859) (50,510)

- (109) - (13,625)

- - - 343

1,066 15,482 (144) 26,457

(3,911) (4,219) (22,322) (32,888)

- - 23,384 -

160 (38) 115 (295)

- - (11,671) (23,506)(161) - (161) -

(2,846) 11,116 (10,799) (43,514)

11,531 7,948 16,552 (64,928)

94,012 81,043 88,991 153,919

G 105,543 88,991 105,543 88,991

Profit/(loss) before tax and minority interests ("MI")

31-Dec

Net increase/ (decrease) in cash and cash equivalent

31-Dec

Cash flows provided by operations before reinvesting in

working capitals

Working capital changes , excluding changes relating to cash

Cash generated from/(used in) operating activities

Net interest and income tax paid

Net cash from operating activities

Quarter Ended 12 months Ended

Deposit refund/(paid) for property, plant and equipment

Purchase of property, plant and equipment

Cash flows from operating activities :

GROUP

Adjustments for non-cash items

Proceeds on sale of fixed assets

Proceeds from sale of investment

Acquisition of minority interests

Investment in associate

Net cash outflow from disposal of subsidiaries

Net Increase/(Repayment) of finance lease

Dividend paid to subsidiary shareholderDividend paid to ordinary shareholder

Cash and cash equivalents as at end of period

Cash and cash equivalents as at beginning of period

Proceeds / (Repayment) from short and long term financing

Bank loan repayment

Proceed from investment securities

Purchase of treasury shares

Net cash (used in) investing activities

Net cash from financing activities

Proceeds from issuance of ordinary shares

Net cash from / (used in) investing activities :

Net cash (used in) / generated from financing activities


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NOTES TO THE CONSOLIDATED CASH FLOW STATEMENTS (UNAUDITED)

F Details of adjustments for non-cash items as follows :

GROUP 2009S$'0002008

S$'0002009

S$'0002008

S$'000

(Reclassified) (Reclassified)

4,815 4,362 21,160 18,273

25 18 103 18

(68) (63) 117 (63)

- (260) - (260)

115 66 244 312

883 659 1,385 324

275 724 1,327 2,455

(91) (172) (694) (2,226)

146 642 898 928

- (416) - (416)

- 3,229 - 3,546

2,781 1,710 2,781 1,710

(442) 368 (776) 2,858

- 825 - 825

4 156 (35) 548

Total 8,443 11,848 26,510 28,832

Depreciation expense

Stock option expense

Allowance for doubtful trade receivables

31-Dec

Gain on disposal of other investment

12 months EndedQuarter Ended

Share of results of associates

Currency realignment

Fair value change for investment held for trading

Impairment loss/(written back) of property, plant and

equipment

Impairment loss on investment in associate

31-Dec

Provision for obsolete inventories

Property, plant and equipment written off

Amortisation expense

Loss/(gain) on disposal of property,plant and equipment

Interest income

Interest expense

G Cash and cash equivalents comprises :

2009 2008

S$'000 S$'000

34,272 34,34375,006 58,715

109,278 93,058

(3,735) (4,067)

105,543 88,991

As at 31 Dec

GROUP

Cash and cash equivalents at end of period

Cash and bank balances

Other Fixed deposits

Less : Bank overdrafts

Cash and bank balances per Balance Sheet


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1(d)(i) A statement ( for the issuer and the Group ) showing either (i) all changes in equity or (ii) changes in equityarising from capitalization issues and distributions to shareholders , together with a comparative statement for period of the immediately preceding financial year

Statement of changes in equity

S

hare

Capital

Treasury

Shares

Share

Option

Reserve

Retained

Earnings

Foreign

Currency

Translation

Reserve

Total

Other

Reserve Total

Mino

Inter

S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'0

2009

96,991 (7,028) 3,351 111,144 2,419 116,914 206,877 5

- - - 7,591 (2,707) 4,884 4,884

- - - - - - -

- - (71) 71 - - -

- - 244 - - 244 244

- - - (11,671) - (11,671) (11,671)

96,991 (7,028) 3,524 107,135 (288) 110,371 200,334 6

GROUP

Attributable to shareholders of the Company

Balance at 1 January 2009

Expiry of employee share options

Total comprehensive income for 2009

Dividend to subsidiary shareholder

Dividends on ordinary shares

Balance at 31 December 2009

Share Option expense accrued


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Statement of changes in equity ( Cont'd )

S

hare

Capital

Treasury

Shares

ShareOption

Reserve

Retained

Earnings

Foreign

CurrencyTranslation

reserve Others

TotalOther

reserve To

S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'0

2008

96,648 (6,381) 3,049 142,302 (3,785) (73) 141,493 23

- - - (7,031) 6,204 - (827)

- 12,978 - (743) - - (743) 12

- - - (73) - 73 -

- - - 185 - - 185

343 - - - - - -

- - (10) 10 - - -

- - 312 - - - 312

- (13,625) - - - - - (13

- - - (23,506) - - (23,506) (23

96,991 (7,028) 3,351 111,144 2,419 - 116,914 206

GROUP

Attributable to shareholders of the Company


Expiry of empolyee share options

Total comprehensive income for the year 2008

Reclassification

Utilisation of Treasury shares for acquisition of shares from

minority shareholders of MSF



Acquisition of minority shareholders of MSF

New shares issued under Employee Share Option Plan

Share Option expense accrued

Purchase of Treasury Shares


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Statement of changes in equity ( Cont'd )

I

ssued

Capital

Tresury

Shares

Share Option

Reserve

Retained

Earnings

Tot

ReS$'000 S$'000 S$'000 S$'000 S

96,991 (7,028) 3,351 53,032

- - - (1,664)

- - 244 -

- - (71) 71

- - - (11,671)

96,991 (7,028) 3,524 39,768

96,648 (6,381) 3,049 77,222

- - - 59

- (13,625) - -

- 12,978 - (743)

343 - - -

- - 302 -

- - - (23,506)

96,991 (7,028) 3,351 53,032

Utilisation of Treasury shares for acquisition of minority interest

in MSF

New shares issued under Employee Share Option Plan

Dividend on ordinary shares

2009

Total comprehensive income for year 2008

Purchase of Treasury Shares

2008


COMPANY



Total comprehensive income for year 2009

Share Option expense reserve


Expiry of employee share options

Share Option expense reserve



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1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, sharebuy-back , exercise of share options or warrants , conversion of other issues of equity securities , issueof share for cash or as consideration for acquisition or for any purpose since the end of the previousperiod reported on. State also the number of shares that may be issued on conversion of all theoutstanding convertibles , as well as the number of shares held as treasury shares, if any, against the totalnumber of issued shares excluding treasury shares of the issuer, as at the end of the current financialperiod reported on and as at the end of the corresponding period of the immediately precedingfinancial year

(a) Share Capital

Number of ordinary shares as at 31 December 2009 are 243,468,428

As at

31/12/09

As at

31/12/08

Options granted under the InnoTek Employees' Share Option Plan 1 4,023,000 4,939,000

Opt ions granted under the InnoTek Employees' Share Option Scheme I I ** 3,188,000 -

7,211,000 4,939,000

**

Number of shares that may be issued on conversion of all outstanding options are as follows:-

On 10 March 2009 , 3,840,000 options were granted to the Group's and the Company's empolyees under the

"InnoTek Employee's Share Option Scheme II " plan which was approved by shareholders at the Extraordinary

General Meeting held on 30 April 2008. The option price for the grant was $0.19 which was based on the average

price of the last dealt prices of shares traded over five consecutive market days immediately prior to the date ofgrant of options. Net quantities outstanding after employee resignation as at 31 December 2009 was 3,188,000.

(b) Treasury Shares

No new Treasury shares were acquired in Q4'09. There were 10,061,000 Treasury Shares as at 31 December 2009.

1(d)(iii) To show the total number of issued shares excluding Treasury Shares as at the end of the current

financial period and as at the end of the immediately preceding year.

No of

shares

'000 $'000

No of

shares

'000 $'000

Total number of issued shares at the end of period 243,468 96,991 243,468 96,991

(10,061) (7,028) (10,061) (7,028)

Net number of issued shares at the end of period 233,407 89,963 233,407 89,963

As at 31/12/08

Number of Treasury Shares at the end of period

As at 31/12/09

1(d)(iv) A statement showing all sales , transfer , disposal , cancellation and/or use of Treasury Shares as at the end ofthe current financial period reported on.

None

2. Whether the figures have been audited , or reviewed and in accordance with the standard (e.g. The SingaporeStandard on Auditing 910 ( Engagement to Review Financial Statements ) , or an equivalent standard )

The figures have not been audited or reviewed by auditors.

3. Whether the figures have been audited , or reviewed , the auditor's report ( including any qualifications oremphasis of matter)

Not Applicable


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4. Whether the same accounting policies and methods of computation as in the issuers most recentlyaudited annual financial statements have been applied

The Group adopted the following new/revised Financial Reporting Standards (FRS) that are relevant to the Group andeffective for annual periods beginning on or 1 January 2009 :-

FRS 1 (revised 2008) Presentation of Financial StatementsFRS 108 Operating Segments

Please refer to 1(a)(ii) for reclassification of the Consolidated Income Statements to function of expenses and the inclusionof the Statement of Comprehensive Income under the revised FRS 1.

FRS 108 replaces FRS 14 Segment Reporting. It requires identification and reporting of operating segments based oninternal reports that are regularly reviewed by the Groups chief operating decision maker in order to allocate resources tothe segment and to assess its performance.

5. Whether there are any changes in the accounting policies and method of computation , including anyrequiredby an accounting standard, what has changed, as well as the reasons for, and the effect of, thechange

None

6. Earnings per ordinary share of the group for the current period reported on and the correspondingperiod of the immediately preceding financial year , after deducting any provision for preference dividends.

2009 2008 2009 2008

S'000 S'000 S'000 S'000

(i)

- Earning per share 1.29 (4.26) 3.25 (3.00)

Weighted average number of shares ( '000) 233,407 233,913 ^ 233,407 234,090 ^

(ii)

- Earning per share 1.28 (4.26) 3.24 (3.00)

Weighted average number of shares ( '000) 235,176 233,913 ^ 234,559 234,090 ^

^ There is no potential dilutive earning per share for the year 2008 and quarter ended 31 December 2008 as the Group was in a loss

position.

On a fully diluted basis ( in cents )

12 Months Ended

31 December

Based on the weighted average number of shares ( in cents )

Earnings per ordinary share of the Group based on net profit

attributable to the shareholders of the Company :

Quarter Ended

31 December

7. Net asset value (for the issuer and Group) per ordinary share based on the total number of issued shares

excluding treasury shares of the issuer at the end of the (a) current period reported on; and (b) immediatelypreceding financial year

As at As at As at As at

31/12/2009 31/12/2008 31/12/2009 31/12/2008

85.8 cents 88.6 cents 57.1 cents 62.7 cents

Group Company

Net asset backing per ordinary share based on the total

number of issued share excluding treasury shares as at

the end of the period reported on

Reduction of Net Assets per share for both Group and Company was due to payment of dividend of 5 cents per shareamounted to S$11.7 million in May 2009.


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8. A review of the performance of the group, to the extent necessary for a reasonable understanding of thegroup business. The review must discuss any significant factors that affected the turnover costs, andearnings of the group for the current financial period reported on, including ( where applicable ) seasonalor cyclical factors. It must also discuss any material factors that affected the cash flow, working capital,assets or liabilities of the group during the current financial period reported on

(A) Quarter ended 31 December 2009 (Q409)

Turnover

92,747 111,535 (18,788) (16.8)

Net Profit 3,007 (9,954) 12,961 NM

3,158 (8,560) 11,718 NM

(151) (1,394) 1,243 89.2

Basic EPS (cents) 1.29 (4.26) 5.55 NM

NM denotes not meaningful

Corporate

MSF

MSF

Q409

S$'000

Changes

%

Q408

S$'000

Changes

S$'000

For the October-December 2009 quarter (Q409), the Group recorded turnover of S$92.7 million, a decline of S$18.8

million or 16.8% compared to S$111.5 million in Q408. This was due to lower sales recorded by its core subsidiaryMansfield Manufacturing Company Limited (MSF) resulting from lower demand for flat TVs and office automation

equipments.

Despite lower turnover, the Group turned around from a loss of S$9.9 million in Q408 to a profit of S$3.0 million in Q409.

The strong performance was mainly attributed to the S$3.2 million profit contribution from MSF in Q409, reversing the

loss of S$8.6 million recorded in Q408, which was offset by a marginal loss of S$0.2 million recorded by the Company.

MSF profit was S$3.2 million, an increase of S$11.7 million from a loss of S$8.6 million in Q408 despite a drop in

revenue of S$18.8 million in Q409 compared to Q408. The improved performance is due largely to lower impairment

charges of S$4.7 million and positive contribution of S$7.0 million from lower material costs, continuous improvement in

operating efficiencies and cost cutting measures undertaken in 2009.

Segmentally, turnover from Components, assembly and tooling businesses (collectively referred to as Precision

Components and Sub-assembly segment) reduced by S$15.6 million to S$83.3 million in Q409 from S$98.9 million in

Q408 due mainly to lower demand for LCD TVs and related products. Revenue for Frame business also reduced S$3.2

million to S$9.4 million in Q409 from S$12.6 million in Q408 mainly due to lower demand for printing equipment.

The loss recorded by the Company was S$1.2 million lower than Q408 due to lower tax expense of S$2.0 million

resulting from write-back of tax provision on unremitted overseas interest income. During the year, specific tax exempt

was given by the Singapore tax authority on remittance of overseas interest income earned prior to 2008 and remitted to

Singapore in 2009. This was offset by lower interest income of S$0.3 million and higher foreign exchange loss of S$0.5

million in Q409.


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(B) 12 months ended 31 December 2009 (FY09)

Turnover

361,473 421,559 (60,086) (14.3)

Net Profit 7,591 (7,031) 14,622 NM

9,255 (6,124) 15,379 NM

(1,664) (907) (757) (83.5)

Basic EPS (cents) 3.25 (3.00) 6.25 NM

NM denotes not meaningful

MSF

MSF

Changes

%

FY08

S$'000

Changes

S$'000

FY09

S$'000

Corporate

For the year ended 31 December 2009 (FY09), Groups turnover declined S$60.1 million or 14.3% to S$361.5 million

from S$421.6 million mainly due to lower stamping and assembly sales recorded by core subsidiary Mansfield

Manufacturing Company Limited (MSF) as a result of lower global demand for flat panel TVs.

In spite of lower revenue, net profit for the Group increased S$14.6 million to S$7.6 million in FY09 from a loss of S$7.0

million in FY08. The net profit in FY09 was mainly attributed to the profit of S$9.3 million achieved by MSF offset by a

loss of S$1.7 million recorded by the Company.

MSF reversed from a loss of S$6.1 million in FY08 to a net profit of S$9.3 million in FY09, due mainly to lower material

price and impairment charges, better cost management and improvements in operating efficiency.

Segmentally, revenue reduced across all business segments. The reduction came mainly from the Precision Components

and Sub-assembly segment, which reduced by S$53.0 million to S$323.6 million from S$376.6 million in FY08 due

mainly to lower demand for LCD TVs and related products. Revenue from Frame business also reduced due to lower

demand for printing equipment.

Corporate loss of S$1.7 million was due largely to exchange loss on the back of weaker US$, mitigated by write-back of

deferred tax provision on exemption given by Comptroller of Income Tax on remittance of overseas interest income in

2009.

9. A forecast , or projected statement , has been previously disclosed to shareholders , any variance betweenit and the actual results

None

10. A commentary at the date of the announcement of the competitive conditions of the industry inwhich the group operates and any known factors or events that may affect the group in thenext reporting period and the next 12 months

The Directors expect the business outlook to improve in FY 2010 with the stabilization of the global economic and

business environment. The Group will continue to improve on operational efficiencies and cost-controls. Barring any

unforeseen circumstances and in the absence of any deterioration of business conditions, the Directors expect the Groupperformance for Q110 to be better than that of Q109 and performance for FY 2010 will improve over FY 2009.

With regard to the Groups long-term growth strategy, the Company will continue to proactively explore appropriate

merger and acquisitions opportunities. The Group will continue to maintain its cautious stance, focusing on earnings-

accretive businesses, and stringently evaluate feasible investment proposals.


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11. Dividend

(a) Current Financial period Reported On

Any dividend declared for the present financial period ? Yes

Name of dividend Proposed Final One-Tier Tax Exempt

Dividend Type CashDividend rate 5.0 cents per ordinary share

Tax rate NIL

(b) Corresponding period of the Immediate Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year ? Yes

Name of dividend Final One-Tier Tax Exempt

Dividend Type Cash

Dividend rate 5.0 cents per ordinary share

Tax rate NIL

(c) Date payable

Date payable for the proposed final dividend to be announced at a later date.

(d) Books closing date

Books closing date for proposed final dividend to be announced at a later date.

12. If no dividend has been declared / recommended , a statement to that effect

Not Applicable


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17

14. In the review of performance, the factors leading to any material changes in contributions toturnover and earnings by the business or geographical segments.

None

15. A breakdown of sales

Latest

Period

Previous

Period Change

S$'000 S$'000 %

(a) Sales reported for first half year 176,698 201,853 (12.5)

(b) Profit after tax before minority interest reported for first half year 4,279 3,657 17.0

(c) Sales reported for second half year 184,775 219,706 (15.9)

(d) Profit/(loss) after tax before minority interest reported for second half year 5,168 (9,930) NM

16. A breakdown of the total annual dividend ( in dollar value ) for the issuer's latest full year and its previous

full year.

Latest Full

Year

Previous

Full YearS$'000 S$'000

Ordinary 11,671 23,506

Preference - -

Total 11,671 23,506

17. Interested Person Transactions Rule 920(1)(a)(i) An issuer must announce the aggregate value oftransactions conducted pursuant to the general mandate for interested person transactions for thefinancial period which it is required to report on pursuant to Rule 705.

None

18. STATEMENT PURSUANT TO SGX LISTING RULE 705(5) OF THE LISTING MANUAL

The directors confirmed that to the best of their knowledge, nothing has come to the attention of the Board of Directors

of the Company which may render the fourth quarter financial results of the Company and of the Group for the

year ended 31 December 2009 to be materially false or misleading.

Signed by Robert Sebastiaan Lette, Chairman and Yong Kok Hoon, Managing Director

BY ORDER OF THE BOARD

Yong Kok Hoon

Managing Director

25 February 2010

Documents

InnoTek Limited Results for Fourth Quarter Ended 31 Dec 2009_250210