| Singapore, 24 February 2003 – Mainboard listed CSE Global Ltd (“CSE”) achieved an increase in profit after tax by $5.2 million (43.8%) to $17.3 million in FY2003 from $12.1 million in FY2002. This profit after tax includes a one-time gain of $3.1 million from the sale of eBworx shares, a one-time charge of $0.5 million of restructuring costs and a project cost overrun of $0.4 million. For the same period, CSE recorded an increase in revenue of $25.7 million (17.9%) to $169.0 million in FY2003 from $143.3 million in FY2002.
Based on the set of results, CSE proposed a dividend of $0.02 per share for FY2003 made up from a final dividend of $0.01 per share and a special dividend of $0.01 per share. This is a 100% increase in dividend compared to FY2002.
CSE’s overseas operations continued to contribute substantially, 88.6% for its revenues and 97.2% for its profit before tax, goodwill amortization and minority interest. The contributions by the geographical regions of Singapore, Asia, Europe/Middle East/Africa and The Americas are 11.4%, 8.3%, 18.5% and 61.8% for revenue and 2.8%, 32.1%, 15.9% and 49.2% for profit before tax, goodwill amortization and minority interest respectively.
CSE’s two divisions, Industrial business unit and IT Consulting business unit, contributed $156.5 million (92.6%) and $12.5 million (7.4%) to the revenue and $18.7 million (80.0%) and $4.7 million (20.0%) to the profit before tax, goodwill amortization and minority interest respectively.
For the Industrial business unit, operations in its existing markets of US, UK and South East Asia had remained stable while business in Middle East and Africa had improved. The division executed several initiatives to expand its global footprint in FY2003. Besides setting up offices in Carmen (Mexico), Dubai (United Arabs Emirates), Tehran (Iran), Port-Harcourt (Nigeria) and Shanghai (China), it also acquired TransTel Engineering Pte Ltd, a systems integrator in Singapore, providing turnkey telecommunication network solution for infrastructure projects in the Oil and Gas and Energy industries, both onshore and offshore in July and TTC s.r.o, a systems integrator in Slovakia, developing and marketing a pipeline simulation, monitoring, management and leak detection system for oil and gas pipelines in October.
CSE continued to re-organise of its IT Consulting business unit in FY2003. It continue to rein in cost and focus on documentation and workflow projects, providing solutions to the financial services industry and transportation systems. In November, it listed its associated company eBworx Berhad, a digital commerce solution provider based in Malaysia, on MESDAQ in Malaysia.
For FY2003, CSE generated a cash inflow of $15.0 million, comprising $10.6 million from operations and $4.4 million from partial divestment of an associated company. CSE had a net bank borrowing of $23.0 million as at 31 December 2003, a reduction of $4.0 million from S$27.0 million as at 31 December 2002. CSE ended the period with a Shareholders’ Fund before minority interest of $54.2 million and a net bank borrowing of $23.0 million giving it a net gearing of 0.42 times compared to 0.77 times at the end of FY2002.
CSE recorded a 30.2% increase in new order recorded in FY2003 of $188.6 million compared with $144.8 million received in FY2002. The Industrial business unit, with its global footprint, received S$185.5 million in the year, a 46.1% increase over the previous year of S$127.0 million.
The outstanding order at the end of FY2003 was $93.2 million, an increase of 13.2% over the outstanding order at the end of FY2002 of $82.3 million. The Industrial business unit posted a 54.3% increase in outstanding order at the end of FY2003 to $82.4 million from $53.4 million at the end of FY2002. The IT Consulting business unit show a 46.7% decline in outstanding order at the end of FY2003 to $10.8 million from $20.2 million at the end of FY2002.
CSE’s outlook continues to be positive as prospects for new contracts remain at healthy levels. Based on the current outlook and baring unforeseen circumstances, CSE’s performance will be better for FY2004 compare to FY2003.
CSE Global Limited is a global system integrator listed on the main board of the Singapore Exchange (SGX: CSE Global), operating in the Americas, Europe, the Middle East, Africa and Asia. Its 700 employees are spread over 17 countreis, CSE provides state-of-the art, cost-effective total integrated industrial automation and information technology solutions to clients globally in the energy (Oil & Gas/Power), chemical/petrochemical, water and telemetry, healthcare and public sectors. Visit www.cse-global.com for more information.
Contact information
CSE Global Limited
Lim Boon Kheng @ boonkheng@cse.com.sg.
Tel : 9735-2618 |
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