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ZICOM GROUP LIMITED — Capital/Financing Update 2011
Aug 4, 2011
66117_rns_2011-08-04_7640d28b-e2fa-44db-9b14-bac3c629b571.pdf
Capital/Financing Update
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ABN 62 009 816 871 Zicom Group Limited
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38 Goodman Place, Murarrie, Queensland 4172 • Tel: (07) 3908 6088 • Fax: (07) 3390 6898
5 August 2011
Company Announcements Office Australian Securities Exchange Level 6, 20 Bridge Street SYDNEY, NSW 2000
Profit Guidance Full Year to 30 June 2011
Your board is pleased to advise that from preliminary accounts available, subject to adjustments that may arise from audit review, the Group is expected to achieve the following results for the year ended 30 June 2011:-
Revenue
Consolidated revenue for this financial year is expected to achieve S$146m exceeding the revenue of S$107.69m in the previous corresponding year by 36%.
Net Profits
Net Profits after tax for this financial year are expected to be between S$13-14m exceeding the net profits after tax of S$10m in the previous corresponding year by 30-40%.
The results for second half year have been weaker than the first half for the following reasons:-
- a) The Group’s orders for deck machinery had been affected by the slackened ship building orders for offshore vessels during the recent global financial crisis. Demand for offshore vessels generally precedes demand for our deck machinery by 1-2 years. We expect to continue with slackened demand for our deck machinery in the next financial year.
However, strong world-wide resurgence in demand for offshore rigs particularly for deep seas exploration and production in the last 9 months has increased demand for deep seas offshore vessels. A gradual build-up in demand for our deck machinery has emerged. We expect this to gain momentum in the next 12-18 months.
- b) The slack in our deck machinery was expected to be taken up by the substantial orders received by us for oil and gas turnkey projects in hand. However, delays in implementing these projects within the second half year caused by slow engineering approvals, had caused the contribution from these projects to be pushed into the next financial year.
We are confident that in the medium to long term, incremental growth in our offshore marine oil and gas segment will be maintained.
- c) The US$ had been extremely volatile in the second half year and had, in part, adversely affected our results. Our hedging policy had kept the impact to the minimum.
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Company Announcements Office Australian Securities Exchange
Although the global economy continues to face tough challenges and uncertainties ahead, our Group’s businesses remain robust and new investments made are proving promising. We are therefore confident of maintaining growth in the coming year.
Yours faithfully ZICOM GROUP LIMITED
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Sim Giok Lak Chairman