NSL LTD

(Reg. no.: 196100107C)

Third Quarter Financial Statements Announcement

The figures have not been audited

PART I - 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 of the immediately preceding financial year

THE GROUP

Quarter ended 30 September 9 months ended 30 September

Note

2018 2017 Change

2018 2017 Change

S$'000 S$'000 %

S$'000 S$'000 %

Continuing operations

Sales

88,387

80,816

9

290,134

250,439

16

Cost of sales

(79,194)

(75,228)

5

(266,865)

(228,348)

17

Gross profit

(2)

9,193

5,588

65

23,269

22,091

5

Other income

(3)

1,870

2,319

(19)

9,621

9,109

6

Other gains and losses

(4)

142

(550)

n/m

(1,742)

2,420

n/m

Distribution costs

(5)

(3,465)

(2,967)

17

(9,929)

(9,003)

10

Administrative expenses

(6)

(8,219)

(7,423)

11

(25,052)

(22,941)

9

Finance costs

(7)

(72)

(137)

(47)

(231)

(618)

(63)

Share of results of associated companies, net of tax

(8)

(40)

(188)

(79)

(564)

(733)

(23)

(Loss) / Profit before income tax

(1)

(591)

(3,358)

(82)

(4,628)

325

n/m

Income tax expense

(9)

(678)

472

n/m

(1,256)

(76)

n/m

Total (loss) / profit for the financial period

(1,269)

(2,886)

(56)

(5,884)

249

n/m

Attributable to:

Equity holders of the Company

(1,136)

(2,692)

(58)

(5,888)

876

n/m

Non-controlling interest

(133)

(194)

(31)

4

(627)

n/m

(1,269)

(2,886)

(56)

(5,884)

249

n/m

Basic and fully diluted earnings per share (cents)

(0.30)

(0.72)

(58)

(1.58)

0.23

n/m

n/m: not meaningful

1

NSL LTD

(Reg. no.: 196100107C)

Notes to the Group's Income Statement

  • (1) (Loss) / profit before income tax is arrived at after crediting / (charging) the following items:

    THE GROUP

    Note

    Dividend income

    (i)

    5

    Interest income

    (ii)

    1,086

    Amortisation of intangible assets

    (iii)

    (627)

    Depreciation of property, plant and equipment

    (iv)

    (3,726)

    Allowance for stocks obsolescence, net

    (22)

    Write down of inventories to net realisable value, net

    (v)

    (278)

    (Allowance) / write back of allowance of impairment

    for trade receivables, net

    (vi)

    (281)

    Amortisation of deferred income

    54

    2018

    2017

    S$'000

    S$'000

    -

    1,038

    1,909

    1,132

    3,260

    3,856

    (154)

    (1,411)

    (450)

    (3,110)

    (10,488)

    (9,337)

    -

    (34)

    -

    -

    (278)

    (570)

    49

    (731)

    327

    56

    183

    170

    9 months ended 30 September 2018 2017

    Quarter ended 30 September

    S$'000 S$'000

    • (i) Lower dividend income in 9M-2018 was due to lower dividend income recorded by the Company from non-current financial assets.

    • (ii) Decrease in 9M-2018 was due to lower interest income recorded by the Company as a result of lower cash balances.

    • (iii) Mainly arose from additions of intangible assets in the Precast and Prefabricated Bathroom Unit ("PBU") division in Malaysia and Environmental Services division.

    • (iv) Mainly attributable to the precast operations in Malaysia.

    • (v) Increase in 3Q-2018 was attributable to write down of finished goods in the Dubai precast operation.

    • (vi) Mainly attributable to Singapore precast operation and Environmental Services division.

  • (2) Cost of sales

    Gross profit

    The increase in gross profit for 3Q-2018 was due mainly to higher revenue and improved gross profit margin, mostly from the Singapore and Malaysia precast operations and the waste treatment business.

  • (3) Other income

    The decrease for 3Q-2018 was due mainly to lower service income and lower interest income from lower cash balance.

  • (4) Other gains and losses

THE GROUP

Quarter ended 30

9 months ended 30

September

2018

2017

S$'000

S$'000

Fair value gains on derivative financial instruments

-

-

7

Currency exchange loss - net

(100)

(103)

(507)

(846)

Insurance claim

165

-

965

1,049

Gain on disposal of investment properties

-

(11)

-

3,568

Property, plant and equipment

- Gain / (loss) on disposal and write-off, net

199

(23)

(155)

(13)

- Impairment, net

-

-

(512)

(758)

Plant closure and restructuring costs

11

-

(2,160)

-

Gain / (loss) on disposal of an associated company

(80)

-

680

-

Others

(53)

(413)

(53)

(587)

142

(550)

(1,742)

2,420

-

September 2018 2017

S$'000 S$'000

2

NSL LTD

(Reg. no.: 196100107C)

Notes to the Group's Income Statement (continued)

  • (5) Distribution costs

    The increase was attributable to the precast operation in Malaysia and the Environmental Services division, in line with higher sales.

  • (6) Administrative expenses

    The increase in 3Q-18 was attributable to an increase in staff costs and allowance for doubtful trade debts.

  • (7) Finance costs

    The decrease in finance costs was attributable to a reduction in average borrowings during the respective periods.

  • (8) Share of results of associated companies, net of tax

    The variance in 3Q-2018 was due largely to the share of profits of associate Salzgitter Maschinenbau AG ("SMAG"), of which the Company owns 30% non-controlling equity stake upon completion of the proposed Share Swap which was announced on 13 February 2018. The transaction was completed in 2Q-2018.

  • (9) Income tax expense

THE GROUP

Note

Quarter ended

9 months ended

30 September

30 September

2018 2017

2018 2017

Continuing Operations

Taxation (charge) / credit for the financial period comprises:

S$'000

S$'000

S$'000

S$'000

- Current period taxation

(i)

(678)

522

(1,270)

(1)

- (Under) / over-provision in respect of prior years

(ii)

-

(50)

14

(75)

(678)

472

(1,256)

(76)

  • (i) Tax expense increased due mainly to higher pre-tax contribution from our PBU unit in Finland. The effective tax rate of the Group was higher than the Singapore corporate tax rate due mainly to losses incurred by certain Group companies which could not be set off against the profits earned by other companies in the Group.

  • (ii) Over-provision in respect of prior years in 9M-2018 comprised mainly of reversal of deferred tax liabilities.

3

NSL LTD

(Reg. no.: 196100107C)

Statement of Comprehensive Income for Period ended 30 September 2018

Total (loss) / profit for the financial periodOther comprehensive income:

Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations

- (Losses) / gains arising during the period

Gains / (losses) arising from available-for-sale financial assets

Share of other comprehensive losses of associated companies

Income tax relating to components of other comprehensive incomeItems that will not be reclassified subsequently to profit or loss: Gains arising from financial assets at FVOCI*

Other comprehensive (losses) / gains for the period, net of tax

Total comprehensive income for the period, net of tax

Total comprehensive income attributable to: Equity holders of the Company Non-controlling interests

2018

2017

S$'000

S$'000

(1,269)

(2,886)

(5,884)

249

(965)

66

2,041

537

-

586

-

(215)

(534)

(875)

(534)

(1,226)

49

-

56

10

(1,450)

(223)

1,563

(894)

788

-

906

-

(662)

(223)

2,469

(894)

(1,931)

(3,109)

(3,415)

(645)

(1,790)

(3,018)

(3,345)

(330)

(141)

(91)

(70)

(315)

(1,931)

(3,109)

(3,415)

(645)

9 months ended 30 September 2018 2017

*Financial assets measured at fair value through other comprehensive income

Quarter ended 30 SeptemberTHE GROUP

S$'000 S$'000

4

NSL LTD

(Reg. no.: 196100107C)

1(b)(i) A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year

Equity

Share capital

Reserves

Shareholders' equity

Non-controlling interests

Total equity

Current Assets

Inventories

Receivables and prepayments Contract assets

Tax recoverable

Cash and cash equivalents

Investment properties classified as

held-for-sale

Investment in an associated company

classified as held-for-sale

Non-Current Assets

Property, plant and equipment

Investments in subsidiaries

Investments in associated companies

Long term receivables and prepayments

Available-for-sale financial assets

Financial assets, at FVOCI*

Held-to-maturity financial assets

Other investments at amortised cost

Intangible assets

Deferred tax assets

Other non-current assets

Total Assets

Current Liabilities

Borrowings

Trade and other payables Contract liabilities

Tax Current income tax liabilities

Deferred income

Non-Current Liabilities

Provision for retirement benefits

Deferred tax liabilities

Borrowings

Deferred income

Other non-current liabilities

Total Liabilities

30.9.18

Note

S$'000

193,839

368,583

562,422

4,616

567,038

(1)

(2)

478,814

-(3)

- 478,814

(4)

(3)

(5)

699,932

(6)

(5)

(58,579) (59,816)

Net Assets

(132,894) 567,038

*Financial assets measured at fair value through other comprehensive income

THE GROUP

31.12.17

1.1.17

THE COMPANY 30.9.18 31.12.17

S$'000 (restated)

S$'000 (restated)

S$'000 S$'000

193,839

193,839 479,959

  • 193,839 193,839

    391,407

  • 168,085 184,652

585,246

  • 673,798 361,924

590,049

4,803

4,577 678,375

- 361,924

514,436

  • 602,942 293,042

378,491 - 378,491

310,219

- 44,369 558,805

9,493

-

-

- 612,435

- 293,042

- 310,219

719,976

814,831

420,503

438,307

(129,927) 590,049

(136,456) 678,375

361,924

378,491

5

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NSL Ltd. published this content on 14 November 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 14 November 2018 11:18:10 UTC