Financial Review
Baker Technology Limited
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27
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FINANCIAL
REVIEW
T
heGroup continued to feel the
impact of a weak demand in
FY2016which had negatively
affected the results of the Group as
revenuewasdown60%yearonyear at
$21.5million. Inviewof theweakness
of the industry, theGroupalso recorded
an impairment loss of $7.6million on
goodwill in a subsidiary in 4Q2016.
In2Q2016, theGroup recognisedaone-
offcompensation incomefromasupplier
fordefectivematerials.BakerTechalso
recorded a foreign exchange gain of
$1.2 million in FY2016 as compared
to $5.3 million in FY2015 due to the
further strengthening of the US dollar
against theSingaporedollar, especially
during the fourthquarter.TheUSdollar
appreciatedapproximately2.3%and7.0%
against theSingaporedollar inFY2016
andFY2015, respectively.
InMay 2016, theGroup completed a
share consolidation exercise during
which every five existing issued
ordinary shares in the capital of the
Companywere consolidated intoone
ordinary share.
With the decrease in revenue and the
impairment losson thegoodwill,Baker
Tech reported a pre-tax loss of $9.2
million in FY2016. Net loss was at
$8.3million after a tax credit of $0.9
millionprimarily from thewrite-backof
excess taxprovision fromprior years.
The Directors have recommended a
first and final tax-exempt (one-tier)
dividendof 1.25 cents per share tobe
paid for the year ended 31December
2016.This issubjected toshareholders’
approval at the forthcoming Annual
GeneralMeeting of the Company.
IncomeStatement
2016
$'000
2015
$'000
Changes
%
Revenue
21,520
54,064
-60%
Cost of sales
(15,849)
(38,845)
-59%
Gross profit
5,671
15,219
-63%
Other operating income
2,425
1,123
+116%
Foreign exchange gain
1,183
5,322
-78%
Impairment of goodwill
(7,551)
-
NM
Administrative expenses
(10,950)
(10,540)
+4%
(Loss) / profit before tax
(9,222)
11,124
NM
Income taxwrite back / (expenses)
895
(1,960)
NM
(Loss) / profit after tax
(8,327)
9,164
NM
Gross profitmargin
26%
28%
* NM denotesNotMeaningful
