Enviro-Hub Holdings Ltd

 

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Extracted from Annual Report 2015

Dear Shareholders,

I am pleased to report that enviro-Hub remained resilient to deliver steadfast results in FY2015. This year, we recorded an increase in revenue by $5.8 million, an improvement of 5% from $108.3 million in FY2014 to $114.1 million in FY2015. This was attributed to our recycling and construction businesses; first year contribution from the joint operation with SB Procurement Pte Ltd, which is expected to continue contributing positively to the Group's performance in the forthcoming financial year.

The Group's Investment Properties Division that was set up in FY2013 has maintained positive growth and contributed to our bottom line in FY2015. This division contributed a segmental profit of approximately $20.2 million before tax and finance costs, and a segmental profit of $9.7 million after tax and finance costs.

Even as the Group's recycling business endured challenges in FY2014, we never wavered in our commitment to deliver excellence in every aspect of our operations. Our efforts were rewarded and I am glad to announce that our recycling segment saw a successful turnaround from a negative position in FY2014 to secure a profit in FY2015. This was generated from the combined effort of the Group's subsidiaries, Cimelia Resource Recovery Pte Ltd ("Cimelia") and HLS Electronics Pte Ltd ("HLS").

We incurred a loss of $9.6 million this financial year mainly due to the full impairment of the Group's plastic to fuel ("PTF") refining related assets, which amounted to approximately $11.1 million. The commencement of PTF refining on a mass production scale is expected to be delayed as a result of the slump in oil prices and instability of the global economy.

With reference to the announcements made via SGXNet on 18 March, 22 July and 22 September in 2015, enviro-Hub announced on 3 November 2015 that the conditions precedent under the Acquisition Sales & Purchase Agreements ("SPAs") had not been fulfilled as at 31 October 2015 ("Long-Stop Date"). The vendors have informed the Company that the Long-Stop Date will not be extended, and accordingly, the Acquisition SPAs would be terminated with effect from the Long-Stop Date. The mutual release and discharge of the respective parties' obligations in accordance with the terms and conditions of the Acquisition SPAs apply.

Following this, the Group announced that after considering the termination of the Proposed Acquisitions, the Company will be re-appraising the necessity of carrying out the Proposed Share Consolidation. We are still considering various alternative options available to the Company that will be most beneficial for shareholders.

On behalf of the Board of Directors, I would like to express my appreciation to all stakeholders for your continued support. Thank you for being part of our ongoing journey towards greater excellence. To our trusted Board of Directors, I am always grateful for your counsel and leadership. I look forward to working closely with you to propel enviro-Hub further. I would like to convey my appreciation to Ms Judy Ang, who has decided to move on to other endeavours. Ms Ang joined Enviro-Hub as an Executive Director, and I wish her all the best ahead. I also had the opportunity to work with Mr Tan Gim Soo during his tenure with us. Mr Tan stepped down from his position as an Independent Director at Enviro-Hub, and I would like to thank him for his remarkable contributions throughout this time. To the management and staff, thank you for your hard work and teamwork. I appreciate every effort that you put into driving enviro-Hub's growth. As we move forward, let us continue to leverage on our cohesive strengths to stay resilient and build a brighter future.

Raymond Ng Ah Hua
Executive Chairman