Revenue for FY2015 increased by $5.8 million or 5% from $108.3 million to $114.1 million, which was mainly contributed by the Group's recycling and construction businesses. The Group's recycling revenue was improved by the growth in revenue in its subsidiaries that specialise in PGM refining and e-waste recycling, namely Cimelia and HLS. The construction revenue was generated from the joint operation with SB Procurement Pte Ltd (as announced via SGXNET on 18 May 2014) for the construction of a 7-storey multi-user general industrial development located at 60 Jalan Lam Huat, Singapore.
The Group has achieved a positive operational bottom line, but was affected by an impairment of the Group's plastic to fuel ("PTF") refining related plant and equipment of approximately $11.1 million made during the current financial year. This was attributed to the expected delay in the commencement of PTF refining mass production due to the slump in oil prices and instability of the global economy. As a result, a loss of $9.6 million after tax was recorded in FY2015.
Recycling, Refining and Trading of Metals / E-Waste Divisions
These divisions focus on providing e-waste management solutions and recycling services. In FY2015, this segment turned around from a loss before tax and finance costs of $4.5 million to achieve a segmental profit before tax and finance costs of $0.9 million. The improved performance was attributed to better margins achieved, absence of impairment losses on property, plant and equipment and other investments, as well as the reversal of allowance on trade and other receivables, and write-down of inventories.
Piling, Construction, Rental & Servicing of Machinery and Sale of Machinery
& Spares Division
This division is involved in providing piling and construction services, as well as the rental and sale of cranes and heavy machinery for the construction industry. The segmental profit before tax and finance costs decreased from $2.6 million in FY2014 to $0.1 million in FY2015 mainly due to fewer projects completed in the piling business. However, the decrease was partially offset by an increase in segmental profit generated from the construction project at Jalan Lam Huat mentioned above.
Investment Properties Division
This division was set up in the third quarter of 2013 for the purpose of developing, investing and managing the Group's investment properties. In FY2015, the profit before tax and finance costs from the investment properties business, excluding discontinued operation, decreased from $65.0 million to $20.2 million. This was attributed to lower fair value gain recorded for the Group's investment properties at 1 Selegie Road, PoMo, as well as strata industrial units held at 63 Hillview Avenue, Lam Soon Industrial Building, due to a less robust property market in Singapore.
Plastics to Fuel Refining Division
This division engages in converting plastic to usable fuel oil, liquid petroleum gas and coke. The loss before tax and finance costs from PTF businesses increased slightly by $0.8 million in FY2015 as compared to FY2014. The increase was primarily due to the full provision of impairment of the PTF plant and equipments made during the current financial year.
Moving forward, the Group will continue to explore expansion opportunities in property investment and management. In addition, the Group will maintain control of its operating costs, with the ultimate aim of enhancing value and delivering greater value to all stakeholders.