News

Full Year Financial Statement And Dividend Announcement

1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year




	Note	The Company	The Company	The Company	The Group	The Group	The Group
		S$'000	S$'000	%	S$'000	S$'000	%
		31 Dec 2002	31 Dec 2001	Increase/	31 Dec 2002	31 Dec 2001	Increase/
				(Decrease)	(Actual)	(Proforma)	(Decrease)
Turnover	i	1,845	-	nm	51,818	51,079	1
Cost of works	ii	-	-	nm	(44,601)	(43,198)	3
Gross Profit	iii	1,845	-	nm	7,217	7,881	(8)
Other income including interest income	iv	-	-	nm	155	444	(65)
Administrative expenses	v	(977)	-	nm	(3,780)	(2,743)	38
Other operating expenses	vi	-	-	nm	(136)	(23)	491
Profit from operating before taxation, minority interests, extraordinary items, finance cost	vii	868	-	nm	3,456	5,559	(38)
Finance cost	viii	(1)	-	nm	(221)	(320)	31
Operating profit before taxation	ix	867	-	nm	3,235	5,239	(38)
Taxation	x	(185)	-	nm	(1,012)	(1,313)	(23)
Net profit after taxation	xi	682	-	nm	2,223	3,926	(43)

n.m. - Not meaningful

Explanatory Notes

i) Turnover

Turnover increased by $0.7 million or 1.4% from $51.1 million for FY2001 to $51.8 million for FY2002. This was due mainly to an increase in turnover from road maintenance activities.

ii) Cost of works

Cost of works increased by $1.4 million or 3.2% from $43.2 million for FY2001 to $44.6 million for FY2002. This was due mainly to an increase in cost of works from road construction activity of $1.3 million and road maintenance of $0.1 million.

iii) Gross profit

Gross profit decreased by $0.7 million or 8.4% from $7.9 million for FY2001 to $7.2 million for FY2002 as a result of the increase in cost of works as explained in note (ii) above.

iv) Other income

The decrease in other income of $0.3 milliion or 65.0% was largely attributable to a lower rental income, bank fixed deposit interest and gain on disposal of fixed assets.

v) Administrative expenses

Administrative expenses had increased by $1.0 miilion or 37.8% from $2.7 million for FY2001 to $3.7 million for FY2002. This was attributable mainly to amortisation of goodwill and higher staff costs and directors' remuneration.

vi) Other operating expenses

The increase in other operating expenses was due mainly to fixed assets written off during FY2002.

vii) Profit from operations before taxation and finance costs

Profit from operations before taxation and finance costs declined by $2.1 million or 37.8% due mainly to:

(a) lower aggregate profit margin achieved for major projects undertaken in FY2002 as explained in note (ii) above.
(b) The decrease in other income as explained in note (iv) above.
(c) The increase in administrative expenses as explained in note (v) above.
(d) The increase in other operating expenses as explained in note (vi) above.

viii) Finance costs

Finance cost had decreased by $0.1 million from $0.3 million for FY2001 to $0.2 million for FY2002. This was due mainly to a reduction in bank overdraft interest with the full repayment of bank overdraft.

ix) Profit from operations after finance costs but before taxation

Profit from operations after finance costs but before taxation was lower as a result of lower profit from operation before taxation and finance costs as explained in note (vii) above which was partially offset by a decrease in finance costs of $0.1 million as explained in note (viii).
x) Taxation

Income tax expense had decreased by $0.3 million from $1.3 million for FY2001 to $1.0 million for FY2002 following the decrease in profit before taxation. However, the effective tax rate for FY2001 was higher than the statutory tax rate of 22% due mainly to certain non-deductible items added back for tax purposes.

xi) Net profit after taxation

Net profit after taxation decreased by $1.7 million from $3.9 million for FY2001 to $2.2 million for FY2002 as a result of lower profit before taxation as explained in note (ix) above.

Additional disclosure

i) Profit before taxation (note ix) was arrived:



	The Group	The Group	The Group
	S$'000	S$'000	%
	31 Dec 2002	31 Dec 2001	Increase/
	(Actual)	(Proforma)	(Decrease)
After charging:
Amortisation of goodwill	239	50	378
Auditors' remuneration
- Audit	42	27	56
- Others	4	2	100
Depreciation of fixed assets	389	301	29
Directors' remuneration	1,706	1,029	66
Fixed assets written off	107	-	nm
Interest
- Hire purchase	97	69	41
- Bank overdrafts	12	119	(90)
- Long term bank loan	113	132	(14)
Loss on disposal of fixed assets	29	24	21
Preliminary expenses written off	7	-	nm
Provision for diminution in value of investment properties	-	329	nm
Staff cost	691	506	37
After crediting:
Fixed deposits income	29	87	(67)
Gain on disposal of fixed assets	25	153	(84)

ii) Included in the cost of works are the following:



Depreciation of fixed assets	1,155	964	20
Staff costs	7,591	5,118	48

iii) Amount of any adjustment for under or overprovision of tax in respect of prior years

There were an adjustments for overprovision of tax amounting to $14,000 in respect of prior years.

iv) Amount of any pre-acquisition profits

There are no pre-acquisition profits.

v) Amount of profits on any sale of investments and/or properties



Sale of investment properties	Profit/(Loss)
Blk 159, #01-538, Ang Mo Kio Avenue 4, Singapore 560159	-




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




	The Company	The Company	The Group	The Group
	S$'000	S$'000	S$'000	S$'000
	31 Dec 2002	31 Dec 2001	31 Dec 2002	31 Dec 2001
			(Actual)	(Proforma)
Fixed assets	66	-	7,934	5,596
Subsidiaries	13,926	11,426	-	-
Investment properties	-	-	934	2,971
Intangible assets	-	-	1,703	50
Current assets
Construction in progress	-	-	849	113
Trade debtors	-	-	11,944	7,842
Other debtors, deposits and prepayments	10	-	697	210
Amount due from related party (trade)	-	-	-	118
Amount due from subsidiaries (trade)	1,844	-	-	-
Amount due from director of the company (non-trade)	-	-	-	1,590
Amount due from director of subsidiaries (non-trade)	-	-	-	75
Amount due from shareholders of the company (non-trade)	-	-	-	14
Amount due from related parties (non-parties)	204	-	-	-
Fixed deposits	-	-	4,523	4,394
Cash and bank balances	92	-	4,948	1,710
	2,150	-	22,961	16,066
Current liabilities
Trade creditors	-	-	10,121	6,850
Other creditors	-	-	9	60
Amount due to a subsidiary (non-trade)	31	-	-	-
Amount due to a director of a subsidiary (non-trade)	-	-	-	11
Hire purchase creditors	11	-	786	576
Long term bank loans (secured) - current portion	-	-	140	195
Short term bank loan (secured)	-	-	-	50
Bank overdrafts (secured)	-	-	-	1,017
Accrued operating expenses	236	-	1,294	391
Provision for income tax	185	-	972	1,328
	463	-	13,322	10,478
Net current assets	1,687	-	9,639	5,588
Less:
Non-current liabilities
Hire purchase creditors	(42)	-	(971)	(543)
Long term bank loans (secured)	-	-	(1,866)	(2,042)
Deferred taxation	-	-	(415)	(415)
	15,637	11,426	16,958	11,205
Represented by:
Share capital	13,626	11,426	13,626	11,426
Share Premium	1,329	-	1,329	-
Dividend reserve	668	-	668	-
Unappropriated profits	14	-	1,335	(221)
	15,637	11,426	16,958	11,205


Explanatory Notes

i) Fixed assets

The net book value of fixed assets increased by $2.3 million from $5.6 million as at 31 December 2001 to $7.9 million as at 31 December 2002. This was due mainly to the addition of fixed assets comprising mainly plant and machinery to support the newly awarded projects in FY2002 and reclassification of an investment property amounting to $1.4 million under fixed assets as the property has been occupied by one of the subsidiaries.

ii) Subsidiaries

Investment in subsidiaries had increased by $2.5 million from $11.4 million for FY2001 to $13.9 million for FY2002. The Company had used part of its net proceeds from the Initial Public Offering ("IPO") to increase its investment in its subsidiaries.

iii) Investment properties

Investment properties decreased by $2.0 million from $3.0 million as at 31 December 2001 to $0.9 million as at 31 December 2002. This was due to a disposal of an investment property and reclassification under fixed assets as explained in note (i).

iv) Intangible assets

The increase in intangible assets represents mainly goodwill on consolidation amounting to $1.9 million in connection with the Restructuring Exercise which was set out in the Company's Prospectus dated 13 July 2002.

v) Current assets

Current assets increased by $6.9 million from $16.1 million as at 31 December 2001 to $23.0 million as at 31 December 2002. This rise was due mainly to:

(a) Increase of trade debtors which was mainly due to a few significant accrued billings of a number of projects at year-end; and
(b) Increase in cash and cash equivalents due mainly to the net cash proceeds from IPO.

vi) Current liabilities

Current liabilities increased by $2.8 million from $10.5 million as at 31 December 2001 to $13.3 million as at 31 December 2002. This rise was due mainly to:

(a) Increase of trade creditors which was due to increased purchases which were in line with the increase in turnover;
(b) Increase in accured operating expenses due mainly to accruals for unbilled purchases of goods sold and services rendered by suppliers close to year-end; and
(c) Decrease in bank overdraft due to full repayment.

vii) Shareholders' equity

Shareholders' equity which comprised share capital, share premium and unappropriated profits, increased by $5.8 million from $11.2 million as at 31 December 2001 to $17.0 million as at 31 December 2002. This was mainly a result of issuance of 22,000,000 new ordinary shares to its IPO and profits generated from operations.


1(b)(ii) Aggregate amount of group's borrowings and debt securities

Amount repayable in one year or less, or on demand



As at 31/12/2002

As at 31/12/2001

Secured	Unsecured	Secured	Unsecured
$926,000	0	$1,262,000	0



Amount repayable after one year



As at 31/12/2002

As at 31/12/2001

Secured	Unsecured	Secured	Unsecured
$2,837,000	0	$2,042,000	0



Details of any collateral

As at the end of the financial year, freehold building and investment properties with net book value as follows were mortaged to banks to secure the Group's banking facilities:



	The Group	The Group
	As at 31 Dec 2002	As at 31 Dec 2001
	$'000	$'000
Freehold buildings and investment property mortgaged to banks	3,857	3,889

1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year




	The Group	The Group
	As at 31 Dec 2002	As at 31 Dec 2001
	$'000	$'000
Cash flows from operating activities
Profit before tax	3,235	5,239
Adjustments for:
Depreciation of fixed assets	1,544	1,265
Amortisation of intangible assets	239	50
Loss on disposal of fixed assets	29	24
Gain on disposal of fixed assets	(25)	(153)
Fixed deposit interest income	(29)	(87)
Hire purchase interest	97	69
Bank overdraft interest	12	119
Long term bank loans interest	113	132
Provision for diminution in investment prorperties	-	329
Fixed assets written off	107	-
Preliminary expenses written off	7	-
Operating profit before working capital changes	5,329	6,987
Construction in progress	(736)	(875)
Trade debtors	(4,102)	576
Other debtors, deposits and prepayments	(487)	(53)
Amount due from directors of the company (non-trade)	1,590	(31)
Amount due from directors of subsidiaries (non-trade)	75	1
Amount due from related parties (non-trade)	-	(93)
Amount due from shareholders of the company (non-trade)	14	(1)
Amount due from related party (trade)	118	-
Trade creditors	3,271	(3,341)
Other creditors	(51)	48
Amount due to a director of a subsidiary (non-trade)	(11)	(8)
Accrued operating expenses	904	(385)
Cash generated from operations	5,914	2,825
Hire purchase interest paid	(97)	(69)
Bank overdraft interest paid	(12)	(119)
Long term bank loans interest paid	(113)	(132)
Fixed deposit interest income	29	87
Income tax paid	(1,368)	(310)
Net cash generated from operating activities	4,353	2,282
Cash flows from investing activities
Purchase of fixed assets	(924)	(1,059)
Proceeds from disposal of fixed assets	56	2,589
Purchase of investment properties	-	(132)
Proceeds from sale of investment property	600	-
Net cash generated from/(used in) investing activities	(268)	1,398
Cash flow used in financing activities
Payment to hire purchase creditors	(1,056)	(467)
Proceeds from short term bank loan	300	50
Proceeds from long term bank loans	1,100	-
Payment of dividends to shareholders	(1,892)	-
Repayment of long term bank loan	(1,332)	(68)
Repayment of short term bank loan	(350)	-
Proceeds from issue of shares less expenses	3,529	-
Net cash generated from/(used in) financing activities	299	(485)
Net increase in cash and cash equivalents	4,384	3,195
Cash and cash equivalents at beginning of year	5,087	1,892
Cash and cash equivalents at end of the year (Note i)	9,471	5,087

Explanatory notes

i) For the purpose of the consolidated cash flow statement, the consolidated cash and cash equivalents at the end of the financial year comprised as follows:



	The Group	The Group
	31 Dec 2002	31 Dec 2001
Cash and cash equivalents
Fixed deposits	4,523	4,394
Cash and bank balances	4,948	1,710
Bank overdrafts	-	(1,017)
	9,471	5,087



ii) Net increase in cash and cash equivalents for FY2002 of $4.4 million was due mainly to net cash proceeds from IPO of $3.5 million and net cash generated from operating activities of $4.4 million partially offset by the purchase of $0.9 million of fixed assets and repayment of hire-purchase creditors, loans and dividend payments to shareholders, in an aggregate of, $3.2 million.

For FY2001, the positive net cash flow of $3.2 million was due mainly to the net cash generated from operating activities of $2.3 million and proceeds from disposal of fixed assets of $2.6 million partially offset by the purchase of fixed assets and investment property of $1.2 million and repayment of hire-purchase creditors and loans of $0.5 million.


1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year

The Group



	Issued Capital	Share Premium	Dividend Reserve	Reserves	Total
	$'000	$'000	$'000	$'000	$'000
Balance at 1 January 2001 (Proforma)	4,700	-	-	2,579	7,279
Profit for the year	-	-	-	3,926	3,926
Arising from eliminated on Restructuring Exercise	6,726	-	(1,892)	(4,834)	-
Dividends for 2001 - proposed	-	-	1,892	(1,892)	-
Balance at 31 December 2001 (Proforma)	11,426	-	-	(221)	11,205
Initial Public Offer	2,200	2,200	-	-	4,400
Share issue expenses	-	(871)	-	-	(871)
Profit for the year	-	-	-	2,224	2,224
Dividends for 2002 - proposed	-	-	668	(668)	-
Balance at 31 December 2002 (Actual)	13,626	1,329	668	1,335	16,958

The Company



	Issued Capital	Share Premium	Dividend Reserve	Reserves	Total
	$'000	$'000	$'000	$'000	$'000
Balance at 1 January 2001	-	-	-	-	-
Arising from eliminated on Restructuring Exercise	11,426	-	-	-	11,426
Balance at 31 December 2001	11,426	-	-	-	11,426
Initial Public Offer	2,200	2,200	-	-	4,400
Share issue expenses	-	(871)	-	-	(871)
Profit for the year	-	-	-	682	682
Dividends for 2002 - proposed	-	-	668	(668)	-
Balance at 31 December 2002	13,626	1,329	668	14	15,637

Explanatory note

i) Proposed dividends

Dividends declared and proposed after the balance sheet is shown as a component of equity in accordance to SAS 10, Events after the Balance Sheet Date. As a result, the annual dividend set out in paragraph 16 for the financial year ended 31 December 2002 is shown as dividends reserve on the face of balance sheet in arriving at total shareholders equity.


1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares or cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year

Details of any changes in the company's issued share capital



	Number of ordinary shares
Issue and fully paid-up ordinary shares of $1.00 each as at date of incorporation	2
Issue of ordinary shares of $1.00 each pursuant to the Restructuring Exercise	11,426,092
	11,426,094
Sub-Division of shares	114,260,940
Issue of new shares pursuant to the listing of the Company on SGX SESDAQ	22,000,000
Post-Invitation share capital	136,260,940

On 26 July 2002, the Company issued 22,000,000 new ordinary shares of $0.10 at $0.20 per share pursuant to its IPO, details of which are set out in the Company's Prospectus dated 13 July 2002.


2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)

Not audited or reviewed.


3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter)

Not audited or reviewed.


4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied

The financial statements have been prepared on a historical cost basis and in accordance with the Singapore Statements of Accounting Standard and appropriate Singapore law. The accounting policies applied by the Company are consistent with those used in the previous year.


5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change

Not applicable.


6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends




		The Group	The Group
		31 Dec 2002	31 Dec 2001
(a)	Based on the weighted average number of ordinary shares on issue (cents)	1.63	2.88
(b)	On fully diluted basis (cents)	na	na


Earnings per ordinary share for the year ended 31 December 2002 and 31 December 2001 was calculated based on the number of shares in issue of 136,260,940 ordinary shares of $0.10 each.


7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year




	The Group	The Group	The Company	The Company
	31 Dec 2002	31 Dec 2001	31 Dec 2002	31 Dec 2001
	(Actual)	(Proforma)
Net asset value per ordinary share ($)	0.11	0.08	0.11	0.08

Net asset value per ordinary share as at 31 December 2002 and 31 December 2001 was calculated based on the number of shares in issue of 136,260,940 ordinary shares of $0.10 each.


8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on




	Revenue	Revenue	Increase/ (Decrease)	Profit before interest and tax	Profit before interest and tax	Increase/ (Decrease)
	31 Dec 2002	31 Dec 2001		31 Dec 2002	31 Dec 2001
	$'000	$'000	%	$'000	$'000	%
Road construction	25,885	25,885	-	1,659	3,391	(51)
Road maintenance	25,933	25,194	3	1,797	2,168	(17)
Total	51,818	51,079	1	3,456	5,559	(38)

(i) Turnover

For the full year ended 31 December 2002, the turnover for the Group grew 1.4% from $51.1 million from FY2001 to $51.8 million for FY2002.

The Group registered a $25.9 million in revenue from the road construction activity in both FY2001 and FY2002.

Revenue attributable to our road maintenance activity had increased by $0.7 million or 2.9% from $25.2 million for FY2001 to $25.9 for FY2002. The increase was due mainly to revenue recognised for new road maintence projects which had contributed, in aggregate, $17.0 million to our total revenue for road maintenance for FY2002. However, these contributions were dampened by the lower percentage of revenue recognised from previously awarded and substantially completed projects.

(ii) Profitability

For the full year ended 31 December 2002, the Group recorded a profit from operations before taxation and finance costs $3.5 million. This was $2.1 million or 37.8% lower compared with FY2001 due mainly to:

(a) The decrease in gross profit from road construction and road maintenance amounted to, in aggregate, $0.7 million
(b) Decrease in other income of $0.3 million
(c) Increase in administrative expenses of $1.0 million
(d) Increase in other operating expenses of $0.1 million

The decrease in gross profit contribution from road construction was due mainly to an increase in labour costs and subcontracting costs as labour costs and sub-contracting costs as a percentage of revenue increased from 9.0% and 30.7% for FY2001 to 13.4% and 36.9% for FY2002 respectively. Newly awarded projects required higher labour cost and sub-contracting costs.
The decrease in gross profit contribution from road maintenance was due mainly to an increase in labour and sub-contracting costs as labour and sub-contracting costs as percentage of revenue increased from 11.9% and 20.3% for FY2001 to 16.0% and 24.8% for FY2002 respectively. Maintenance projects are generally labour intensive in nature. However, the aforesaid increase in cost of works was partially offset by a decrease in construction material costs as construction material costs as a percentage of revenue from 45.8% for FY2001 to 36.1% for FY2002.

Profit before taxation and finance costs had decreased by $2.1 million or 37.8% from $5.6 million for FY2001 to $3.5 million for FY2002. The decrease was due mainly to the decrease in profit before taxation and finance costs from road construction activity of $1.7 million. The decline in profit before taxation and finance costs from road construction resulted from the decrease in gross profit as mentioned above and the allocation of operations expenses to the road construction activity.


9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results

When the Company announced its results for the half year ended 30 June 2002 on 24 September 2002, it was mentioned that the Group expects to at least maintain its performance in the second half of the financial year ending 31 December 2002. At turnover level, our current announced results was better than our prospect statement made in our half year interim results announced on 24 September 2002. However, at profit after taxation level, profit after taxation for second half of FY2002 was lower than the second half of the corresponding year. This was mainly due to higher operating expenses.

In addition, the current announced results are in line with the prospect statement that contracts completed and contracts secured are expected to contribute approximately $49 million to the revenue for FY2002, as disclosed in the Company's prospectus dated 13 July 2002.


10. A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months

Outlook and future plans

According to the Building and Construction Authority ("BCA") total construction demand for FY2003 is likely to fall to $12.0 billion, down 15.2% from the estimated demand of $14.2 billion last year due to the unfavourable external environment which has taken a toll on business confidence in the local economy. In addition, large public projects will dwindle in FY2003 and the market will be supported by smaller projects.

According to news announced by our National Development Minister Mah Bow Tan on 4 January 2003, the government will spend a considerable sum on Estate Upgrading Programme ("EUP") in future years. Based on the aforementioned, the expected increase in construction demand would present opportunities for us to tender and secure new projects.

Despite the outlook for the construction industry and the business environment in Singapore remain difficult and competitive, the management remains optimistic for its outlook for FY2003.

We managed to maintain a healthy $141.0 million order book with 6 on-going projects which are expected to contribute to our Group's earnings until FY2004. 2 of 8 contracts secured in FY2002 were The Construction of 2nd South Cross Taxiway and Associated Works, Singapore Changi Airport ("CAAS") and Design and Widen Bukit Timah Expressway from Kranji Expressway to Seletar Expressway ("BKE") which are worth $39.5 million and $21.6 million respectively. Revenue to be recognised for FY2003 and thereafter, from contracts on hand are expected to be $100.5 million.

In addition, our listing, by way of IPO, in July 2002, has strengthened our financial position significantly and put us in a good position to exploit any weaknesses by our competitors.

Apart from continuing to tender actively for government projects which have been the core business of our Group, we will also participate to tender for more design-and-build projects in the future. In addition to services rendered in a typical construction engagement, our role in design-and-build projects includes the provision of value-added advice on project feasibility based on our customers' needs and budgets. Currently, we have secured a design-and-build project which involve the design and widening of Bukit Timah Expressway from Kranji Expressway to Seletar Expressway ("BKE") which is worth $21.6 million.

We also intend to expand overseas to take advantage of the opportunities offered by the expected growth of the construction industry in those countries. We see opportunities for our core business of road construction in the overseas market, especially in India and Cambodia. When the opportunity arises, we may form strategic alliance with overseas partners to tender for projects in these countries.

The Group will continue to perform detailed reveiews of major projects, identified and implement various controls to reduce costs to improve operational efficiencies.

This release may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, and governmental and public policy changes. You are cautioned not to place undue reliance on these forward looking statements, which are based on current view of management on future events.


11. Dividend

(a) Current Financial Period Reported On

Any dividend declared for the current financial period reported on?



Name of Dividend	First & Final
Dividend Type	Cash
Par value of shares	$0.10
Tax Rate	Tax exempt



(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year? None

(c) Date payable

To be announced later.


(d) Books closure date

To be announced later.


12. If no dividend has been declared/recommended, a statement to that effect

Not applicable

13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year
The Company operates in two business segments - road construction and road maintenance.
Segments results, assets and liabilities include items directly attributable as well as those that can be allocated on a reasonable basis.


Business Segments


The Company has the following main business segments:

Road maintenance - It relates to re-construction work performed on roads, road reserves, pavements, footpaths and kerbs, guardrails, railings, drains, signboards as well as bus bays and shelters.

31 December 2002 $'000	Road Construction	Road Maintenance	Eliminations of turnover with the Group	Consolidated
Turnover
External sales	25,885	25,933	-	51,818
Inter-company sales	-	8,806	(8,806)	-
Total sales	25,885	34,739	(8,806)	51,818
Results
Segment Result	3,484	3,733		7,217
Other income				155
Administrative expenses				(3,780)
Other operating expenses				(136)
Profit from operations				3,456
Finance costs				(221)
Profit before tax				3,235
Tax				(1,012)
Profit after tax				2,223
Other information
Segment assets	3,816	8,977		12,793
Unallocated assets				20,739
Total assets				33,532
Unallocated liabilities				12,891
Total liabilities				12,891

31 December 2001 (Proforma) $'000	Road Construction	Road Maintenance	Eliminations of turnover with the Group	Consolidated
Turnover
External sales	25,885	25,194	-	51,079
Inter-company sales	-	10,059	(10,059)	-
Total sales	25,885	35,253	(10,059)	51,079
Results
Segment Result	4,823	3,058		7,881
Other income				444
Administrative expenses				(2,743)
Other operating expenses				(23)
Profit from operations				5,559
Finance costs				(320)
Profit before tax				5,239
Tax				(1,313)
Profit after tax				3,926
Other information
Segment assets	5,255	2,700		7,955
Unallocated assets				16,728
Total assets				24,683
Unallocated liabilities				13,478
Total liabilities				13,478




14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments

As explained in paragraph 8.


15. A breakdown of sales

a) A breakdown of sales

		The Group	The Group	The Group	The Company	The Company	The Company
				%			%
		31 Dec 2002	31 Dec 2001	Increase/	31 Dec 2002	31 Dec 2001	Increase/
		(Actual)	(Proforma)	(Decrease)			(Decrease)
(a)	Sales reported for the first half year	23,248	29,147	(20)	-	-	nm
(b)	Net profit after taxation for the first half year	1,292	2,454	(47)	(8)	-	nm
(c)	Sales reported for the second half year	28,570	21,932	30	1,845	-	nm
(d)	Net profit after taxation for the second half year	931	1,472	(36)	690	-	nm


b) Interested persons transactions disclosure

	Interested Party	Relationship	For year ended 31 Dec 2002	For year ended 31 Dec 2001
			$'000	$'000
a	Purchase of fixed assets
	Sin Kah Heng Motor Trading Co	Sin Kah Heng is owned by sister-in-law of Mr Or Kim Peow, our Chairman	348	340
	Or Toh Wat	Or Toh Wat is our Executive Director	22	-
	Oh Enc Nam	Oh Enc Nam is our Executive Director	5	-
	Citysafe Pte Ltd	Directors of Citysafe Pte Ltd are Mr Or Kim Peow, our Chairman, Or Toh Wat, our Group Managing Director and Or Kiam Meng, Executive Director	8	-
b	Sale of property
	Or Toh Wat, Or Kiam Meng and Or Lay Huat, Daniel	Or Toh Wat, our Group Managing Director, Or Kiam Meng, our Executive Director, Or Lay Huat, Daniel is son of Mr Or Kim Peow, our Chairman	600	-
	Or Toh Wat and Adeline Chua Bee Hong	Or Toh Wat, our Group Managing Director, Mdm Chua Bee Hong is wife of Or Toh Wat	-	1,350
	Or Kiam Meng and Lim Beng Choon	Or Kiam Meng, our Executive Director, Mdm Lim Beng Choon is wife of Or Kiam Meng	-	1,100
c	Provision for legal services
	Loo & Partners	Mr Loo Choon Chiaw, our independent director, is the Managing Partner of Messrs Loo & Partners	133	-
d	Provision for management consultancy fees
	Or Lay Wah, Elaine	Or Lay Wah, Elaine is daughter of Mr Or Kim Peow, our Chairman	25	-
e	Advances
	Citysafe Pte Ltd	Directors of Citysafe Pte Ltd are Mr Or Kim Peow, our Chairman, Or Toh Wat, our Group Managing Director and Or Kiam Meng, Executive Director	-	100
f	Reimbursement of administrative expenses
	Citysafe Pte Ltd	Directors of Citysafe Pte Ltd are Mr Or Kim Peow, our Chairman, Or Toh Wat, our Group Managing Director and Or Kiam Meng, Executive Director	-	2




16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year

Total Annual Dividend (Refer to Para 16 of Appendix 7.2 for the required details)



	Latest Full Year (S$'000)	Previous Full Year (S$'000)
Ordinary	668	0
Preference	0	0
Total:	668	0



The dividends of $668,000 represents approximately 30.0% of our Group profit after tax for FY2002.

The dividend yield calculated based on final dividend and the Company transacted price on 8 February 2003 of 10 cents is approximately 4.9% per annum. The above dividend represents a dividend of 0.49 cents per share.