(Extracted from Annual Report 2020)
In the year 2020, the world was gripped by concerns over the unprecedented COVID-19 outbreak, as well as major geopolitical developments around the world. Many countries turned to lockdowns and restrictions in movement and non-essential businesses to curb the spread of the highly contagious virus, which led to disruptions in supply chains and global markets.
As a result, many companies, including major customers of the Group, curtailed spending through delaying or holding back orders. Ntegrator’s overseas projects were also put on hold during the year due to the ensuing travel and border controls. In Singapore, the Group was unable to carry out any work during the two months of Circuit Breaker in April and May. Subsequently, work was allowed to resume post-Circuit Breaker and only after all of the Group’s foreign workers had tested negative for COVID-19.
The Group recorded a revenue of S$23.1 million for the year ended 31 December 2020 (“FY2020”), a decline of 23.5% from the previous year’s S$30.2 million, and a resultant net loss attributable to equity holders of the Company of S$2.8 million, compared to a net loss attributable to equity holders of the Company of S$2.0 million in the previous year.
As at 31 December 2020, cash and cash equivalents stood at a healthy S$8.3 million, compared to S$2.4 million as at 31 December 2019.
The Group expects the global business climate to remain challenging in the coming financial year, as the world gradually recovers from the impact of COVID-19. The Group will closely monitor the situation, which is expected to have several uncertainties, in the form of travel restrictions, political instability and the possible rise of new variants of COVID-19.
Moving forward, we will retain our focus on our core business in Project Sales and strengthen the recurring revenue streams generated from the Project Management and Maintenance Service segment. Meanwhile, the Group will maintain its prudent approach to capital management.
The Group’s outstanding order book as at 31 December 2020 is S$65.9 million, most of which were secured from the Group’s repeat customers. We are expecting that some customers may continue to delay non-essential and non-urgent installations to conserve cash amid the fluidity in the current environment.
Good business relationships are crucial for the Group. We regularly receive orders from repeat customers, which bears testament to our outstanding business relationships with them. Leveraging on our long track record of operational and service excellence, we will continue to build on our existing relationships and target new contracts in the markets where we operate in. We believe that with our strong foundation in the telecommunications industry and deep business relationships with our stakeholders, including our customers and suppliers, we are prepared and ready when the overall situation improves.
In this unprecedented operating environment, I would like to extend my deepest gratitude to the Board members, leadership team, employees and business associates for their loyalty and contributions towards Ntegrator. I would also like to thank our shareholders for their support for the Company, especially during these difficult times.
Han Meng Siew
6 April 2021