The Group recorded a revenue of S$23.1 million in FY2020, representing a decline of 23.5% or S$7.1 million from S$30.2 million in the previous corresponding year. The Group’s revenue is contributed by its two business segments – Project Sales, which contributed 31.1% to the topline, and Project Management and Maintenance Services, which contributed the remaining 68.9%.
Revenue from the Project Sales segment increased by 16.3% or S$1.0 million yearon- year to S$7.2 million. While most overseas projects were put on hold due to travel restrictions arising from COVID-19 for most part of the year, this impact was mitigated by a locally secured project and its partial completion in FY2020, resulting in the increased contribution from the Project Sales segment.
Revenue from the Project Management and Maintenance Services segment decreased by 33.9% or S$8.2 million year-on-year to S$15.9 million in FY2020. The segment was affected by the COVID-19 pandemic, especially when work ceased completely for almost two months during the Circuit Breaker period, and the foreign workers were not allowed to work. All of Ntegrator’s foreign workers were gradually cleared for work by the Ministry of Manpower subsequent to negative COVID-19 test results.
Notwithstanding the cessation of work during the Circuit Breaker period, the Group still needed to maintain its workforce and incur other fixed costs. Consequently, the gross profit was impacted, albeit this was partially mitigated by the Government’s assistance. The Group recorded a gross profit of S$1.9 million for FY2020, a decline of 70.8% from S$6.5 million in FY2019. Correspondingly, gross profit margin decreased from 21.4% in FY2019 to 8.3% in FY2020.
Overall, the Group reported a 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 FY2019.
As at 31 December 2020, cash and cash equivalents stood at S$8.3 million, compared to S$2.4 million as at 31 December 2019.
Despite the difficult operating conditions, the Group clinched two contracts in February and August in the year under review from repeat customers, a confirmation of its track record and established working relationships with current customers. The 4 February 2020 contract amounted to approximately S$6.6 million, and is a variation order in relation to a contract which commenced in April 2019 – this involved the installation and maintenance works of pipelines, manholes, fiber and copper cables across the eastern and western parts of Singapore. The August contract involved the supply of services for the Nationwide Broadband Network, totaling S$13.4 million.
The contracts are expected to contribute positively to the Group’s financial performance over the next three financial years, subject to the timely completion of the projects and effective cost management. The COVID-19 situation, political and economic situations in the region may also affect the progress of the projects. The Group’s outstanding order book as at 31 December 2020 is S$65.9 million.
In the upcoming financial year, the Group will closely monitor the COVID-19 situation, travel restrictions and the political situation in Myanmar. It will also focus on increasing financial prudence and leveraging its excellent relationships with customers, to bring about greater longterm value to all stakeholders.