39 ANNUAL REPORT 2023 TURNOVER In FY2023, the Group registered a strong revenue growth of 30.0% year-on-year to S$725.1 million. The Electrification business segment continues to lead the growth in revenue, growing 39.4% or S$94.5 million year-on-year to S$334.5 million in FY2023. This was mainly attributed to growth in the data centre, power, utility, and energy storage markets fuelled by rising demand for power distribution and electrical control systems in the USA and Australia/ New Zealand region. The Communications business segment posted a strong revenue growth of 44.0% year-on-year or S$67.4 million, mainly attributed to expansion to new geographical regions organically and from new acquisitions. EARNINGS In line with higher revenue, Group’s gross profit increased by S$53.7 million or 36.7% year-onyear to S$199.9 million. Group’s gross margin improved to 27.6% in FY2023 from 26.2% in FY2022. The Group’s operating expenses for FY2023 were 17.0% or S$23.5 million higher year-on-year at S$161.5 million, mainly due to incremental expenses from consolidation of newly acquired subsidiaries of S$15.6 million, increase in upkeep of building and equipment cost of S$3.6 million, higher personnel costs of S$1.9 million and higher allowances for expected credit losses of S$2.6 million. Group EBITDA improved by 90.5% to S$63.6 million compared to FY2022 of S$33.4 million, mainly attributed to higher gross profits of S$53.7 million offset by higher operating costs (excluding depreciation and amortisation expenses) of S$21.0 million and S$4.3 million non-recurring gain on disposal of property, plant and equipment in FY2022. Consequently, the group’s net profit for FY2023 rose by 372.4% to S$22.5 million from S$4.8 million in FY2022, despite higher interest costs of S$4.8 million, additional depreciation and amortisation expenses of S$4.1 million, and increased tax expenses of S$3.6 million. PERFORMANCE OF GEOGRAPHICAL SEGMENTS In FY2023, the geographical regions of the Americas, Asia Pacific and EMEA contributed 59.9%, 37.1% and 3.0% to revenue respectively. The Americas region registered a strong revenue growth of 35.9% in FY2023 of S$434.6 million as compared to FY2022 of S$319.7 million, mainly attributed to higher project revenue achieved by the Electrification and Communications businesses. In line with growth in revenue and gross margin, EBIT improved to S$8.2 million, reversing from a loss before interest and tax of S$10.7 million in FY2022 which included cost overruns for some projects. The Asia Pacific region reported a 23.0% growth in FY2023 revenue to S$268.9 million from S$218.6 million in FY2022, mainly due to revenue contributions from new business acquisitions of S$50.5 million. In line with higher revenue achieved in FY2023, EBIT rose by 32.8% year-on-year to S$29.5 million. The EMEA region registered a 10.9% increase in revenues from S$19.4 million in FY2022 to S$21.5 million in FY2023 mainly due to contributions from new acquisitions in United Kingdom. The EMEA region reported lower EBIT of S$1.9 million in FY2023 as compared to S$2.0 million which included fixed assets disposal gain of S$0.3 million in FY2022. OPERATIONS AND FINANCIAL OVERVIEW S$725.1 million S$199.9 million S$39.7 million REVENUE GROSS PROFIT EARNINGS BEFORE INTEREST AND TAX (EBIT) FY2022: S$557.7 million FY2022: S$146.2 million FY2022: S$13.6 million +30.0% +36.7% +192.4%
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