27 June 2014

CWT FY2013 Annual Report Summary - Last Updated June 2014

Introduction

CWT is a leading provider of integrated logistics solutions committed to connecting world trade, corporate social responsibility and sustainable business growth. CWT operates across multiple markets and geographies, delivering solutions that help customers succeed and communities thrive.

CWT adopts an integrated business approach with Logistics at the core of its diversified and related business activities which also include Commodity Marketing, Engineering Services and Financial Services. CWT’s ability to integrate its businesses and strengths from its logistics competencies, infrastructure and global network adds value for its customers and stakeholders. CWT is committed to business sustainability and growth through strengthening resources and optimising scale, maximising business and economic synergies, growing revenue and maintaining financial prudence. In addition, CWT adopts a capital recycling strategy through the sale and leaseback of property to fund new business development and expansion.


Group Financial Highlights

Record Revenue S$9.1 B (up 69% yoy), Record Gross Profit S$292M (up 15%), Record Operating Profit After Tax & Non Controlling Interest S$96.5 M (up 12%), Operating EPS 16.1 cents (up 12 %), Net Tangible Assets S$ 558 M (up 17% yoy), Net Asset Value S$ 660 M (up 13% yoy). 

The growth engine was Commodity Marketing (fr S$4.4B to S$8.1B) and Financial Services (fr S$22M to S$65M) while Logistic services (fr S$808M to S$799M) and Engineering services (fr S$157M to S$134M) seen a slow down. Nonetheless, the main profit contributor was Logistic services with profit before tax of S$77M while financial services registered positive result (S$4M) compared to S$6M loss a year ago.  


Chairman Statements

In 2013, we expanded warehouse capacity to over 12 million square feet, grew commodity logistics operations network and continued to re-engineer work processes for increased productivity. We also acquired synergistic businesses, consolidated and integrated core resources from container logistics, transportation, packaging and packing operations as part of an internal business rationalisation. Our investments in competitive advantage signal our renewed commitment to customers.

In 2013, MRI generated sales of S$8.1 billion, up 84% compared to 2012. During the year under review, we reorganised the MRI leadership team, strengthened our core and expanded our energy marketing portfolio. We shall continue to review, rationalise and optimise our commodity marketing operations to provide a lean and robust platform for future growth and new businesses

In April 2013, we issued S$100 million of securities notes from our S$500 million multi-currency debt issuance program. The net proceeds were used to fund general corporate developments. Most of the Group’s capital spending of S$184 million went towards our logistics infrastructure developments. We also made a few strategic acquisitions. These investments strengthen our competitive advantage and help us create value for shareholders and customers.

To reward shareholders, the Board of Directors has recommended a near 17% increase in shareholders’
dividend payment to 3.5 cents per share. This will amount to a total of around S$21 million. 

CWT is constantly evolving. We are investing in growth capability and capacity to strengthen our foundation, take advantage of market opportunities, and build an enduring legacy. Our scale of operations and strategic investments over time are a competitive advantage. Our financial strength gives us the flexibility and muscle to achieve such advantages integral to our long-term growth. Looking ahead, we will continue to accelerate the Group’s ability to build and improve on our sustainable business model.


Summary of Service Offering






















Group 5 Years Financial Summary







































As you can see from above table, ROE of the company maintained at more than 11% over the past 5 years. Besides that, you could see an increase of dividend (excluding special dividend) from 2 cents to 3.5 cents over the period. The revenue surged since FY 2011 after the acquisition of commodities marketing arm during the financial period. Net gearing remains at manageable level, which indicates that there is still room for the group to have additional borrowings to grow the overall business.



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