Revenue for Civil Engineering segment increased by $40.1 million as the construction work for stabling yard at Gali Batu picks up in 2016. However total revenue for the group decreased by $56.7 million (-32%) to $118.1 million as no sales was recorded for property development segment. The sales of Ark@KB was recognized in March 2015 and there was no development project for recognition in the current financial period. The revenue from Investment property segment was only $0.2 million as the workers dormitory has ceased operation since end of 2015.
Civil Engineering segment's gross profit was $30.1 million with higher revenue. Gross margin was much higher mainly due to about $15 million write back of maintenance cost provision for the completed projects. Total gross profit for the group has reduced by $8.4 million (-22%) compare to the FY2015 as there is minimal contribution from Property Development and the rental from investment properties.
Other income increased by $0.1 million (+3%) to $4.8 million, this was mainly due to the higher interest income.
Distribution cost was $88,000 for FY2016, down from $0.3 million in FY2015 as there was minimal selling activities for the Property Development segment.Administrative expenses decreased by $0.8 million (-13%) to $5.4 million for the current financial year due to the lower performance bonus accrued in line with the drop in profit, lower administrative expenses for the property development segment, partially offset by the higher staff cost.
Fair value loss on investment property was $250,000 for FY2016 (-90%) as the fair value loss of $2.4 million for FY2015 was mainly related to the workers dormitory which has been demolished at end of 2015.
Impairment of investment securities amount to $0.3 million mainly due to the write down of the held-tomaturity investment securities.
The share of result of joint venture was $11.5 million, compared to $8.0 million recorded for FY2015. This was mainly due to the recognition of the sales and TOP obtained in May for the Skywoods project. All units for project have been fully sold by July 2016.
Profit before taxation decreased by $2.1 million to $40.3 million, resulting mainly from absence of sales revenue from Property Development segment partially offset by the higher profit sharing from the Joint Venture in the residential development project, revenue from civil engineering segment, write back of cost provision for maintenance and interest income.
Property, plant and equipment has increased by $6.7 million mainly due to the acquisition of the Tampines site for $3.8 million for the construction of own workshop and various plant and equipments to meet the requirement of ongoing projects.
Investment in Joint Venture was $10.0 million higher due to the profit recognition of the Joint Venture residential development project, The Skywoods.
Cash and short term deposits increased by $49.1 million to $206.0 million as at 31 December 2016. The increase was mainly due to the repayment of loan of $60 million from the Joint Venture net of the payment of dividend of $12.7 million.