Assignment title: Information
Page 1 of 22
COMFORTDELGRO CORPORATION LIMITED
Company Registration Number : 200300002K
______________________________________________________________________________
Financial Statements and Dividend Announcement for the year ended 31 December
2016
______________________________________________________________________________
The Board of Directors announces the audited results of the Group for the year
ended 31 December 2016.
1 GROUP INCOME STATEMENT
FY2016 FY2015
Incr /
(Decr)
$'m $'m %
Revenue 4,111.5 4,059.5 (1.3)
Staff costs 1,403.5 1,458.0 3.9
Contract services 566.0 560.9 (0.9)
Depreciation and amortisation 389.3 396.0 1.7
Repairs and maintenance costs 249.3 258.6 3.7
Fuel and electricity costs 301.7 231.7 (23.2)
Materials and consumables costs 210.9 154.0 (27.0)
Road tax 137.0 138.5 1.1
Insurance premiums and accident claims 125.1 125.8 0.6
Premises costs 86.6 91.4 5.5
Taxi drivers' benefits 59.6 55.6 (6.7)
Advertising production and promotion costs 20.1 21.7 8.0
Utilities and communication costs 21.1 19.7 (6.6)
Vehicle leasing charges 20.6 19.2 (6.8)
Other operating costs 66.2 70.0 (5.4)
Total Operating Costs 3,597.3 3,660.8 (1.7)
Operating Profit 450.7 462.2 2.6
Net Income from Investments 15.0 13.9 (7.3)
Finance Costs (18.4) (14.4) (21.7)
Share of Profit in Associate 4.9 4.9 -
Profit before Taxation 452.2 466.6 3.2
Taxation (88.4) (88.2) (0.2)
Profit after Taxation 363.8 378.4 4.0
Attributable to :
Shareholders of the Company 317.1 301.9 5.0
Non-Controlling Interests 61.9 61.3 (1.0)
363.8 378.4 4.0
GroupPage 2 of 22
2 STATEMENTS OF FINANCIAL POSITION
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
$'m $'m $'m $'m
ASSETS
Current assets
Short-term deposits and bank balances 779.3 787.8 309.6 329.6
Trade receivables 237.4 192.9 - -
Other receivables and prepayments 152.7 223.9 2.5 1.8
Due from subsidiaries - - 2.9 3.7
Inventories 75.1 81.7 - -
Total current assets 1,251.1 1,279.7 315.0 335.1
Non-current assets
Subsidiaries - - 1,121.5 1,121.5
Associates 10.2 11.2 0.3 0.1
Investments 51.6 62.9 41.7 33.0
Other receivables and prepayments 3.0 22.4 0.1 0.1
Grant receivables 237.6 245.3 - -
Due from subsidiaries - - 19.8 19.5
Vehicles, premises and equipment 2,887.4 2,909.0 8.0 9.5
Taxi licences 230.5 217.7 - -
Goodwill 442.6 427.5 - -
Deferred tax assets 23.6 25.0 - -
Total non-current assets 3,870.9 3,936.6 1,191.4 1,183.7
Total assets 5,216.3 5,122.0 1,506.4 1,518.8
LIABILITIES AND EQUITY
Current liabilities
Borrowings 126.4 169.3 - -
Trade and other payables 771.4 833.4 49.9 50.4
Deferred grants 17.3 17.9 - -
Due to subsidiaries and associate 14.3 10.9 422.2 426.8
Fuel price equalisation account 20.0 20.0 - -
Insurance premiums payable and 70.2 79.8 - -
provision for accident claims
Income tax payable 48.5 49.1 2.6 2.2
Total current liabilities 1,111.6 1,136.9 474.7 479.4
Non-current liabilities
Borrowings 432.2 175.8 - -
Deferred grants 279.2 279.6 - -
Other liabilities 109.5 90.7 0.1 0.1
Fuel price equalisation account 20.0 20.0 - -
Deferred tax liabilities 252.2 225.9 2.3 2.8
Total non-current liabilities 818.3 1,066.8 2.4 2.9
Total liabilities 2,203.7 1,929.9 477.1 482.3
Capital, reserves and
non-controlling interests
Share capital 665.5 676.9 676.9 665.5
Other reserves 23.4 (64.2) (13.3) (21.0)
Foreign currency translation reserve (125.5) (53.7) - -
Accumulated profits 1,900.7 1,787.5 365.7 392.0
Equity attributable to shareholders 2,335.1 2,475.5 1,029.3 1,036.5
of the Company
Non-controlling interests 716.6 677.5 - -
Total equity 3,012.6 3,192.1 1,029.3 1,036.5
Total liabilities and equity 5,216.3 5,122.0 1,506.4 1,518.8
Certain comparative figures have been reclassified to conform to current year's presentation.
Group CompanyPage 3 of 22
3 AGGREGATE AMOUNT OF GROUP’S BORROWINGS
31 Dec 2016 31 Dec 2015
$ 'm $ 'm
Secured
Amount repayable in one year or less, or on demand 1 37.9 9.0
Amount repayable after one year 89.8 162.2
200.1 108.8
Unsecured
Amount repayable in one year or less, or on demand 1 88.5 50.3
Amount repayable after one year 86.0 270.0
358.5 236.3
Total
Amount repayable in one year or less, or on demand 1 126.4 69.3
Amount repayable after one year 175.8 432.2
345.1 558.6
Details of any collateral
Details of the total secured borrowings of $108.8m are as follows:
a $59.7m relates to financing of vehicles under hire purchase arrangements; and
b $49.1m relates to borrowings of subsidiaries secured by vehicles.Page 4 of 22
4 GROUP CASH FLOW STATEMENT
Full Year Full Year
2016 2015
$'m $'m
Operating activities:
Profit before Taxation 452.2 466.6
Adjustments for:
Depreciation and amortisation 389.3 396.0
Finance costs 18.4 14.4
Interest income (12.2) (11.6)
Dividend income (2.6) (2.5)
Grant income (130.8) (104.4)
Net gain on disposal of vehicles (6.2) (2.3)
Share of profit in associate (4.9) (4.9)
Others 2.2 6.1
Operating cash flows before movements in working capital 757.4 705.4
Changes in working capital (23.4) 8.5
Cash generated from operations 682.0 765.9
Income tax paid (81.8) (63.4)
Net cash from operating activities 600.2 702.5
Investing activities:
Purchases of vehicles, premises and equipment (669.6) (466.5)
Less: Vehicles purchased under finance lease arrangements - 19.1
Less: Proceeds from disposal of vehicles 262.8 78.2
Cash payments on purchase of vehicles, premises and equipment (388.3) (387.7)
Payment for taxi licences (1.5) (0.5)
Investment made - (0.3)
Divestment of a subsidiary, net of cash [Note (a)] 0.2 -
Return of capital from an associate - 0.6
Interest received 11.5 11.3
Dividend received from an associate 2.9 3.4
Dividend received from investments 2.6 2.5
Net cash used in investing activities (372.0) (371.3)
Financing activities:
New loans raised 472.5 437.5
Repayment of borrowings (662.1) (646.9)
Capital contribution from non-controlling shareholder of a subsidiary 0.5 -
Dividends paid to shareholders of the Company (182.5) (199.4)
Dividends paid to non-controlling shareholders of subsidiaries (30.6) (31.8)
Proceeds from exercise of share options of the Company 17.5 10.3
Proceeds from exercise of share options of subsidiaries 0.2 2.4
Grants received 135.2 120.2
Interest paid (18.2) (14.9)
Proceeds from unclaimed dividends 0.2 0.1
Net cash used in financing activities (269.0) (320.8)
Net effect of exchange rate changes in consolidating subsidiaries 2.8 (18.9)
Net decrease in cash and cash equivalents (38.0) (8.5)
Cash and cash equivalents at beginning of year 825.8 787.8
Cash and cash equivalents at end of year 787.8 779.3
GroupPage 5 of 22
Note (a):
Summary of the effects of divestment of a subsidiary:
Full Year Full Year
2016 2015
$'m $'m
Net assets (liabilities) on divestment:
Current assets 0.7 -
Non-current assets 0.5 -
Current liabilities (0.1) -
Net assets divested / Proceeds from divestment 1.1 -
Non-controlling interests (0.2) -
Less : Cash adjustment upon deconsolidation of a subsidiary - (0.7)
Cash flow from divestment, net of cash 0.2 -
GroupPage 6 of 22
5 GROUP COMPREHENSIVE INCOME STATEMENT
Full Year
2016
Full Year
2015
$'m $'m
Profit after Taxation 363.8 378.4
Items that may be reclassified subsequently to profit or loss
Fair value adjustment on cash flow hedges 33.8 47.1
Fair value adjustment on bonds (0.2) (0.1)
Exchange differences on translation of foreign operations (79.2) (10.0)
23.6 (32.2)
Items that will not be reclassified subsequently to profit or loss
Actuarial adjustment on defined benefit plans 3.3 0.9
Fair value adjustment on equity investments (19.8) 10.5
Revaluation of premises (Note A) - 40.2
(16.5) 51.6
Other comprehensive income for the year 7.1 19.4
Total comprehensive income for the year 370.9 397.8
Attributable to:
Shareholders of the Company 310.7 329.8
Non-Controlling Interests 60.2 68.0
370.9 397.8
Group
Note A
This arose due to revaluation of a leasehold property of a subsidiary.Page 7 of 22
6 STATEMENTS OF CHANGES IN EQUITY
Consolidated Statement of Changes in Equity for the year ended 31 December 2016:
Noncontrolling
interests
Total
equity
Share
capital
Other
reserves
Foreign
currency
translation
reserve
Accumulated
profits Total
$'m $'m $'m $'m $'m $'m $'m
Balance at 1 January 2015 646.4 (77.4) (50.4) 1,671.3 2,189.9 648.9 2,838.8
Total comprehensive income for the year
Profit for the year - - - 301.9 301.9 61.9 363.8
Other comprehensive income for the year - 12.1 (3.3) - 8.8 (1.7) 7.1
Total - 12.1 (3.3) 301.9 310.7 60.2 370.9
Transactions recognised directly in equity
Exercise of share options 19.1 (1.6) - - 17.5 - 17.5
Payment of dividends - - - (182.5) (182.5) - (182.5)
Other reserves - 2.7 - (3.2) (0.5) (31.6) (32.1)
Total 19.1 1.1 - (185.7) (165.5) (31.6) (197.1)
Balance at 31 December 2015 665.5 (64.2) (53.7) 1,787.5 2,335.1 677.5 3,012.6
Total comprehensive income for the year
Profit for the year - - - 317.1 317.1 61.3 378.4
Other comprehensive income for the year - 84.5 (71.8) - 12.7 6.7 19.4
Total - 84.5 (71.8) 317.1 329.8 68.0 397.8
Transactions recognised directly in equity
Exercise of share options 11.4 (1.1) - - 10.3 - 10.3
Payment of dividends - - - (199.4) (199.4) - (199.4)
Other reserves - 4.2 - (4.5) (0.3) (28.9) (29.2)
Total 11.4 3.1 - (203.9) (189.4) (28.9) (218.3)
Balance at 31 December 2016 676.9 23.4 (125.5) 1,900.7 2,475.5 716.6 3,192.1
Group
Attributable to shareholders of the CompanyPage 8 of 22
Statement of Changes in Equity of the Company for the year ended 31 December 2016:
Share
capital
Other
reserves
Accumulated
profits
Total
equity
$'m $'m $'m $'m
Balance at 1 January 2015 (2.5) 646.4 402.6 1,046.5
Total comprehensive income for the year
Profit for the year - - 171.7 171.7
Other comprehensive income for the year - (16.9) - (16.9)
Total - (16.9) 171.7 154.8
Transactions recognised directly in equity
Exercise of share options 19.1 (1.6) - 17.5
Payment of dividends - - (182.5) (182.5)
Other reserves - - 0.2 0.2
Total 19.1 (1.6) (182.3) (164.8)
Balance at 31 December 2015 665.5 (21.0) 392.0 1,036.5
Total comprehensive income for the year
Profit for the year - - 173.0 173.0
Other comprehensive income for the year - 8.8 - 8.8
Total - 8.8 173.0 181.8
Transactions recognised directly in equity
Exercise of share options 11.4 (1.1) - 10.3
Payment of dividends - - (199.4) (199.4)
Other reserves - - 0.1 0.1
Total 11.4 (1.1) (199.3) (189.0)
Balance at 31 December 2016 676.9 (13.3) 365.7 1,029.3
CompanyPage 9 of 22
7 CHANGES IN COMPANY’S SHARE CAPITAL
Share Capital
During the financial year, the Company issued 6,587,000 new ordinary shares
following the exercise of share options under the ComfortDelGro Employees’ Share
Option Scheme (ComfortDelGro Scheme).
As at 31 December 2016, the total number of issued shares was 2,156,851,663 (31
December 2015: 2,150,264,663).
Outstanding Shares – ComfortDelGro Employees’ Share Option Scheme
As at 31 December 2016, options to subscribe for 13,040,000 ordinary shares (31
December 2015: 19,627,000 ordinary shares) remained outstanding under the
ComfortDelGro Scheme.
The ComfortDelGro Scheme was not renewed following its expiry on 17 February
2013.
As at 31 December 2016, the Company does not hold any treasury shares.
8 AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF
COMFORTDELGRO CORPORATION LIMITED
Report on the Audit of the Financial Statements
Opinion
We have audited the Financial Statements of ComfortDelGro Corporation Limited
(the “Company”) and its subsidiaries (the “Group”) which comprise the Statements
of Financial Position of the Group and the Company as at 31 December 2016, and
the Income Statement, Comprehensive Income Statement, Statement of Changes in
Equity and Cash Flow Statement of the Group and Statement of Changes in Equity
of the Company for the year then ended, and notes to the Financial Statements,
including a summary of significant accounting policies.
In our opinion, the Consolidated Financial Statements of the Group and the
Statement of Financial Position and the Statement of Changes in Equity of the
Company are properly drawn up in accordance with the provisions of the
Companies Act, Chapter 50 (the “Act”) and Financial Reporting Standards in
Singapore (“FRSs”) so as to give a true and fair view of the financial position of the
Group and of the Company as at 31 December 2016 and of the financial
performance, changes in equity and cash flows of the Group and changes in equity
of the Company for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with Singapore Standards on Auditing
(“SSAs”). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are independent of the Group in accordance with the Accounting andPage 10 of 22
Corporate Regulatory Authority (“ACRA”) Code of Professional Conduct and Ethics
for Public Accountants and Accounting Entities (“ACRA Code”) together with the
ethical requirements that are relevant to our audit of the Financial Statements in
Singapore, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the ACRA Code. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of
most significance in our audit of the Financial Statements of the current year. These
matters were addressed in the context of our audit of the Financial Statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters.
Taxi licences and Goodwill impairment review
The Group reviews taxi licences with indefinite useful lives and goodwill for
impairment annually or when there is an impairment indication. Management
exercise significant judgements in the assumptions on inputs used in the discounted
cash flow forecasts to determine the recoverable amounts.
Our audit procedures included critically challenging the key assumptions on growth
rates and discount rates used by Management in the impairment review. We also
performed sensitivity analysis around the key inputs including growth rates and
discount rates used in the cash flow forecasts. We compared the growth rates to
recent business performance, trend analysis and the growth rate for the relevant
country. For the discount rate, we compared it to the weighted average cost of
capital. We found Management’s key assumptions to be within the reasonable
range of our expectations.
Valuation and completeness of provision for accident claims
The valuation and completeness of provisions for settlement of accident claims
involves estimation uncertainty. Management considers the probability and amount
of the expected settlement claims based on the number of claims lodged, recent
settlements, third party settlement data and accident claims statistics in determining
the provision for accident claims.
Our audit procedures included understanding the process used to determine the
provision for accident claims. We compared the number of claims and recent
settlements to accident claims statistics report issued by insurers; and
independently evaluate the reasonableness of the provision estimated by
Management. Based on our procedures, we found Management’s key assumptions
to be within the reasonable range of our expectations.
Information Other than the Financial Statements and Auditor’s Report Thereon
Management is responsible for the other information. The other information
comprises the information included in the annual report but does not include the
Financial Statements and our auditor’s report thereon. The Directors’ Statement was
obtained prior to the date of this auditor’s report and the remaining other information
included in the annual report is expected to be made available to us after that date.Page 11 of 22
Our opinion on the Financial Statements does not cover the other information and
we do not and will not express any form of assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read
the other information identified above when it becomes available and, in doing so,
consider whether the other information is materially inconsistent with the Financial
Statements or our knowledge obtained in the audit or otherwise appears to be
materially misstated.
If, based on the work we have performed on the other information that we obtained
prior to the date of this auditor’s report, we conclude that there is material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
When we read the other information included in the annual report, if we conclude
that there is a material misstatement therein, we are required to communicate the
matter to those charged with governance and take appropriate actions in
accordance with SSAs.
Responsibilities of Management and Directors for the Financial Statements
Management is responsible for the preparation of Financial Statements that give a
true and fair view in accordance with the provisions of the Act and FRSs, and for
devising and maintaining a system of internal accounting controls sufficient to
provide a reasonable assurance that assets are safeguarded against loss from
unauthorised use or disposition; and transactions are properly authorised and that
they are recorded as necessary to permit the preparation of true and fair Financial
Statements and to maintain accountability of assets.
In preparing the Financial Statements, Management is responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless
Management either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
The Directors’ responsibilities include overseeing the Group’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial
Statements as a whole are free from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with SSAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these Financial
Statements.
As part of an audit in accordance with SSAs, we exercise professional judgement
and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Financial
Statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient andPage 12 of 22
appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Group’s internal
control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
Management.
• Conclude on the appropriateness of Management’s use of the going concern
basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in
our auditor’s report to the related disclosures in the Financial Statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the Financial
Statements, including the disclosures, and whether the Financial Statements
represent the underlying transactions and events in a manner that achieves fair
presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of
the entities and business activities within the Group to express an opinion on the
Consolidated Financial Statements. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for
our audit opinion.
We communicate with the Directors regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that
were of most significance in the audit of the Financial Statements of the current year
and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such
communication.Page 13 of 22
Report on Other Legal and Regulatory Requirements
In our opinion, the accounting and other records required by the Act to be kept by
the Company and by those subsidiary corporations incorporated in Singapore of
which we are the auditors have been properly kept in accordance with the provisions
of the Act.
The engagement partner on the audit resulting in this independent auditor’s report is
Mr. Philip Yuen Ewe Jin.
Deloitte & Touche LLP
Public Accountants and
Chartered Accountants
Singapore
10 February 2017
9 ACCOUNTING POLICIES
Other than Note A in paragraph 5, The Group has applied accounting policies and
methods of computation in the Financial Statements for the current reporting year
consistent with those of the audited Financial Statements for the year ended 31
December 2015.
In the current financial year, the Group has adopted all the new and revised
Financial Reporting Standards (“FRSs”) that are relevant to its operations and
effective for annual periods beginning on 1 January 2016.
The adoption of these new and revised FRSs has no material effect on the amounts
reported for the current or prior years.
10 CHANGES IN ACCOUNTING POLICIES AND ESTIMATES
See above.Page 14 of 22
11 GROUP EARNINGS PER ORDINARY SHARE AND GROUP EARNINGS BEFORE
INTEREST, TAXATION, DEPRECIATION AND AMORTISATION (EBITDA)
Earnings per ordinary share
Full Year
2016
Full Year
2015
(i) Based on weighted average number of
ordinary shares in issue - cents 14.72 14.07
(ii) On a fully diluted basis (detailing any
adjustments made to the earnings) - cents 14.68 14.01
Group
EBITDA
Full Year
2016
Full Year
2015
(i) EBITDA ($'m) 840.0 858.2
(ii) EBITDA margin (%) 21.1 20.4
Group
12 NET ASSET VALUE PER ORDINARY SHARE
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
Net asset value per ordinary share
based on issued share capital - cents 114.77 108.60 47.72 48.20
Group CompanyPage 15 of 22
13 REVIEW OF GROUP PERFORMANCE
Performance Review
Group Revenue of $4,059.5m for 2016 was $52.0m or 1.3% lower compared to
$4,111.5m for 2015. While Group Revenue actually increased by $72.4m, this was
completely eroded by an unfavourable foreign currency translation of $124.4m.
The actual increase in revenue was at the Public Transport Services Business, the
Taxi Business and the Driving Centre Business offset by decreases at the
Automotive Engineering Services Business, the Inspection and Testing Services
Business, the Car Rental and Leasing Business and the Bus Station Business. Of
the unfavourable foreign currency translation of $124.4m, the weaker £ accounted
for $111.3m, the weaker RMB accounted for $10.4m, the weaker A$ accounted for
$2.4m and the weaker VND and MYR both accounted for $0.3m.
Group Operating Costs of $3,597.3m for 2016 were $63.5m or 1.7% lower
compared to $3,660.8m for 2015. While Operating Costs actually increased by
$48.4m, this was fully offset by the favourable foreign currency translation of
$111.9m of which the weaker £ accounted for $101.8m, the weaker RMB
accounted for $7.8m, the weaker A$ accounted for $2.1m and the weaker VND
and MYR both accounted for $0.2m. The actual increase in Operating Costs was
mainly from higher staff costs, higher repairs and maintenance costs, higher
depreciation, higher payments for contract services and higher premises costs
offset by lower fuel and electricity costs and lower materials and consumable
costs.
Group Operating Profit of $462.2m for 2016 was $11.5m or 2.6% higher compared
to $450.7m for 2015. If not for the unfavourable foreign currency translation of
$12.5m, Operating Profit would have increased by $24.0m or 5.3%.
Net Income from Investments of $13.9m for 2016 decreased by $1.1m or 7.3%
from $15.0m for 2015 due mainly to lower interest income from lower deposit
rates. Finance Costs decreased by $4.0m or 21.7% from $18.4m for 2015 to
$14.4m for 2016 due to the repayment of borrowings and lower interest rates
charged.
Share of Profit in Associate of $4.9m for 2016 was the same as that for 2015.
Group Profit before Taxation of $466.6m for 2016 was $14.4m or 3.2% higher
compared to $452.2m for 2015.
Taxation for the Group of $88.2m for 2016 was $0.2m or 0.2% lower than that for
2015 as higher profits were earned in the lower tax countries and lower profits
earned in the higher tax countries and from the write-back of over provisions
relating to prior years.
Group Profit attributable to Shareholders of the Company of $317.1m for 2016
increased by $15.2m or 5.0% compared to $301.9m for 2015.
Group Profit attributable to Non-Controlling Interests of $61.3m for 2016 decreased
by $0.6m or 1.0% compared to $61.9m for 2015.
Revenue from Overseas for 2016 was 37.3% of Group Revenue compared to
40.0% for 2015 due mainly to the unfavourable foreign currency translation. If not
for that, Overseas Revenue for 2016 would have been 39.2% of total Group
Revenue. Operating Profit from Overseas for 2016 of 40.5% of Group Operating
Profit was lower compared to 45.6% a year ago.Page 16 of 22
A segmental breakdown by Business is provided under item 17.
Revenue from the Group’s Public Transport Services Business of $2,309.1m for
2016 was $25.4m or 1.1% lower than the $2,334.5m for 2015 as the actual
revenue increase of $75.4m was completely eroded by an unfavourable foreign
currency translation of $100.8m from the weaker £ and A$.
Revenue from the Group’s Taxi Business of $1,340.8m for 2016 was $14.0m or
1.1% higher compared to $1,326.8m for 2015 as the actual revenue increase of
$35.2m was partly eroded by an unfavourable foreign currency translation of
$21.2m from the weaker £, RMB, A$ and VND.
Revenue from the Group’s Bus Station Business at Guangzhou of $26.9m for
2016 was $2.1m or 7.2% lower than the $29.0m for 2015 with lower passenger
volumes as a result of competition from the expanding rail network accounting for
$0.6m compounded by an unfavourable foreign currency translation of $1.5m from
the weaker RMB.
Revenue from the Group’s Automotive Engineering Services Business of
$330.5m for 2016 was $40.6m or 10.9% lower than the $371.1m for 2015 due
mainly to the lower selling prices and volume of diesel sold to our taxi drivers.
Revenue from the Group’s Inspection and Testing Services Business of
$107.1m for 2016 was $3.8m or 3.4% lower compared to the $110.9m for 2015.
Revenue from the Group’s Driving Centre Business of $40.0m for 2016 was
$0.8m or 2.0% higher than the $39.2m for 2015.
Revenue from the Group’s Car Rental and Leasing Business of $36.4m for 2016
was $2.0m or 5.2% lower than the $38.4m for 2015.
Statement of Financial Position
The financial position of the Group as at 31 December 2016 remained strong. Total
Equity increased by $179.5m from $3,012.6m as at 31 December 2015 to
$3,192.1m as at 31 December 2016 due to profits generated for the year partially
offset by the payment of dividends and the unfavourable impact on the Foreign
Currency Translation Reserve.
Total Assets decreased by $94.3m to $5,122.0m as at 31 December 2016 due
mainly to decreases in other receivables and prepayments and vehicles, premises
and equipment partly offset by higher trade receivables, arising mainly from timing
differences on contractual payments due from the authorities.
Total Liabilities decreased by $273.8m to $1,929.9m as at 31 December 2016 due
mainly to the reductions in borrowings and trade and other payables.
Cash Flow
The Group recorded a net cash outflow of $8.5m for 2016. As at 31 December
2016, the Group had short-term deposits and bank balances of $779.3m. After
accounting for the borrowings of $345.1m, the Group had a net cash position of
$434.2m compared to $229.2m as at 31 December 2015. The Group’s gross
gearing ratio was 10.8% as at 31 December 2016 compared to 18.5% as at 31
December 2015.Page 17 of 22
14 ANY VARIANCE BETWEEN PROSPECT STATEMENT PREVIOUSLY
DISCLOSED AND THE ACTUAL RESULTS
No forecast or prospect statement has been previously disclosed.
15 GROUP OUTLOOK
Revenue from the Public Transport Services Business in Singapore is expected to
be higher. Bus service revenue is expected to be higher this year with a full year
contribution of revenue under the Bus Contracting Model compared to four months’
contribution in 2016. Rail service revenue is expected to be higher with higher
ridership although this will be affected by the 4.2% fare reduction effective 30
December 2016. Revenue from the Australia Bus Business is expected to be
higher while revenue from the UK Bus Business is expected to decrease.
Revenue from the Bus Station Business in Guangzhou is expected to be lower
with competition from the high speed rail network.
Revenue from the Taxi Business is expected to be lower.
Revenue from the Automotive Engineering Services Business is expected to be
lower with the expected lower volume of diesel sold to our taxi drivers.
Revenue from the Driving Centre Business is expected to be maintained.
Revenue from the Inspection and Testing Services Business is expected to be
lower.
Revenue from the Car Rental and Leasing Business is expected to be lower.
With the challenging operating environment, costs will continue to be managed
prudently.
16 DIVIDEND
(a) Current Financial Period Reported On
The Directors are pleased to propose a tax-exempt one-tier final dividend of 6.05
cents (2015: 5.00 cents) per ordinary share.
Name of Dividend Final
Dividend Type Cash; Tax-exempt one-tier
Dividend Amount per ordinary share 6.05 cents
Tax Rate Exempt one-tier
(b) Corresponding Period of the Immediate Preceding Financial Year
Name of Dividend Final
Dividend Type Cash; Tax-exempt one-tier
Dividend Amount per ordinary share 5.00 cents
Tax Rate Exempt one-tierPage 18 of 22
(c) Date Payable
The proposed final dividend, if approved by the Shareholders at the Fourteenth
Annual General Meeting of the Company to be held on 26 April 2017, will be
payable on 15 May 2017.
(d) Books Closure Date
NOTICE IS HEREBY GIVEN that the Transfer Books and Register of Members of
the Company will be closed on 6 May 2017 for the purposes of determining
Shareholders’ entitlements to the proposed final dividend.
Duly completed and stamped transfers received by the Company’s Share
Registrars, B.A.C.S. Private Limited, 8 Robinson Road, #03-00 ASO Building,
Singapore 048544 up to 5.00 p.m. on 5 May 2017 will be registered to determine
Shareholders’ entitlements to the final dividend.
Shareholders (being depositors) whose securities accounts with The Central
Depository (Pte) Limited are credited with ordinary shares in the capital of the
Company as at 5.00 p.m. on 5 May 2017 will be entitled to the proposed final
dividend.Page 19 of 22
17 SEGMENT INFORMATION
Business Segments
Public Automotive Inspection
Transport Bus Engineering & Testing Car Rental Driving
Financial Year 2016 Services Taxi Station Services Services & Leasing Centre Elimination Total
$'m $'m $'m $'m $'m $'m $'m $'m $'m
Revenue
External sales 2,307.3 1,340.8 26.9 204.8 103.7 36.3 39.7 - 4,059.5
Inter-segment sales 1.8 - - 125.7 3.4 0.1 0.3 (131.3) -
TOTAL 2,309.1 1,340.8 26.9 330.5 107.1 36.4 40.0 (131.3) 4,059.5
RESULT
Operating Profit 178.3 167.5 12.2 50.7 34.8 8.1 10.6 - 462.2
Net Income from Investments 13.9
Finance Costs (14.4)
Share of Profit in Associate 4.9
Profit before Taxation 466.6
Taxation (88.2)
Profit after Taxation 378.4
Non-Controlling Interests (61.3)
Profit Attributable to Shareholders of the Company 317.1
OTHER INFORMATION
Additions to vehicles, premises and equipment 326.5 113.7 0.4 0.5 4.2 20.0 1.2 - 466.5
Additions to taxi licences 0.5 - - - - - - - 0.5
Depreciation expense 216.1 152.6 1.9 2.2 6.7 12.8 2.2 - 394.5
Amortisation expense 1.5 - - - - - - - 1.5
Provision for impairment loss recognised - 4.2 - - - - - - 4.2
in income statement
STATEMENT OF FINANCIAL POSITION
ASSETS
Segment assets 1,330.7 2,240.3 18.9 56.0 63.6 84.7 23.3 - 3,817.5
Goodwill 31.4 380.6 - - 13.5 1.5 0.5 - 427.5
Associates 11.2
Cash, fixed deposits, equities & bonds 842.2
Deferred tax assets 23.6
Consolidated total assets 5,122.0
LIABILITIES
Segment liabilities 318.0 839.2 27.4 51.5 21.3 11.5 15.2 - 1,284.1
Borrowings 345.1
Income tax payable 48.5
Deferred tax liabilities 252.2
Consolidated total liabilities 1,929.9Page 20 of 22
Public Automotive Inspection
Transport Bus Engineering & Testing Car Rental Driving
Financial Year 2015 Services Taxi Station Services Services & Leasing Centre Elimination Total
$'m $'m $'m $'m $'m $'m $'m $'m $'m
Revenue
External sales 2,332.5 1,326.8 29.0 238.5 107.5 38.3 38.9 - 4,111.5
Inter-segment sales 2.0 - - 132.6 3.4 0.1 0.3 (138.4) -
TOTAL 2,334.5 1,326.8 29.0 371.1 110.9 38.4 39.2 (138.4) 4,111.5
RESULT
Operating Profit 177.7 163.9 12.5 41.2 37.7 9.2 8.5 - 450.7
Net Income from Investments 15.0
Finance Costs (18.4)
Share of Profit in Associate 4.9
Profit before Taxation 452.2
Taxation (88.4)
Profit after Taxation 363.8
Non-Controlling Interests (61.9)
Profit Attributable to Shareholders of the Company 301.9
OTHER INFORMATION
Additions to vehicles, premises and equipment 339.3 292.3 0.7 1.6 3.8 24.6 7.3 - 669.6
Additions to taxi licences 1.5 - - - - - - - 1.5
Depreciation expense 200.8 158.4 2.0 2.3 6.4 12.3 2.4 - 384.6
Amortisation expense 4.7 - - - - - - - 4.7
Provision for impairment loss recognised - 1.1 - - - - - - 1.1
in income statement
STATEMENT OF FINANCIAL POSITION
ASSETS
Segment assets 1,291.7 2,334.6 21.6 66.5 66.4 84.5 33.8 - 3,899.1
Goodwill 33.6 393.5 - - 13.5 1.5 0.5 - 442.6
Associates 10.2
Cash, fixed deposits, equities & bonds 839.4
Deferred tax assets 25.0
Consolidated total assets 5,216.3
LIABILITIES
Segment liabilities 317.7 884.3 26.4 93.5 21.3 12.7 14.2 - 1,370.1
Borrowings 558.6
Income tax payable 49.1
Deferred tax liabilities 225.9
Consolidated total liabilities 2,203.7Page 21 of 22
Geographical segmental information for Full Year 2016
$'m $'m $'m $'m $'m $'m
Singapore 2,545.9 2,468.7 1,970.0 1,937.6 340.9 520.1
United Kingdom/ Ireland 923.9 1,024.1 438.5 492.9 63.9 78.6
Australia 385.5 387.1 776.4 764.4 31.4 32.6
China 192.4 219.7 330.5 367.5 28.1 33.3
Vietnam 8.9 8.7 12.8 14.2 2.4 5.4
Malaysia 2.9 3.2 4.4 5.5 0.3 1.1
Total 4,059.5 4,111.5 3,532.6 3,582.1 467.0 671.1
* Comprising vehicles, premises, equipment, taxi licences and goodwill.
2016 2015 2016 2015 2016 2015
Non-current assets* non-current assets*
Additions to
Revenue
18 BREAKDOWN OF REVENUE
Full Year
2016
Full Year
2015
Increase/
(Decrease)
$'m $'m %
(a) Revenue reported for first half year 2,017.9 2,000.7 0.9
(b) Profit after taxation before deducting 189.3 179.0 5.8
Non-Controlling Interests reported
for first half year
(a) Revenue reported for second half year 2,041.6 2,110.8 (3.3)
(b) Profit after taxation before deducting 189.1 184.8 2.3
Non-Controlling Interests reported
for second half year
19 BREAKDOWN OF TOTAL ANNUAL DIVIDEND (IN DOLLAR VALUE)
$'m $'m
Ordinary shares (tax-exempt one-tier)
- Interim 91.6 85.9
- Final (proposed) 130.5 107.8
Total 222.1 193.7
Full Year
2015
Full Year
2016
20 INTERESTED PERSON TRANSACTIONS
The Group does not have any Shareholders’ mandate for interested person
transactions pursuant to Rule 920 of the Listing Manual.Page 22 of 22
21 DISCLOSURE OF PERSONS OCCUPYING MANAGERIAL POSITIONS
Pursuant to Rule 704(13) of the Listing Manual of the Singapore Exchange
Securities Trading Limited, we confirm that as at 31 December 2016, none of the
persons occupying managerial positions in the Company or any of its principal
subsidiaries is a relative of a Director or Chief Executive Officer or Substantial
Shareholder of the Company.
22 CONFIRMATION PURSUANT TO RULE 720(1) OF THE LISTING MANUAL
The Company confirms that it has procured the Undertakings from all its Directors
and Executive Officers in the format set out in Appendix 7.7 pursuant to Rule
720(1) of the Listing Manual.
BY ORDER OF THE BOARD
Chan Wan Tak, Wendy
Company Secretary
10 February 2017