The Group’s Revenue for the financial year 2011 second quarter ended 30 June 2011 (“2Q-2011”) of $25.4 million grew 36% compared to corresponding period in the prior year.

This resulted in the revenue performance of the Group for period 1 January 2011 to 30 June 2011 (“1H-2011”) to be 37% higher than same period last year. All operating

subsidiaries within the Group registered higher revenues for the half-year period compared to last year. The growth are mainly due to the consolidation of results of subsidiaries

acquired during the latter half of last year, namely Promoter Hydraulics Pte Ltd (“PHPL”) and Marshal Systems Pte Ltd.

Net Profit Before Tax (“NPBT”) for 1H-2011 of $5.5 million is marginally higher than that of the same period last year. NPBT for 1H-2011 is derived at after taking into account the

charges relating to acquisition activities amortization of intangibles and inventory revaluation amounting to $3.8 million. In addition, the Group also took an impairment provision of

$7.7 million against receivables and its investment in Marine Accomm Pte Ltd (“MAPL”), which is under receivership. During 1H-2011, the Group disposed some of its investment in

quoted equities, primarily in United Envirotech Ltd which realized a gain of $8.0 million. This gain on disposal coupled with the gain on bargain purchase of $3.2 million in the

acquisition of Viking Facilities and Management Pte Ltd (formerly known as Yeo & Chiang Pte Ltd) which primarily owned a 133,000 square foot industrial land and factory, were

able to offset these non-operating charges. Excluding the above and other non-operating items, the adjusted NPBT of the Group for 1H-2011 will be $5.8 million. Considering the

items of similar nature in the corresponding period last year, the adjusted NPBT of the Group for first half of the year 2010 will be $3.6 million – a 61% increase year-on-year.

Gross Profit Margin for the Group was affected in the first half of this year primarily in the offshore and marine business units. Generally, the businesses are experiencing higher

cost of goods purchased, coupled with the depreciating US Dollar from overseas contracts resulted in the margin pressure.

As of 30 June 2011, the number of shares for the Group stands at approximately 571 million (approximately 551 million as at 31 December 2010). On a fully diluted basis, the

Earnings Per Share for 1H-2011 is 0.9 cents and comparable to same period last year.

The Group is of the view that the acquisition of the plant property is opportune given the operational efficiency it will be able to achieve with all its offshore and marine businesses

housed under one common facility and the potential value appreciation. The disposal of investment in quoted equities were taken to raise cash for paring down loans and

repayment of acquisition obligations, and the Group is of the view that it is prudent not to tie up its Net Assets in quoted equities which it has little control over and given the stock

market volatility.

periods.

On a prudent note, the Group has taken an impairment provision on its investment in MAPL while it concurrently seek legal advice on this matter. In the interim, the Group has filed

a complaint with Commercial Affairs Department to investigate into suspected financial irregularities in MAPL who has since gone into receivership. Further updates will be provided

as and when significant development unfolds on this matter.