Trading and Distribution Division

Our Trading and Distribution Division reported a 4.1% dip in external revenue to $15.0 million in FY2009. Due to the higher margins obtained from our overseas sales, profit before interest and tax jumped 83.2% to $3.8 million for the year.

Most of the major projects delivered in FY2009 arose from exporting our product range to overseas markets such as Malaysia, Indonesia and Vietnam and also to the East African nations. We experienced growth in overseas sales compared to FY2008 with the bulk of contributions from East Africa and Vietnam. Product sales in Singapore weakened due to suppliers cutting back on their budget in the wake of the financial crisis experienced at the beginning of 2009.

The Division's strategy for expansion is to ride on the growth of the switchgear industry to market the existing agency lines and focus on strengthening the branding of our Rudolf^TM range of controllers and meters to both local and overseas markets through our reliable channel distributors. We continue to focus on volume generation per customer count as compared to project count and double our efforts on retrofit and AA (Additions and Alterations) projects where there is still good demand.

Moving forward, we see FY2010 as another challenging and competitive year for the Singapore market due to uncertainties with the pace of the economic recovery. As with FY2009, we see tremendous potential in the international markets and we are looking to explore overseas opportunities and further penetrate into the regional new and untapped markets in Cambodia and Laos. We are on the lookout for any overseas tenders in which we can showcase our product range.

We will continue to build on our partnership with Socomec involving the Green Mark Scheme initiative that was started in 2008 and we are looking to partner with them again to launch another awareness event to promote this scheme for new buildings to be Green Mark certified through the use of our sub-meters in monitoring energy consumption of key building services and end-user / tenant energy usage.

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