President's Statement Dear shareholders,
This year’s report comes at a time when world markets are grappling with one of the most formidable economic crises in history. Thus it is none too surprising that businesses, big and small, from every corner of the globe are feeling the heat and strain from the mounting uncertainty arising from this turbulence. ISDN too, was not spared from these surging headwinds. Despite this, the Group managed to grow both top and bottom lines. Net profit for FY2008 rose by 16.4% from $7.0 million to $8.2 million, backed by revenue growth of 13.2% to $116.4 million, from $102.9 million. And gross profit margin inched higher to 30.0%, from 26.1% last year. Earnings per share increased by 7.2% from 3.21 Singapore cents to 3.44 Singapore cents while cash and cash equivalents stood at $15.3 million, after taking into account the acquisition of our joint venture company, Dirak Asia Pte Ltd, and our subsidiary company, TDS Technology Pte Ltd. Net cash generated from operating activities strengthened from $3.5 million to $4.6 million. In view of this performance, the Board of Directors has proposed final dividend of 0.25 Singapore cents per ordinary share. The year ahead however, may prove to be one of the most challenging for the Company to date, as the global economic slowdown unfolds. It thus becomes imperative that we remain nimble and proactive in our pursuit for new business opportunities and newer revenue streams in the quest to preserve shareholder value and to build on our repertoire of capabilities. Just recently, in March 2009, ISDN inked a new landmark joint venture with German partners to form W2Energy to pave our entry into the fast-growing clean renewable energy sector. A total of $1.0 million will be invested into W2Energy that will be principally engaged in the business of environmental control and alternative energy. With its unique and proprietary ability to convert organic wastes including plastic and wood into synthetic diesel, W2Energy will be the first company of its kind in this region. As such, the business holds exciting prospects for the Group as well as for our customers and the general economy by its ability to create new jobs, recycle the world’s precious resources and contribute to environmental sustainability by eliminating wastes in a controlled manner. W2Energy has secured a 20-year licensing agreement from Dr Christian Koch, a German scientist and a visiting university professor at several German universities, who is also one of the partners in W2Energy, together with Mr Steffan Kaiser, a German businessman. To-date, Dr Koch’s patented catalytic depolymerisation method has been successfully supplied to and implemented in plants in the U S, Spain, Mexico, Germany and Canada, with excellent results, garnering as high as 80% conversion yield rate. W2Energy aims to target both developed and emerging markets including the Asia-Pacific. New business developments such as W2Energy provide fresh impetus for the Group. However, owing to the less than rosy external macro environment, the Group will adopt a more cautious stance to our business operations and outlook. The Group remains steadfast in our pursuit for business excellence and I would like to take this opportunity to thank our Board of Directors, management and staff for their relentless hard work in these trying times. Let me also extend my sincere appreciation to our customers, suppliers and business associates for their continued support.
Teo Cher Koon |
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