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Multi Ways Holdings Reports Robust Financial Performance in Fiscal Year 2023 Results

Multi Ways Holdings Limited
Multi Ways Holdings Limited

SINGAPORE, May 16, 2024 (GLOBE NEWSWIRE) -- Multi Ways Holdings Limited (“Multi Ways” or the “Company”) (NYSE American: MWG), a leading supplier of a wide range of heavy construction equipment for sales and rental in Singapore and the surrounding region, today announced fiscal year 2023 financial results.

"We are pleased to report on the strategic advancements Multi Ways Holdings Limited has achieved since our IPO a year ago," said Mr. James Lim, Chairman and Chief Executive Officer of Multi Ways Holdings Limited. "Our recent acquisition of cutting-edge SANY equipment and the formation of strategic partnerships underscore our commitment to delivering superior solutions to our customers across the region. With over two decades of industry experience, we have established ourselves as a reliable and trusted provider of heavy construction equipment.”

“Despite a decrease in revenue, our focus on cost management and fleet optimization has resulted in improved net income and a strengthened financial position. The significant enhancement in our cash flows and working capital demonstrates our resilience and adaptability.”

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“Looking ahead, we are committed to maintaining our role as a comprehensive provider for heavy construction equipment needs. Our ongoing fleet renewal and expansion initiatives are designed to meet the evolving requirements of our clients, ensuring they have access to the most advanced and dependable machinery available. We remain focused on delivering exceptional value to our shareholders, customers, and the broader community, positioning Multi Ways for continued success in the competitive landscape," concluded Mr. Lim.

Fiscal Year 2023 Financial Highlights

  • Our total revenue decreased by approximately $2.3 million or approximately 6.1% to approximately $36.0 million for the year ended December 31, 2023 from approximately $38.4 million for the year ended December 31, 2022. The decrease was mainly attributable to the decrease demand in our equipment sales of approximately $7.5 million because of decrease in overseas demand.

  • Our cost of revenues decreased by approximately $1.3 million or approximately 4.4% to approximately $27.4 million for the financial year ended December 31, 2023 from approximately $28.6 million for the financial year ended December 31, 2022. Such decrease was mainly attributable to the decrease cost of revenues for the demand in our equipment sales of approximately $1.5 million and offset the increase in Services of approximately $0.3 million in 2023.

  • Our total gross profit amounted to $8.7 million and $9.7 million for fiscal years ended December 31, 2023 and 2022, respectively. Our overall gross profit margins were approximately 24.0% and approximately 25.4% for fiscal years ended December 31, 2023 and 2022, respectively. Our total gross profit decrease was generally due to the lower profit margin through diversified purchasing networks from across various countries.

  • Selling and distribution expenses mainly included promotion and marketing expenses and transportation expenses for inbound and outbound shipments. Our selling and distribution expenses were approximately $1.0 million and approximately $1.5 million for the fiscal years ended December 31, 2023 and 2022, respectively, representing approximately 2.6% and approximately 3.9% of our total revenue for the corresponding years.

  • Administrative expenses were approximately $10.8 million and approximately $6.7 million for the years ended December 31, 2023 and 2022, respectively, representing approximately 29.9% and approximately 17.6% of our total revenue for the corresponding financial years.

    • Staff costs mainly represented the salaries, employee benefits and retirement benefit costs to our employees, directors’ remuneration and directors’ fees. Our staff costs were $4.8 million and $3.9 million for the fiscal years ended December 31, 2023 and 2022, respectively.

  • Net income amounted to $1.8 million and approximately $1.0 million for the fiscal years ended December 31, 2023 and 2022, respectively.

Cash Flows Summary

  • Cash and cash equivalents were approximately $7.1 million as of December 31, 2023, compared to approximately $1.0 million as of December 31, 2022.

  • Cash provided by operating activities was approximately $0.06 million for the fiscal year ended December 31, 2023, compared to approximately $0.9 million for the fiscal year ended December 31, 2022

  • Cash generated from investing activities was approximately $6.8 million for the fiscal year ended December 31, 2023, primarily consisting of the purchases of property, plant and equipment of approximately $2.0 million; the investment in equity securities of $2.2 million and offset by the proceeds from disposal of property and equipment of approximately $10.9 million and investment in financial assets available for sales of approximately $0.1 million. This compares to net cash used in investing activities of approximately $1.1 million for the fiscal year ended December 31, 2022.

  • Cash used in financing activities for the fiscal year ended December 31, 2023 was $0.9 million, which mainly consisted of bank loan repayment of $7.4 million; the repayment of lease liabilities of $6.4 million; the payment of dividend of $10.5 million; loan from director of $9.9 million and proceeds from share issuance net of deferred offering costs of $13.5 million. This compares to cash used in financing activities of $0.3 million for the fiscal year ended December 31, 2022.

Balance Sheet Summary

  • Total assets were approximately $58.0 million, and total liabilities were approximately $36.2 million at December 31, 2023.

  • Working capital was approximately $20.9 million at December 31, 2023, versus approximately $2.9 million at December 31, 2022.

  • Shareholders’ equity was approximately $21.8 million at December 31, 2023, as compared to approximately $6.3 million at December 31, 2022.

About Multi Ways Holdings Limited 
Multi Ways Holdings supplies a wide range of heavy construction equipment for sales and rental in Singapore and the surrounding region. With more than two decades of experience in the sales and rental of heavy construction equipment business, the Company is widely established as a reliable supplier of new and used heavy construction equipment to customers from Singapore, Australia, UAE, Maldives, Indonesia, and the Philippines. With our wide variety of heavy construction equipment in our inventory and complementary equipment refurbishment and cleaning services, Multi Ways is well-positioned to serve customers as a one-stop shop. For more information, visit www.multiwaysholdings.com.

Safe Harbor Statement
This press release contains forward-looking statements. In addition, from time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Such forward-looking statements relate to future events or our future performance, including: our financial performance and projections; our growth in revenue and earnings; and our business prospects and opportunities. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “hopes” or the negative of these or similar terms. In evaluating these forward-looking statements, you should consider various factors, including: our ability to change the direction of the Company; our ability to keep pace with new technology and changing market needs; and the competitive environment of our business. These and other factors may cause our actual results to differ materially from any forward-looking statement. Forward-looking statements are only predictions. The forward-looking events discussed in this press release and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties, and assumptions about us. We are not obligated to publicly update or revise any forward-looking statement, whether as a result of uncertainties and assumptions, the forward-looking events discussed in this press release and other statements made from time to time by us or our representatives might not occur.

Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC 
Tel: 347-947-2093
Email: matthew@strategic-ir.com

*** tables follow ***

 

MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Currency expressed in United States Dollars (“US$”))

 

 

 

 

 

 

 

As of December 31,

 

 

2023

 

2022

 

 

 

$’000

 

 

 

$’000

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

7,073

 

 

 

1,003

 

Accounts receivable, net

 

 

5,341

 

 

 

8,021

 

Inventories

 

 

36,692

 

 

 

31,442

 

Amounts due from related parties

 

 

1,068

 

 

 

50

 

Financial assets available for sales

 

 

242

 

 

 

325

 

Deposits, prepayments and other receivables

 

 

1,965

 

 

 

3,230

 

Total current assets

 

 

52,381

 

 

 

44,071

 

 

 

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,817

 

 

 

7,218

 

Right-of-use assets

 

 

1,592

 

 

 

1,489

 

Investment in equity securities

 

 

2,200

 

 

 

-

 

Deferred tax assets

 

 

11

 

 

 

8

 

Total non-current assets

 

 

5,620

 

 

 

8,715

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

58,001

 

 

 

52,786

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

4,758

 

 

 

4,781

 

Customer deposits

 

 

3,238

 

 

 

5,884

 

Amounts due to related parties

 

 

15,099

 

 

 

17,167

 

Bank borrowings

 

 

4,588

 

 

 

8,862

 

Lease liabilities

 

 

3,482

 

 

 

3,484

 

Income tax payable

 

 

313

 

 

 

1,007

 

Total current liabilities

 

 

31,478

 

 

 

41,185

 

 

 

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

 

 

 

Bank borrowings

 

 

431

 

 

 

3,175

 

Lease liabilities

 

 

4,265

 

 

 

2,114

 

Total long-term liabilities

 

 

4,696

 

 

 

5,289

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

36,174

 

 

 

46,474

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

 

 

 

Ordinary share, par value US$0.00025, 400,000,000 shares authorized, 30,840,000 and 24,800,000 ordinary shares issued and outstanding as of December 31, 2023 and 2022, respectively

 

 

8

 

 

 

6

 

Additional paid-in capital

 

 

18,945

 

 

 

5,440

 

Retained earnings

 

 

3,024

 

 

 

1,235

 

Non-controlling interest

 

 

-

 

 

 

50

 

Accumulated other comprehensive loss

 

 

(150

)

 

 

(419

)

Total shareholders’ equity

 

 

21,827

 

 

 

6,312

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

58,001

 

 

 

52,786

 


MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Currency expressed in United States Dollars (“US$”))

   

 

 

Financial Years ended December 31,

 

 

2023

 

2022

 

2021

 

 

 

$’000

 

 

 

$’000

 

 

 

$’000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues, net

 

 

36,016

 

 

 

38,359

 

 

 

33,406

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue

 

 

(27,366

)

 

 

(28,617

)

 

 

(24,049

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

8,650

 

 

 

9,742

 

 

 

9,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating cost and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling and distribution

 

 

(952

)

 

 

(1,502

)

 

 

(1,114

)

General and administrative

 

 

(10,776

)

 

 

(6,745

)

 

 

(6,609

)

Total operating cost and expenses

 

 

(11,728

)

 

 

(8,247

)

 

 

(7,723

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit/(Loss) from operations

 

 

(3,078

)

 

 

1,495

 

 

 

1,634

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Gain on early termination on lease liability

 

 

113

 

 

 

-

 

 

 

-

 

Gain from disposal of plant and equipment

 

 

5,048

 

 

 

2

 

 

 

305

 

Interest income

 

 

57

 

 

 

*

 

 

 

19

 

Interest expense

 

 

(1,105

)

 

 

(748

)

 

 

(716

)

Dividend income

 

 

16

 

 

 

7

 

 

 

-

 

Government grant

 

 

22

 

 

 

81

 

 

 

109

 

Foreign exchange (loss) gain, net

 

 

(43

)

 

 

(93

)

 

 

(44

)

Other income

 

 

656

 

 

 

813

 

 

 

724

 

Total other income, net

 

 

4,764

 

 

 

62

 

 

 

397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

1,686

 

 

 

1,557

 

 

 

2,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

53

 

 

 

(529

)

 

 

(230

)

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

 

1,739

 

 

 

1,028

 

 

 

1,801

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to non-controlling interest

 

 

50

 

 

 

(50

)

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO EQUITY HOLDER OF THE COMPANY

 

 

1,789

 

 

 

978

 

 

 

1,801

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

 

0.06

 

 

 

0.04

 

 

 

0.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted (‘000)

 

 

29,284

 

 

 

24,800

 

 

 

24,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO EQUITY HOLDER OF THE COMPANY

 

 

1,789

 

 

 

978

 

 

 

1,801

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

269

 

 

 

(74

)

 

 

(345

)

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME

 

 

2,058

 

 

 

904

 

 

 

1,456

 

 

*  This figure is immaterial


MULTI WAYS HOLDINGS LIMITED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Currency expressed in United States Dollars (“US$”))

 

 

 

 

 

 

 

 

 

Financial Years ended December 31,

 

 

2023

 

2022

 

2021

 

 

 

$’000

 

 

 

$’000

 

 

 

$’000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income before tax

 

 

1,686

 

 

 

1,557

 

 

 

2,031

 

Adjustments to reconcile net income to net cash provided by operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of property and equipment

 

 

907

 

 

 

800

 

 

 

822

 

Depreciation of right-of-use assets

 

 

866

 

 

 

828

 

 

 

775

 

Inventories written down

 

 

452

 

 

 

-

 

 

 

1,508

 

Written off of advance to suppliers

 

 

956

 

 

 

-

 

 

 

-

 

Gain on disposal of property and equipment

 

 

(5,048

)

 

 

(2

)

 

 

(305

)

Gain on early termination on lease liability

 

 

(113

)

 

 

-

 

 

 

-

 

Provision (reversal) of impairment of trade receivables

 

 

145

 

 

 

193

 

 

 

(110

)

Loss on revaluation of quoted share

 

 

22

 

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

1,763

 

 

 

(2,644

)

 

 

710

 

Inventories

 

 

3,631

 

 

 

940

 

 

 

(2,757

)

Deposits, prepayments and other receivables

 

 

408

 

 

 

1,702

 

 

 

(1,900

)

Accounts payable and accrued liabilities

 

 

(2,119

)

 

 

1,964

 

 

 

(1,329

)

Customer deposits

 

 

(2,826

)

 

 

(4,387

)

 

 

5,797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax payable

 

 

(675

)

 

 

(41

)

 

 

388

 

Net cash provided by operating activities

 

 

55

 

 

 

910

 

 

 

5,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(1,955

)

 

 

(817

)

 

 

-

 

Proceeds from disposal of property and equipment

 

 

10,894

 

 

 

2

 

 

 

343

 

Investment in equity securities

 

 

(2,200

)

 

 

-

 

 

 

-

 

Proceeds from/ (investment in) financial assets available for sales

 

 

71

 

 

 

(325

)

 

 

-

 

Net cash generated from (used in) investing activities

 

 

6,810

 

 

 

(1,140

)

 

 

343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Repayment of bank borrowings

 

 

(7,369

)

 

 

(105

)

 

 

(3,712

)

Repayment of lease liabilities

 

 

(6,369

)

 

 

(114

)

 

 

(1,046

)

Proceeds from shares issuance net of deferred offering costs

 

 

13,506

 

 

 

-

 

 

 

-

 

Payment of dividends

 

 

(10,524

)

 

 

(77

)

 

 

-

 

Loan from director

 

 

9,881

 

 

 

-

 

 

 

-

 

Net cash used in financing activities

 

 

(875

)

 

 

(296

)

 

 

(4,758

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect on exchange rate change on cash and cash equivalents

 

 

80

 

 

 

(4

)

 

 

(7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in cash and cash equivalent

 

 

6,070

 

 

 

(530

)

 

 

1,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BEGINNING OF YEAR

 

 

1,003

 

 

 

1,533

 

 

 

325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

END OF YEAR

 

 

7,073

 

 

 

1,003

 

 

 

1,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

 

 

 

 

Cash (paid) refund for income taxes

 

 

(675

)

 

 

(40

)

 

 

158

 

Cash paid for interest

 

 

1,051

 

 

 

748

 

 

 

717