OUTSTANDING SMEs RECOGNISED FOR

THEIR ACHIEVEMENTS

SME Growth Excellence Recognition identifies

50 of Singapore’s best small and medium enterprises  

28 May, 2008 [Singapore] – They are the hidden gems of Singapore’s SME community – 50 companies who solely through financial performance have earned public recognition. 

The award winners of the second annual SME Growth Excellence Recognition have been chosen for their outstanding achievements in five categories based on their audited financial results.   

The SME Growth Excellence Recognition is an initiative of DP Information Group (DP Info) – Singapore’s leading provider of business and credit information services and is co-organised by HSBC.  The Recognition is supported by the Infocomm Development Authority of Singapore, IE Singapore and SPRING Singapore. 

The five categories are:

• SME Growth Excellence for Sales/Turnover – recognises SMEs with a starting sales/turnover in excess of $20 million and based on the increase in sales/turnover over a two-year period.
• SME Growth Excellence for Most Promising Enterprises (NEW) - recognises SMEs with a sales/turnover between $10 million and $20 million and based on the increase in sales/turnover over a two-year period.
• SME Growth Excellence for Net Profit – recognises SMEs based on the increase in net profit over a two-year period.
• SME Growth Excellence for Credit Ratings – recognises SMEs with improvements in their credit ratings.
• SME Growth Excellence for Top Internationalising SMEs – recognises SMEs with the highest growth in overseas sales/turnover over a two-year period.

There are 10 winners in each category. There is no application or subjective judging involved, making this the most objective SME award of its type. 

Ms Chen Yew Nah, Managing Director of DP Info said the categories reflect the priorities of SMEs and are consistent with the findings of the SME Development Survey, also conducted by DP Info. 

“The first three categories focus on sales and profits – the traditional measurement of a company’s financial success.  The 2007 SME Development Survey found Singapore SMEs were achieving impressive increases in sales and profitability. One in five SMEs made more than $1 million profit a year while 6% generate more than S$5 million in profit.  So the companies recognised in these categories have outperformed a very strong field.” 

“The credit rating category has never been more important for SMEs, especially as the world appears to be coming into a period of tightening credit.  Put simply, companies with good credit ratings will get access to funding, those with poor credit ratings will find it more challenging. So if a company wishes to grow it must pay attention to its credit risk profile. 

“The 2007 SME Development Survey also found 70% of Singapore’s SMEs generate some revenue from overseas. We all know Singapore SMEs must internationalise to expand and the companies recognised by this category are examples of how it can be done,” Ms Chen said.  

As Ms Tan Siew Meng, Head of Commercial Banking for HSBC explains, companies must be profitable and maintain the same or better credit rating in order to qualify for the SME Growth Excellence Recognition.  

“When it comes to financial performance, numbers talk.  That’s why these SMEs can be judged as worthy of recognition.  Once a company complies with the criteria, they are then ranked against their peers. This means only the best of the best are singled out for acknowledgement.” 

“This year, there is a new category of Most Promising Enterprises, based on companies with sales between $10 million and $20 million. The Most Promising SMEs are small companies with big futures. They have proven that they have a sustainable business model with great potential.  With the right advice and direction these companies can make it to the big league.”  

“Of particular merit are the 10 companies in the Internationalising category. From HSBC’s experience working with enterprises around the world, we know how competitive the business environment can be. The world of international business is no place for the faint hearted, and the fact that each of these companies is generating substantial income from other countries shows the strength of their business,” Ms Tan said. 

Encouragingly, the number of qualifying companies in each category has increased compared to last year, which means Singapore SMEs are performing strongly.  

The number of qualifying companies in the turnover category increased from 15 to 31; in the profit category the increase was from 40 to 86; in the credit rating category the increase in companies was from 15 to 23; and in the internationalising category the number of qualifying companies rose from 49 to 114.  

The highest ranked companies in each category are: 

SME Growth Excellence for Sales/Turnover

TARGET ASSET MANAGEMENT PTE LTD specialized in equity investment, acting as the manager of the Target Asian Fund which is focuses on the management of a portfolio comprise mainly ex-Japan equities in Asia.  

SME Growth Excellence for Most Promising Enterprises

MOOREAST PTE LTD specializes in the provision of mooring services to the maritime and offshore industry. The company clientele currently span across regions such as South East Asia, East Asia and Australia.  

SME Growth Excellence for Net Profit

A.C.T. HOLDINGS PTE LTD is engaged in the provision of engineering, management, consultancy, research activities and property investments, focusing on a few niches like landed homes in desirable suburban locations, and boutique apartments catering to the young, urban professional.  The company’s current projects include a joint venture with Sin Heng Chan Pte Ltd, rehabilitating the disused Cathay Apartments into 50 units of urban studios, to be named "NOMU" (North of Museum Area) and 12 strata semi-detached at One Mount Rosie Road.

SME Growth Excellence Recognition for Credit Ratings

FACTRONICS SYSTEMS ENGINEERING PTE LTD is a full service engineering company specializing in advanced factory and warehousing automation applications. Offering a full range of services from conceptualization to design to installation to maintenance, the company handles a number of services for turnkey Factory Automation (FA) solutions, ranging from Logistic Handling Systems, Conveyor Systems, Robotic Systems, Cleanroom Systems, Software and Identification Systems and Laser Marking and Engraving Systems. 

SME Growth Excellence for Internationalising SMEs

CABLES INTERNATIONAL PTE. LTD. is engaged in the provision of electrical products and solutions to Asia Pacific and Middle East companies in the oil and gas sector. Recently, the company was selected by Keppel Shipyard to supply all the cables for the world’s first LNG Floating Storage and Regassification Unit (FSRU).

SME Growth Excellence Recognition

2008 Recognition Luncheon

APPENDIX 1 

RECOGNITION RECIPIENTS FOR

2008 SME GROWTH EXCELLENCE RECOGNITION

SME Growth Excellence for Sales/Turnover

SME Growth Excellence for Most Promising Enterprises

SME Growth Excellence for Net Profit  

SME Growth Excellence for Credit Ratings 

SME Growth Excellence for Internationalising SMEs  

APPENDIX 2

SME GROWTH EXCELLENCE RECOGNITION

DEFINITIONS AND RATIONALISATION 

The Singapore SME Growth Excellence companies are selected and ranked based on their audited financial figures i.e. Sales/Turnover or Net Profit for financial period ending between 1 June 2006 and 31 May 2007. Comparative financial information is extracted from the companies’ latest financial statements. 

1. Qualification Criteria 

To qualify for the Recognition, companies must satisfy the following criteria: 

• Be registered with the Accounting and Corporate Regulatory Authority (ACRA) as a limited or private limited company. Only limited exempt private companies which voluntarily submit their audited financial statements, or whose financials are available from ACRA, will be included in the ranking exercise.  Branches of foreign companies, Cooperatives and Company Limited by Guarantee are excluded.
• Conducted at least 2 full years of operation.
• Have relevant audited financial statements directly submitted to DP Information Network Pte Ltd or be available from ACRA.  Companies will be excluded from the ranking where the information is not available or incomplete.  Examples include the limited exempt private companies which are not required to file their financial statements or where Sales/Turnover figures are not presented in the audited statements.
• Be Ranked in SME500 and/or Emerging 200 for 2 years.
• Have an annual Sales/Turnover of less than SGD 80 million.
• Have Fixed Assets of less than SGD 15 million.
• Have at least 30% Singapore local equity ownership and not be a subsidiary of a Public Listed Company.
• Have an Investment Grade (DP1 – DP4) or High Yield (DP5 – DP6) DP Credit Rating.

• For SME Growth Excellence for Sales/Turnover, recipients must:
  • Be profitable during both the SME500 ranking periods
  • Have attained at least $20 million in Sales / Turnover in the previous SME500 Ranking Period
  • Must also attain a profit margin of at least 5% in the current SME500 Ranking Period
  • Have a credit rating that is at least the same or better as compared to the previous year
• For SME Growth Excellence for Most Promising Enterprises, recipients must:
  • Be profitable during both the SME500 ranking periods
  • Have attained between $10 million and $20 million in Sales/Turnover in the current SME500 Ranking Period
  • Have also attained a profit margin of at least 5% in the current SME500 Ranking Period
  • Have a  credit rating that is at least the same or better as compared to the previous year
• For SME Growth Excellence for Net Profit, recipients must:
  • Have attained at least $500,000 in Net Profit in the previous SME500 Ranking period
  • Have a profit margin of at least 5% in the current SME500 Ranking
  • Have a  credit rating that is at least the same or better as compared to the previous year
• For SME Growth Excellence for Credit Rating, recipients must:
  • Have an improved Credit Rating Grade in current SME500 Ranking, moving from High Yield to Investment Grade will be recognised in this category.
• For SME Growth Excellence for Internationalising SMEs, recipients must:
  • Have qualified for either of the categories of Sales /Turnover, Most Promising Enterprises, Net Profit and Credit Rating recognition, and have shown exceptional performance internationally. Only these prequalified companies will be recognised in this category.

2. Sales/Turnover

One of the most fundamental measures of a company’s financial performance, representing total Sales/Turnover or Gross Operating Income as reported by the company in its financial statements. The Sales/Turnover figures for individual companies include sales to related or holding companies.  The revenue from banks and other financial institutions include interest and non-interest incomes.  Figures for the insurance companies include premium incomes and other investment income. 

3. Net Profit

Net Profit or Profit/Loss after tax includes Profit/Loss of subsidiary and associate companies but excludes the adjustment of minority interests.  Figures in parenthesis “( )” indicate losses. 

4. Total Assets

Total Assets include current assets, fixed assets, investments and amounts owed by related or holding companies at its fiscal year-end.  Expenditure carried forward, expenditure deterred, goodwill and identifiable intangibles such as patents, trademarks and mastheads are excluded. 

5. Total Liabilities

Total Liabilities include all current and long term liabilities at a company’s year-end.

6. Shareholders’ Funds

This is the sum of all paid-up capital, share premium, retained earnings, capital reserves and other reserves at a company’s year-end but excludes minority interests.  Currency translation reserves are included as part of the Shareholders’ Funds. 

7. Group Consolidated Account

Companies are ranked in terms of consolidated performance, if available.  This includes both the performance of the company and its subsidiaries.  All inter-company transactions are eliminated upon consolidation. 

8. Holding Vs Subsidiary Companies

To ensure that the ranking list is as comprehensive and complete as possible, all individual companies who qualify for this ranking and whose financial statements are available, are ranked.  Subsidiary companies are therefore evaluated and ranked as a separate legal entity from its holding companies. 

9. Annualisation of Figures

Financial information stated is based on a company’s financial year ending within 1 June 2006 to 31 May 2007. For changes in accounting period, annualised Sales/Turnover and Net Profit (After Tax) figures will be taken into consideration.  Shareholders’ equity and assets are not annualised. (refer to examples 1 & 2) 

Below are two examples on the computation : 

Example 1 - Company with reported Sales/Turnover and Net Profit (After Tax) for over 18 months, will be annualised by using the fraction 12/18 :

Example 2 - Company which has changed its accounting period from March to December such that there are two accounting periods in 2006, i.e., year ended 31 March 2006 and period ending 31 December 2006 (9 months), will be ranked on the following basis:

10. Current and Previous

Financial information is presented under two columns, namely, ‘Current’ and ‘Previous’.  Information reflected under ‘Current’ refers to figures for financial year ending between 1 June 2006 and 31 May 2007.  Information reflected under ‘Previous’ refers to the comparative information presented in the financial statements for the year ending between 1 June 2005 and 31 May 2006. 

11. Nationality

‘Nationality’ refers to the place of incorporation of a company’s ultimate holding company. 

12. Business Classification and Industry Averages

The business classification of a company is determined in accordance to its principal activity in which it generates the main bulk of its Sales/Turnover and Net Profit. 

Industry Averages for Peer groups are calculated by averaging out the Sales/Turnover and Net profit figures for all companies listed under a particular business classification. 

13. Percentage (%) Change from Previous

This compares a company’s ‘Current’ against its ‘Previous’ performance in percentage (%) terms.  Percentage change from the previous is not applicable to companies which have experienced a negative to positive growth and vice versa (refer to example 3). 

Example 3 - Company’s ‘Current’ against its ‘Previous’ performance in percentage (%) terms

14. Qualifications in Audited Financial Reports

Companies included in the Sales/Turnover and Net Profit ranking comprise all companies for which their accounts are audited. Companies included in the rankings other than in Sales/Turnover, Sales/Turnover & related, Net Profit, Net Profit and related categories, comprise companies for which there are no qualifications expressed in the Auditors’ Reports. 

15. Internationalising SME Recognition

Companies are selected and awarded based on completed survey forms submitted to DP Information Pte Ltd and their audited Sales/Turnover from overseas market.  Sales/Turnover from overseas refers to the turnover derived from market(s) outside Singapore.

16. Foreign Currency Translation

All figures reported in foreign currencies are converted to Singapore dollars at their respective average exchange rate for the ranking period.  For example, for companies with December 2006 financial year ending, the average exchange rate is computed by adding all the month end exchange rates from January 2006 to December 2006 and then divided by 12 to determine the average exchange rate.