FRENCKEN GROUP LIMITED
ANNUAL REPORT 2015
13
Operational Initiatives
Our Europe team continues to work on increasing our wallet
share with existing customers, expanding our portfolio
and market share with new customers while continuing
to drive operational efficiency. With our global network of
manufacturing facilities, we continue to leverage this value
proposition to advance our relationships with customers in
Europe. To offer industry leading cleaning capabilities, we
have invested in a new advanced vacuum cleaning facility
which is expected to be ready by the middle of 2016.
Our Asia operations, which have established manufacturing
facilities in Southeast Asia and Wuxi (China), have steadily
improved its wallet share with existing customers from the
analytical and semiconductor segments and also successfully
acquired a new customer from the storage test equipment
sector.
As a testament of our high quality and service standards,
our Asia operations was conferred the “Best Supplier Award”
for two consecutive years in 2014 and 2015 by a leading
semiconductor assembly and packaging equipment player.
To cater for the production of the new module assemblies in
China, we will set up a controlled environment manufacturing
facility in our Wuxi plant.
IMS Division
Business segment review
The IMS Division reported a 4.6% decrease in revenue to
S$165.6 million in FY2015. Revenue from the automotive
segment increased by 5.8% to S$119.6 million, and
contributed to 72.2% of the IMS Division’s revenue in
FY2015. The office automation segment saw sales declining
by 65.2% to S$8.1 million in FY2015 as the Group ceased
sales of mail facilitating products. As such, the revenue
contribution from the office automation segment shrank to
4.9% in FY2015 compared to 13.4% in FY2014.
Despite weaker demand for camera components, sales to
the consumer and industrial electronics segment held steady
at S$22.3 million and made up 13.4% of the IMS Division’s
revenue in FY2015. Tooling sales in FY2015 gained 14.5%
to S$14.2 million in tandem with the volume of projects
under industrialisation.
The IMS Division posted net profit of S$0.9 million for
FY2015 compared to S$2.7 million in FY2014. Excluding
exceptional items of S$4.3 million in FY2015, this division
would have recorded higher net profit of S$5.2 million in
FY2015 against S$2.7 million in FY2014.
Note : FY2012 figures include 3 months (Oct to Dec 2012) of
post acquisition revenue and operating profit of Juken
group of companies.
IMS DIVISION’S PERFORMANCE
(FY2011 - FY2015)
Revenue ($’000)
Operating Profit/(Loss) ($’000)
BUSINESS REVIEW
(CONT’D)
90,454
69,130
170,861
173,519
165,617
2011
2013
2012
2014 2015
2011
2013
2012
2014 2015
13,728
(7,280)
(10,180)
5,092
9,077
