SIA Engineering Group reported revenue of SG$443.0 million for the financial year ended March 31, 2021 which was SG$551.1 million (-55.4%) lower than in the previous financial year as low flight activities and widespread grounding of aircraft resulted in a sharp and severe reduction in business volume.
Group expenditure was also lower year-on-year, falling from SG$926.4 million to SG$468.0 million (-49.5%), due to grants from government support schemes and cost-saving measures. Staff costs and subcontract costs fell due to actions taken to match manpower requirements to lower business volume. Government wage support resulted in a further reduction in manpower costs. Non-manpower-related costs fell due to tight control over expenses and deferment of non-critical expenses. As such a reduction in expenditure could not keep pace with the sharp decline in revenue, the Group’s operating performance deteriorated from a profit of SG$67.7 million in the previous financial year to a loss of SG$25.0 million in the financial year ended 31 March 2021.
The adverse impact of COVID-19 on the aerospace industry also resulted in provisions being made for impairment of asset values during the financial year, the most significant being a SG$35.0 million impairment provision made on Base Maintenance unit’s assets and an SG$11.4 million impairment provision on the investment in an engine program. The Group recorded a net loss of SG$11.2 million for the financial year ended March 31, 2021, compared to a profit of SG$193.8 million in the previous year. The decline of the Group’s financial performance was substantially cushioned by grants from government support schemes, most significantly, the Jobs Support Scheme (JSS). Without this support, the Group would have recorded a loss of SG$192.4 million. (US$ = SG$1.34 at time of publication.)
