ANNUAL REPORT

Middle East Development Singapore Ltdannual report 200711FinancialREVIEWDistribution expenses rose by 5% to S$1.6million from S$1.5 million owing to highersales commission paid in People’s Republicof China and Malaysia, rental cost andmarketing related expenses.Administrative expenses went up by 19.10%to S$2.8 million owing to the set-up cost forthe corporate office.Financial ReviewThe result for the financial year underreview is attributable mainly to our existingwaterproofing business as the ProjectManagement business is still awaitingshareholders’ approval.The Group’s revenue for FY07 registereda small 0.85% rise to S$11.81 million. Thisgave rise to a higher gross profit of S$4million while Gross Profit margin edgedup slightly to 33.73%. On segmentalbusiness performance, the Installationbusiness improved in revenue by 3.16% toS$6.83 million but the Manufacturing andSales business saw a 2.16% decline inrevenue to about S$4.98 million.There was a credit of S$0.03 million for FY07compared to a charge of S$0.03 million forFY06. This was largely due to a decrease ininventories written down to a net realizablevalue and an increase in gain on disposal offixed assets.The Group’s loss before tax decreased by50% to S$0.14 million but loss after taxwent up by S$0.13 million to S$0.32 millionfor FY07.The Group’s basic loss per share improvedby 0.02 cents to 0.16 cents. However, netasset value per share improved from 4.46cents to 4.66 cents.Geographically, there was a shift in revenuemix. Revenue in Malaysia soared by 35.14%while revenue from Singapore and People’sRepublic of China declined by 1.95% and15.99% respectively.Other operating income went up fromS$0.025 million to S$0.057 million owing toinsurance claim and legal fee recovery.There was Financial Income of S$0.25million in FY07 and this was due toreduction in provision for doubtful debts,write back of doubtful debt and an increasein fixed deposit interest.The Arabian Crowne