29.2.2008: Meldung: Darco Water Technologies Ltd.: Zahlen 2007 – Ausblick 2008

Darco Water Expects FY2008 Revenue to Cross S$100 Million

• Revenue in FY2007 rose by 27% to S$88 million largely contributed
by Taiwan and Malaysia market
• Net profit in FY2007 dipped due to one-time provision of
approximately S$4.6 million
• Net cash from operating activities improved to S$6.7 million
• Board recommended first and final dividend of Sing 0.5 cent per
share
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Singapore, 28 February 2008 – SGX Catalist-listed Darco Water
Technologies Limited (“Darco Water” or the “Company” or the “Group”)
expects revenue for FY2008 to cross S$100million from record contract wins.
For the financial year ended 31 December 2007 (“FY2007”), Darco saw a
respectable revenue growth of 27% to S$88 million. The Engineering
Environmental Systems (“EE systems”) business segment played the largest role
in contributing 82% of total revenue on the back of a 30.6% increase. The
revenue growth was largely contributed by Taiwan market followed by Malaysia
market.

Net profit in FY2007 dropped by 95% to S$0.12 million owing to a one-time nonrecurring
provision relating to sub-contracting works arising from Taiwan-based
company, Hsin II. The company did however purchase an export credit insurance
from ECICS for this project. Barring the bad debts, net profit would otherwise
register higher growth from last year.

Despite the one-time provision, it had little or no negative impact on the cash flow
at all; on the contrary, operating cash flow in FY2007 improved to $6.7 million, a
turnaround from a negative operating cash flow in the previous year due to good
working capital management.

In this respect, the Board has recommended a first and final dividend of Sing 0.5
cent per ordinary share.

Outlook for FY2008
Darco is poised for further revenue growth in FY2008. The company has recently
added an environmental engineering project in Taiwan valued at about S$6.1
million for delivery in FY2008. This brings the collective projects orders to be
delivered in FY2008 to S$107 million.
The Group signed an MOU with Qatar government in September 2007 for the
development of water resource centers. The joint business venture (JV) is
expected to be incorporated within the next few months and could further
improve revenue for FY2008.
Furthermore, given the recent election success by the pro-Mainland China
opposition party in Taiwan, business outlook remains promising for the
company’s largest subsidiaries there to strengthen its presence in the growth
market on the back of improved political stability and diplomatic relationships
between Taiwan and Mainland China.
Barring any unforeseen circumstances, the Group is staged to report all-round
improvement in FY2008.

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About Darco Water Technologies Limited
Listed on SGX Sesdaq in July 2002, Darco is a provider of integrated engineering and
knowledge-based water treatment and environmental engineering solutions. It was established in
1999 to design, fabricate, assemble, install, commission and service engineered water systems
for industrial use in Singapore and Malaysia. Darco has since expanded its technical capabilities
and developed systems and services based on membrane, ion exchange, thermal and vacuum
technologies. Within a span of about five years, Darco has formulated over 300 engineered water
and environmental systems solutions.
The Group, which has operations in Singapore, Malaysia, the PRC, Taiwan, Philippines and
Indonesia, serves companies across diverse industries – electronics, semiconductor, power
generation, chemicals, petrochemicals, food and beverage and pharmaceuticals.
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Issued for and on behalf of Darco Water Technologies Ltd.
By Financial PR Pte Ltd
For more information please contact:
Mark LEE, [email protected]
Kamal Samuel, [email protected]
Tel: (65) 6438 2990 Fax: (65) 6438 0064