SEO Version
Chairman’s statement
Dear Shareholders,
O
n behalf of the board of directors, it is
with pleasure that I present to you the
annual report of The Straits Trading
Company Limited (“Straits Trading”) for the
fnancial year ended 31 December 2011.
Though our transformation is far from complete, we
are pleased to report that we have become a stronger
player in our chosen markets, and we are starting
to see the results of initiatives put in place to create
greater shareholder value. As a result, Straits Trading
has emerged stronger and leaner with a sharper focus,
and is better positioned with a robust management
team and an improved set of results.
I am pleased to report that during FY2011, our revenue
grew by 11% to $1.5 billion. The increase was broad-
based across all businesses, with the highest contribution
coming from our Resources division. Signifcantly, our
net proft increased by 62% to $45.6 million. The better
year-on-year results were due to higher profts from
both tin mining and smelting operations in Malaysia,
improved operating performance from the Hospitality
division and fair contributions fromour Property division.
Our earnings per share (EPS) increased from 8.6 cents
in 2010 to 14 cents in 2011. Our net asset value (NAV)
per share also increased from $3.52 to $3.57.
MAIDEN MTN ISSUE
Given the uncertain economic outlook for global fnancial
markets, we decided to strengthen our capital structure
and balance sheet, by launching a Multicurrency Debt
Issuance Programme inOctober 2011. This was followed
by our successful inaugural S$225 million note issue
in November 2011. Our debut on the capital markets
was met with enthusiastic response by investors, as
evidenced by the strong subscription rate at 4.5 times
of the original intended deal size. We are heartened
that investors appreciate the strength and stability of
Straits Trading and the assets we possess.
With our additional capital resources, we are better-
positioned to take advantage of any opportunistic
acquisitions of assets that may arise, as well as undertake
further investments to enhance and upgrade our existing
assets, given the uncertain economic outlook. It will also
enable us to ride through any unexpected turbulence
with adequate funds.
THE STRAITS TRADING COMPANY LIMITED
ANNUAL REPORT
2011
05
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