Discovering the concealed gems - The SME Growth Excellence Recognition

On 1 November 2007, a recognition ceremony was held for the “SME Growth Excellence Recognition”, a recognition given to SMEs who have distinguished themselves through outstanding financial growth performance in the last financial year.

The “SME Growth Excellence Recognition” is ranked by DP Information Group, which is also the ranking body for the S1000 and SME 500 awards. While the S1000 and SME 500 awards recognize companies with the highest financial performance, the SME Growth Excellence Recognition award focuses on identifying companies achieving the most promising growth rates.

To qualify for the award, the recipients have to have achieved excellent growth in several areas such as sales/turnover, net profit, credit rating and overseas turnover.

Lippo Technologies Limited, which is ranked number 1 in turnover growth and ranked 4^th in overseas growth, has been relentlessly pursuing customer-centric and overseas expansion strategies. Identified as a specialist provider of process technology to the oils and fats industry, Lippo Technologies Limited has forged strategic alliances with A-STAR to enhance its R&D capabilities, while establishing presence in emerging markets such as China, India, Middle East and South East Asia. To date, Lippo Technologies Limited has worked on more than 130 refining plants globally.

By adopting a similar overseas expansion strategy, Nutek Private Limited has demonstrated remarkable growth in the areas including turnover (Ranked No 6), net profit (Ranked No 5) and proceeds from overseas markets (Ranked No 1). As an OEM of automated production system, Nutek Private Limited has extended its reach out of the local boundary to East Asia, Oceania, Europe and the Americas. During the ranking period, Nutek’s growth for the fiscal year was contributed largely by the inclusion of the performance of its USA’s subsidiary – Nutek America Inc.

The award recipients have shown that turnover and profit growth does not come at the expense of deteriorated capital structure. Rather than relying overly on debt financing, the recipients have posted improvements in their DP Credit Ratings (An in-house Credit Rating system developed by DP Information Group based on the default probability). For example, Global Marine Transportation Pte Ltd reported jumps in both turnover and profit and at the same time it is also ranked number one in the Credit Rating category, with the Probability of default score at a low 0.3.

Overseas expansion offers abundant opportunities for SMEs to instill further growth. However, due diligence is equally essential to ensure minimal risks while undertaking overseas expansion. Before entering a new market, pre-screening of intended local partners, potential suppliers and customers can make a difference. This can be done by performing credit checks or attaining their credit ratings.

In a nutshell, it is heartening to witness the models set by those that have made it to the award while driving towards sustainable growth at home or abroad.