Record sales and profits last year, backed by low short-term debt and strong credit standings, mean firms are in good shape to tackle the challenges ahead, said DP Information Group managing director Chen Yew Nah yesterday.

She was speaking at the announcement of the new Singapore 1000 (S1000) and small- and medium-sized enterprise (SME) 500 rankings, which underlined the growth of businesses amid trying times.

More than 8,000 locally incorporated firms - large and small - were assessed according to sales, net profit and return on equity. The period from June 2007 to May last year was examined by DP Info and awards partner Ernst & Young. They found that SME 500 companies recorded a 6.7 per cent rise in sales to $14.9 billion last year. But the bumper results came from S1000 firms - the big guns in business - with sales up 21.6 per cent, from $1.3 trillion to $1.6 trillion.

'To understand the growth achieved by our companies...consider the following: It was only in 2006 that the S1000 companies first broke through the $1 trillion mark sales,' said Ms Chen.

Profits were also up. Total earnings at S1000 companies jumped 57.1 per cent to $131.2 billion, while those at SME 500 firms rose 43.8 per cent to $957 million.

Top S1000 firms in terms of net profit within their respective industries include SingTel Mobile, Singapore Airlines, DBS Group Holdings and global brands like Glaxo Wellcome Manufacturing, LVMH Fashion and Seagate Singapore.

The SME 500 rankings also showed that the property boom in 2007 and early 2008 contributed strongly to profits, with three out of the five top performers coming from the real estate sector. SMEs ranked high in sales also reflected industries thriving at the time, such as manufacturing, services and communications.

Going international emerged as a key theme among top firms. 'The vast majority of these companies...generated revenue outside Singapore,' noted Mrs Tan Li Lin, director of customer services group at International Enterprise (IE) Singapore. Between 2006 and last year, IE Singapore helped 70 per cent more firms in venturing overseas.

This year's rankings considered other indicators such as debt and cash positions and found most firms were in a sound position. 'On average, S1000 companies are holding $147.2 million in cash compared with $65.6 million in 2002. SME500 companies are holding an average of $1.9 million cash compared with $1.3 million in 2002,' said Ms Chen.

Bosses at companies like Nam Leong, a supplier of carbon steel pipes and an SME 500 winner, are under no illusions about future difficulties but remain optimistic.

'We're heading into a very challenging environment but thankfully our exposure is in the construction and shipping sectors, which are still doing okay,' said Nam Leong executive director Colin Tan.

Spring Singapore said the awards are a good platform to celebrate the success of SMEs and highlight their broader contributions to Singapore. 'These SMEs not only contribute to economic growth and jobs, but they also serve as role models for other SMEs, aspiring entrepreneurs and start-ups,' said Mr Lam Kong Hong, Spring's director of enterprise services.

Minister of State for Trade and Industry Lee Yi Shyan will present the awards at the Ritz-Carlton Millenia tonight.

franchan@sph.com.sg