LONDON (Alliance News) - New Trend Lifestyle Group PLC Thursday said its annual pretax loss widened in 2013, as higher impairments and an increase in its operating lease expenses more than offset revenue growth.
In a statement, the Feng Shui specialist said it made a SGD1.0 million pretax loss in 2013, compared with a SGD323,000 pretax loss in 2012. Revenue increased to SGD11.1 million, from SGD10.7 million, as sales in Singapore remained broadly flat at SGD10.6 million, while sales in China rose to SGD467,000 compared with SGD68,000 in 2012.
However, costs increased across a broad range of items, including due to depreciation and amortisation on the acquisition of group headquarters in 2012 and the higher costs of renovating shops in Singapore. Advertising and promotion expenses rose due to "greater promotional effort," including a Feng Shui magazine for China and additional graphic design services.
However, the largest expenses booked were for personnel, which increased to SGD4.6 million, from SGD4.1 million, on extra staff being hired to boost sales, while it booked a SGD951,000 impairment on New Trend Lifestyle's legacy investment in LZYE PLC in Hing Jing. Operating lease expenses increased to SGD1.6 million, from SGD1.3 million.
"The group's performance has remained resilient to the general macro-economic downturn in the Singapore retail market. The group will focus on maintaining a strong retail offering in Singapore, whilst further developing the Chinese market with a franchising model. This will improve traction in this developing but important target market," Chairman Robert Goddard said in a statement.
"Year-to-year comparable sales in Singapore for the year outperformed the sharply diminished general retail market and this is testimony to the quality of the group's offering. Retail market statistics for the early part of 2014 in Singapore suggest a very slight improvement in retail market demand over the full year of 2013," the Chairman said.
"We will continue to refresh and upgrade the Singapore network and expect to roll out a new retail and service concept early in the second half of 2014. Managed by an experienced professional in the field, this will be a beauty parlour chain based on Feng Shui principles. The other initiatives in hand will continue to be progressed," Goddard added.
New Trend Lifestyle shares were Thursday quoted at 7.625 pence, untraded.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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