LONDON (Alliance News) - New Trend Lifestyle Group PLC Monday reported higher revenues and a first half profit, following a loss the previous year, boosted by a strong performance from its Singapore operations, and the disposal of a property.
The Singapore-based Feng Shui products and services group said that it is confident in achieving future growth, due to a combination of tightened cost control in both China and Singapore and the roll-out of large franchised outlets in China, which it expects to create new sources of revenue.
It reported a 7.7% increase in revenue to SGD5.6 million from SGD5.2 million a year earlier, and said its gross margin rose to 90.2% in the six months ended June 30.
It said that like-for like product sales held steady at SGD4.1 million.
The group said that while there was an element of growth from its Chinese operations, its Singapore operation accounted for almost 95% of overall sales in the period.
It reported a pretax profit of SGD543,000 for the first half of the year, compared with a pretax loss of SGD785,000 a year earlier, mostly due to the sale of its Sims Avenue property in Singapore. The sale price of SGD3.35 million resulted in a profit on disposal of GBP477,000. It said the proceeds from disposal were used to pay down a loan that had been secured by the Sims Avenue property.
New Trend said its net profit for the period was SGD387,000, including an income tax charge of SGD160,000.
It said that development costs in China more than quadrupled during the period to SGD589,000, from GBP131,000 the prior year, as there was comparatively little activity in China in the first half of 2012.
The company shares were down 9.1% or 0.50 pence Monday afternoon, trading at 5.00 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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