LONDON (Alliance News) - New Trend Lifestyle Group PLC on Wednesday said a fall in revenue caused a wider loss in the first half as trading conditions in Singapore remained tough but the company is taking steps to improve its performance.
The company offers products and services related to Feng Shui, the Chinese system of thought that involves using spatial arrangement and orientation to improve the flow of energy.
New Trend said overall sales fell in the half-year to the end of June. It said corporate sales in the period showed signs of improvement compared to previous years, but it is still taking action to address the decline in retail sales. The company is reducing and controlling costs to ensure it remains "as lean as possible".
"The trading conditions in Singapore for our existing business are expected to remain challenging for the remainder of the year, and the board will continue with the ongoing process of tight cost control, whilst developing new sales and marketing initiatives to bolster sales," said Chairman Gregory Collier.
New Trend raised GBP300,000 earlier this month through a heavily discounted share placing, and the company, using those funds, is now looking for acquisition opportunities to diversify the business in order to grow revenue and profitability.
"The board have started the process of sourcing new acquisition opportunities in the Asia region, and will keep shareholders updated on developments, and make announcements, as appropriate," said Collier.
The placing shares represented 20% of the enlarged issued share capital and were priced at an almighty discount of 71% to the closing share price on August 30, the day before it was launched. That caused New Trend shares to close down 37% on the day of the placing.
The shares have not traded since August 31 and remain at 2.75 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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