27 Dec 2017 07:00
Embargoed 07.00a.m.
27 December 2017
The information communicated in this announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
New Trend Lifestyle Group Plc
("NTLG" or the "Company")
Disposal of subsidiary and trading update
New Trend Lifestyle Group plc (AIM: NTLG), the Singapore-based Feng Shui products and services group announces that, it has agreed to sell New Trend Lifestyle (HK) Limited (an intermediate holding company), and its wholly owned subsidiary, New Trend Lifestyle (Shenzen) Limited, (together "NTL Hong Kong") to Mr. Leow Lye Seng for a nominal cash consideration of HKD 1,000 (Hong Kong Dollars)(approximately £100), payable on completion.
NTL Hong Kong was originally set up for the Group's expansion into China. With the decision to withdraw from China and concentrate on its Singapore operations in 2015, NTL Hong Kong has been in run-down mode and is non-trading and effectively dormant. The legal and accounting costs of maintaining this structure now far outweigh the benefits and the Board has decided to sell NTL Hong Kong rather than liquidate it. In the year ended 31 December 2016, NTL Hong Kong had total revenue of HKD 29,801 (approximately £3,000) and made a loss before tax of HKD 65,726 (approximately £6,300). The Group's investment in NTL Hong Kong and amounts owed to the Company by NTL Hong Kong have been fully provided in the Group's last audited accounts to 31 December 2016 .
The disposal of NTL Hong Kong completes the withdrawal of NTLG from China and puts its sole trading focus on its operations in Singapore.
Trading update
As outlined at the time of the Company's interim announcement notified on 29 September 2017, the second half of the year has continued to be very challenging in terms of trading. As a consequence, and as previously announced, the Board expects results for the full year ending 31 December 2017 to be poor. The Company continues to try and manage its cash resources to the best of its ability and continue, wherever possible to save cost, without compromising its ability to develop the business and increase revenue.
The Board continues to look for potential acquisition targets in line with its stated strategy; nothing which the Board has reviewed to date has proved to be suitable. The Board continues to look for opportunities and will make further announcements as appropriate.
END
For further information:-
New Trend Lifestyle Group Plc Gregory Collier, Non-Executive Chairman
| +44 (0) 7830 182501 |
SPARK Advisory Partners Limited (NOMAD) Mark Brady/Neil Baldwin
| +44 (0) 20 3368 3551 |
SI Capital Ltd (Broker) Nick Emerson | +44 (0)1483 413500 |