28 Jun 2018 07:00
For immediate release
Final results
28 June 2018
Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).
NEW TREND LIFESTYLE GROUP PLC
("New Trend" or "the Group" or "the Company")
Final Results for the year ended 31 December 2017
New Trend Lifestyle Group plc (AIM: NTLG), the Singapore-based Feng Shui products and services group, today announces its audited final results for the year ended 31 December 2017.
CHAIRMAN'S & CEO'S STATEMENT, INCLUDING FINANCIAL REVIEW
Background and summary of trading performance
The results for the year have been below the prior year, as expected. The trading conditions in Singapore have remained tough, and this has continued to negatively impact our business during the period under review.
Following the decision to cease all operations in China in 2015, the Group has now disposed of its now dormant Hong Kong subsidiary, New Trend Lifestyle (HK) Limited.
Trading
Sales in the year were SGD4,898k (2016: SGD5,512k), a decline of 11.1%. The Group loss before tax from continuing operations was SGD1,559k (2016: SGD1,821k), mainly as a result of the decline in sales, but this loss was mitigated to a degree by the cost reductions achieved by the Board during the year.
Costs in the UK were SGD378k (2016: SGD370k).
Balance sheet
Net inventories remained in line with the prior year at SGD689k (2016: SGD683k).
Cash flow
Cash in hand at the year end was SGD2,119k (2016: SGD2,390k), and the Group continues to manage its cash within its available resources.
Current trading and outlook
Revenues in the first quarter of 2018 have shown significant improvement compared to 2017, at SGD1,805k (2017Q1: SGD1,291k). This has been as a result of improved service revenue, as the sales and marketing initiatives developed and implemented have started to have a positive impact. The trading conditions in Singapore have started to show signs of improvement, although it is too early to assess the anticipated effect on the Group yet.
Over the last 12 months, in line with our stated strategy, the Board has evaluated several potential acquisition targets, however, to date, none of these have been suitable for the company to take forward. The Directors are escalating their efforts on sourcing a suitable acquisition and will update shareholders with progress as and when appropriate.
POST BALANCE SHEET EVENTS
The Group disposed of its interest in Le Queenz Pte. Ltd on 26 June 2018, for SGD1,000.
Gregory Collier Phang Song Hua
CHAIRMAN CHIEF EXECUTIVE
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
| Year ended | Year ended |
Continuing operations |
| 31 December 2017 | 31 December 2016 |
|
| SGD'000 | SGD'000 |
|
|
|
|
Revenue |
| 4,898 | 5,512 |
|
|
|
|
Direct purchases and costs |
| (1,445) | (1,611) |
Personnel expenses |
| (2,749) | (3,120) |
Depreciation and amortisation expenses |
| (272) | (443) |
Finance expenses |
| (259) | (137) |
Advertising and promotional expenses |
| (126) | (167) |
Bank charges |
| (145) | (166) |
Operating lease expenses |
| (1,241) | (1,354) |
Other operating expenses |
| (838) | (991) |
Loss on Disposal |
| (249) |
|
Other income |
| 867 | 656 |
Loss before tax |
| (1,559) | (1,821) |
Income tax (charges) / credits |
| - | (2) |
Loss from continuing operations |
| (1,559) | (1,823) |
Loss from discontinued operations |
| - | (344) |
Loss for the year |
| (1,559) | (2,167) |
Other comprehensive income: |
|
|
|
Exchange loss arising on translation of foreign operations |
| - | (1) |
Total comprehensive loss for the year |
| (1,559) | (2,168) |
Attributable to: |
|
|
|
- Owners of the parent |
| (1,559) | (2,168) |
|
|
|
|
Basic and diluted loss per share |
| SGD | SGD |
From continuing operations |
| (0.01) | (0.02) |
From discontinued operations |
| (0.00) | (0.00) |
|
| (0.01) | (0.02) |
|
|
|
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| 31 December 2017 | 31 December 2016 | |
| SGD'000 | SGD'000 | |
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
| 1,396 | 1,619 |
Investment property |
| 1,959 | 2,015 |
Intangible Assets |
| 23 | 51 |
|
| 3,378 | 3,685 |
Current assets |
|
|
|
Inventories |
| 689 | 683 |
Trade and other receivables |
| 501 | 346 |
Cash and cash equivalents |
| 2,119 | 2,390 |
|
| 3,309 | 3,419 |
Total assets |
| 6,687 | 7,104 |
|
|
|
|
EQUITY and LIABILITIES |
|
|
|
Capital and reserves attributable to equity shareholders |
|
|
|
Share capital |
| 243 | 243 |
Share premium |
| 2,221 | 2,221 |
Other reserves |
| 303 | 305 |
Group reorganisation reserve |
| 2,845 | 2,845 |
Currency translation reserve |
| (61) | (259) |
Accumulated deficit |
| (6,637) | (5,078) |
Total equity |
| (1,086) | 277 |
|
|
|
|
Non-current liabilities |
|
|
|
Restoration costs |
| 48 | 89 |
Borrowings |
| 2,753 | 3,171 |
|
| 2,801 | 3,260 |
|
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
| 3,570 | 2,205 |
Borrowings |
| 1,357 | 1,354 |
Restoration costs |
| 45 | 8 |
|
| 4,972 | 3,567 |
Total equity and liabilities |
| 6,687 | 7,104 |
CONSOLIDATED STATEMENT OF CASH FLOWS
|
| Year ended 31 December 2017 | Year ended31 December 2016 | |
| SGD'000 | SGD'000 | ||
Cash flows from operating activities |
|
|
| |
Loss before income tax |
| (1,559) | (2,167) | |
Adjustments for: |
|
|
| |
Depreciation and amortisation expense |
| 272 | 443 | |
Fixed assets written off |
| - | 71 | |
Interest expense |
| 259 | 91 | |
Interest income | - | (11) | ||
Impairment loss on trading securities | - | 15 | ||
Reversal of provision for restoration costs |
| - | (68) | |
Foreign exchange differences |
| 196 | 81 | |
|
| (832) | (1,541) | |
Changes in working capital |
|
|
| |
Decrease in inventories |
| (6) | 174 | |
Decrease in receivables |
| (155) | 419 | |
Increase/(decrease) in payables |
| 946 | 846 | |
Deferred revenue |
| - | 23 | |
Cash generated from operations |
| (47) | (79) | |
Income tax paid |
| - | (2) | |
Net cash(outflow)/ inflow from operating activities |
| (47) | (81) | |
|
|
|
| |
Cash flows from investing activities |
|
|
| |
Acquisition of property, plant and equipment |
| (24) | (595) | |
Proceeds from disposal of PPE |
| 59 | - | |
Net cash (outflow) from investing activities |
| 35 | (595) | |
|
|
|
| |
Cash flows from financing activities |
|
|
| |
Proceeds from bank borrowings (net) |
| - | 252 | |
Repayment of bank loans |
| - | (428) | |
Interest paid |
| (259) | (91) | |
Net proceeds from share issue |
| - | 479 | |
Net cash from financing activities |
| (259) | 212 | |
|
|
|
| |
|
|
| ||
Net increase/(decrease) in cash and cash equivalents | (271) | (464) | ||
Cash and cash equivalents at start of year - cash |
| 2,390 | 2,854 | |
Cash and cash equivalents at end of year | 19 | 2,119 | 2,390 | |
|
|
|
| |
Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other short-term highly liquid investments with maturity of three months or less, as adjusted for any bank overdrafts.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Attributable to equity shareholders of the Company | |||||||
| Share capital | Share premium | Accumulated deficit | Other reserves | Group reorganisation reserve | Currency translation reserve | Total | |
|
| SGD'000 | SGD'000 | SGD'000 | SGD'000 | SGD'000 | SGD'000 | SGD'000 |
At 1 January 2016 |
| 199 | 1,731 | (2,911) | 360 | 2,845 | (258) | 1,966 |
Comprehensive income |
|
|
|
|
|
|
|
|
Loss for the period |
| - | - | (2,167) | - | - | - | (2,167) |
Other comprehensive income |
|
|
|
|
|
|
|
|
Currency translation Reserve |
| - | - | - | - | - | (1) | (1) |
Total comprehensive income for the year |
| - | - | (2,167) | - | - | (1) | (2,168) |
Shares issued in the period |
| 44 | 490 | - | - | - | - | 534 |
Convertible loan notes |
| - | - | - | (55) | - | - | (55) |
At 31 December 2016 |
| 243 | 2,221 | (5,078) | 305 | 2,845 | (259) | 277 |
|
|
|
|
|
|
|
|
|
At 1 January 2016 |
| 243 | 2,221 | (5,078) | 305 | 2,845 | (259) | 277 |
Comprehensive income |
|
|
|
|
|
|
|
|
Loss for the period |
| - | - | (1,559) | - | - | - | (1,559) |
Other comprehensive income |
|
|
|
|
|
|
|
|
Currency translation Reserve |
| - | - | - | - | - | 198 | 198 |
Total comprehensive income for the year |
| - | - | (1,559) | - | - | 198 | (1,361) |
Convertible loan notes |
| - | - | - | (2) | - | - | (2) |
At 31 December 2017 |
| 243 | 2,221 | (6,637) | 303 | 2,845 | (61) | (1,086) |
Share capital | Amount subscribed for shares at nominal value. |
Share premium | Amount subscribed for share capital in excess of nominal value. |
Other reserves | Cumulative amounts charged in respect of share based payments for unsettled warrants issued and the equity portion of convertible loans issued. |
Group reorganisation reserve | Effect on equity of the group reorganisation. See Note 2. |
Accumulated surplus | Cumulative surplus of the Group attributable to equity shareholders. |
NOTES:
1. General information
New Trend Lifestyle Group Plc is a company incorporated in England on 21 March 2012 under the Companies Act 2006 but domiciled in Singapore. It was listed on the AIM market on 28 June 2012.
2. Basis of preparation and significant accounting policies
The consolidated financial statements of New Trend Lifestyle Group Plc have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS's as adopted by the EU), IFRS Interpretations Committee and the Companies Act 2006 applicable to companies reporting under IFRS. The consolidated financial statements have been prepared under the historical cost convention, available-for-sale financial assets, and financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3.
3. Notes to the Consolidated Financial Statements
The notes to the consolidated financial statements, which are an integral part of these consolidated financial statements, are contained in the full Report and Accounts for New Trend Lifestyle Group Plc.
4. Availability of the Report and Accounts
A copy of the Company's Report and Accounts for the year ended 31 December 2017 will be posted to shareholders and will be available on the Company's website: www.newtrendlifestylegroup.com.
~END~
For further information, please contact:-
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 |