28 Sep 2016 09:07
New Trend Lifestyle Group Plc
("NTLG" or the "Company")
Interim results for the six months ended 30 June 2016
New Trend Lifestyle Group (AIM: NTLG), the Singapore-based Feng Shui products and services group, announces its interim results for the six months ended 30 June 2016.
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, Andy Thacker | +44 (0)1483 413500 |
ChairmanÕs Statement
Summary
Trading, balance sheet and cash flow
Sales in the period were SGD602k lower than the corresponding period last year, at SGD3,316k (1H-2015: SGD3,918k). This was as a result of the continued tough trading conditions in Singapore. The Company continues to develop sales and marketing strategies to address the decline in retail sales, and this has had some effect in the period under review as corporate sales have shown signs of increase from prior periods. Alongside this, cost control measures are being constantly reviewed by the Board to ensure that these remain as lean as possible.
Gross profit margins remained in line with the prior period, at 71.5% (1H-2015: 71.9%).
The Group made a total comprehensive loss in the period of SGD359k (1H-2015: SGD662k loss), although there was a foreign exchange gain of SGD393k in the current period which would otherwise have shown a worsened position.
Cash on hand reduced from the prior year end, to SGD1,766k. The Company continues to manage its cash within its available resources. After the period end, the Company raised £300,000, which will ensure that it has sufficient cash reserves to help implement its new strategy of identifying new acquisitions, which will require the Company to undertake due diligence and incur travelling and other related costs.
Outlook
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.
The Board announced an update to its strategy for the Company in June 2016, and following the placing for cash of 25,000,000 new ordinary shares in September 2016, which raised £300,000, the Board is focussed on identifying suitable acquisition opportunities to diversify the Group and 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.
Gregory Collier
Chairman
New Trend Lifestyle Group Plc
Consolidated Comprehensive Income Statement
for the period to 30 June 2016
|
Notes | Six months to 30 June 2016 Unaudited | Six months to 30 June 2015 Unaudited | Year ended 31 December 2015 Audited |
|
| SGD'000 | SGD'000 | SGD'000 |
|
|
|
|
|
Revenue |
| 3,316 | 3,918 | 7,852 |
|
|
|
|
|
Cost of Sales |
| (946) | (1,102) | (2,237) |
|
| ────── | ────── | ────── |
Gross Profit |
| 2,370 | 2,816 | 5,615 |
|
| ────── | ────── | ────── |
|
|
|
|
|
Administrative expenses |
| (3,261) | (3,874) | (7,305) |
Other income |
| 174 | 494 | 728 |
|
| ────── | ────── | ────── |
Operating Loss | 4 | (717) | (564) | (962) |
|
|
|
|
|
Finance expense |
| (35) | (30) | (188) |
|
| ────── | ────── | ────── |
Loss before tax |
| (752) | (594) | (1,150) |
|
|
|
|
|
Income tax |
| - | - | 71 |
|
| ────── | ────── | ────── |
Loss from continuing operations |
| (752) | (594) | (1,079) |
Loss on discontinued operation |
|
- |
- | (407) |
|
| ────── | ────── | ────── |
Loss for the year |
| (752) | (594) | (1,486) |
|
| ═════ | ═════ | ═════ |
Other comprehensive income/(loss) for the period
|
| 393 | (68) | (121) |
|
| ────── | ────── | ────── |
Total comprehensive loss for the Period |
| (359) | (662) | (1,607) |
|
| ═════ | ═════ | ═════ |
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|
|
|
Attributable to: |
|
|
|
|
- Owners of the parent |
| (359) | (662) | (1,607) |
|
| ═════ | ═════ | ═════ |
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Loss per share |
|
|
|
|
|
|
|
|
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From continuing operations:- |
|
|
|
|
|
|
|
|
|
Basic and diluted loss per share | 6 | (0.008) | (0.006) | (0.015) |
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|
|
New Trend Lifestyle Group Plc
Consolidated Statement of Financial Position as at 30 June 2016
|
Notes | As at 30 June 2016 Unaudited | As at 30 June 2015 Unaudited | As at 31 December 2015 Audited |
|
| SGD'000 | SGD'000 | SGD'000 |
Assets |
|
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
Property, plant and equipment |
| 1,449 | 1,695 | 1,534 |
Investment property |
| 2,042 | 2,097 | 2,070 |
|
| ────── | ────── | ────── |
|
| 3,491 | 3,792 | 3,604 |
|
| ────── | ────── | ────── |
Current assets |
|
|
|
|
Cash and cash equivalents | 8 | 1,766 | 2,298 | 2,854 |
Financial assets at fair value through profit or loss |
| - | 16 | - |
Trade and other receivables |
| 1,100 | 1,432 | 767 |
Inventories |
| 775 | 999 | 864 |
|
| ────── | ────── | ────── |
|
| 3,641 | 4,745 | 4,485 |
|
| ────── | ────── | ────── |
Total assets |
| 7,132 | 8,537 | 8,089 |
|
| ═════ | ═════ | ═════ |
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Equity and liabilities |
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Capital and reserves |
|
|
|
|
Issued capital | 7 | 199 | 199 | 199 |
Share premium |
| 1,731 | 1,731 | 1,731 |
Other reserves |
| 360 | 360 | 360 |
Group reorganisation reserve |
| 2,845 | 2,845 | 2,845 |
Currency translation reserve |
| 135 | (205) | (258) |
Accumulated surplus |
| (3,663) | (2,019) | (2,911) |
|
| ────── | ────── | ────── |
Total equity |
| 1,607 | 2,911 | 1,966 |
|
| ────── | ────── | ────── |
Non-current Liabilities |
|
|
|
|
Restoration costs |
| 97 | 153 | 20 |
Borrowings |
| - | - | 3,366 |
Deferred tax liability |
| - | 65 | - |
|
| ────── | ────── | ────── |
|
| 97 | 218 | 3,386 |
|
| ────── | ────── | ────── |
|
|
|
|
|
Current liabilities |
|
|
|
|
Trade and other payables |
| 1,045 | 804 | 1,282 |
Short term borrowings |
| 3,501 | 3,672 | 398 |
Convertible loan notes |
| 882 | 929 | 912 |
Restoration costs |
| - | - | 145 |
Current income tax liabilities |
| - | 3 | - |
|
| ────── | ────── | ────── |
|
| 5,428 | 5,408 | 2,737 |
|
| ────── | ────── | ────── |
Total equity and liabilities |
| 7,132 | 8,537 | 8,089 |
|
| ═════ | ═════ | ═════ |
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|
New Trend Lifestyle Group Plc
Consolidated Statement of Cash Flows
for the six months to 30 June 2016
|
| Six months to | Six months to | Year to |
| 30 June 2016 | 30 June 2015 | 31 Dec 2015 | |
Notes | Unaudited | Unaudited | Audited | |
|
| SGD'000 | SGD'000 | SGD'000 |
Cash flows from operating activities |
|
|
|
|
Loss before income tax |
| (752) | (594) | (1,557) |
Adjustments for: |
|
|
|
|
Depreciation and amortisation expense |
| 249 | 345 | 662 |
Loss on disposal of fixed assets |
| - | - | 22 |
Interest expense |
| 41 | 27 | 199 |
Interest income |
| - | - | (11) |
Impairment loss on trading securities |
| - | - | 15 |
Gain on disposal of plant and equipment |
| - | 13 | - |
Reversal of provision for restoration costs |
| (68) | (36) | (22) |
Foreign exchange differences |
| - | - | (121) |
Movement in reserves |
| (114) | (68) | - |
Loss of written off property, plant and equipment |
| 51 | 37 | - |
Deferred revenue |
| 0 | 14 | - |
|
| ────── | ────── | ────── |
|
| (365) | (262) | (813) |
Changes in working capital:- |
|
|
|
|
Inventories |
| 89 | 156 | 291 |
Trade and other receivables |
| (53) | 120 | 782 |
Trade and other payables |
| (329) | (519) | (152) |
Provision for restoration costs |
| - | - | 39 |
|
| ────── | ────── | ────── |
Cash consumed in operations |
| (659) | (505) | 147 |
Interest received |
| - | - | 11 |
Income tax paid |
| - | - | - |
|
| ────── | ────── | ────── |
Net cash consumed in operating activities |
| (659) | (505) | 158 |
|
| ────── | ────── | ────── |
Cash flows from investing activities |
|
|
|
|
Purchase of plant and equipment |
| (188) | (146) | (227) |
Proceeds from disposal of plant and equipment |
| - | 20 | 106 |
Acquisition of intangible assets |
| - | - | (75) |
|
| ────── | ────── | ────── |
Net cash consumed in investing activities |
| (188) | (126) | (196) |
|
| ────── | ────── | ────── |
Cash flows from financing activities |
|
|
|
|
Proceeds from bank borrowings (net) |
| 34 | - | 200 |
Repayment of bank loans |
| (204) | (112) | (350) |
Proceeds/(repayment) of convertible loan |
| (30) | (192) | (210) |
Interest paid |
| (41) | (27) | (57) |
Proceeds from obligations under finance leases |
| - | - | 70 |
Repayments of obligations under finance leases |
| - | - | (21) |
|
| ────── | ────── | ────── |
Net cash from/(consumed in) financing activities |
| (241) | (331) | (368) |
|
| ────── | ────── | ────── |
Net change in cash and cash equivalents |
| (1,088) | (962) | (406) |
Cash and cash equivalents at beginning of year |
| 2,854 | 3,260 | 3,260 |
|
| ────── | ────── | ────── |
Cash and cash equivalents at end of year |
| 1,766 | 2,298 | 2,854 |
|
| ═════ | ═════ | ═════ |
New Trend Lifestyle Group Plc
Consolidated statement of changes in equity
for six months to 30 June 2016
|
Share capital |
Share premium |
Retained profits | Other reserves |
Group reorganisation reserve |
Currency translation reserve |
Total |
| SGD'000 | SGD'000 | SGD'000 | SGD'000 | SGD'000 | SGD'000 | SGD'000 |
|
|
|
|
|
|
|
|
Balance at 1 January 2015 |
199 |
1,731 |
(1,425) |
360 |
2,845 |
(137) |
3,573 |
|
|
|
|
|
|
|
|
Loss for the period | - | - | (594) | - | - | - | (594) |
Currency translation | - | - | - | - | - | (68) | (68) |
Convertible loan notes | - | - | - | - |
| - | - |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Balance at 30 June 2015 |
199 |
1,731 |
(2,019) |
360 |
2,845 |
(205) |
2,911 |
|
|
|
|
|
|
|
|
Loss for the period | - | - | (892) | - | - | - | (892) |
|
|
|
|
|
|
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Currency translation | - | - | - | - | - | (53) | (53) |
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|
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|
Convertible loan notes | - | - | - | - | - | - | - |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Balance at 31 December 2015 |
199 |
1,731 | (2,911) | 360 | 2,845 | (258) | 1,966 |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Loss for the period | - | - | (752) | - | - | - | (752) |
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|
|
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Currency translation | - | - |
| - | - | 393 | 393 |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Balance at 30 June 2016 | 199 | 1,731 | (3,663) | 360 | 2,845 | 135 | 1,607 |
| ═════ | ═════ | ═════ | ═════ | ═════ | ═════ | ═════ |
New Trend Lifestyle Group Plc
Notes to the Interim Financial Information
1. General Information
New Trend Lifestyle Group Plc (ÒNTLGÓ or ÒGroupÓ) is a public limited company incorporated in England and Wales with company number 8000104 and is quoted on the AIM Market of the London Stock Exchange Plc.
2. Basis of Preparation
This interim report, which incorporates the financial information of the Company, has been prepared using the historical cost convention, on a going concern basis and in accordance with International Financial Reporting Standards (ÒIFRSÓ) as adopted by the European Union, using accounting policies which are consistent with those set out in the financial statements for the year ended 31 December 2015.
Taxes
Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.
Standards and Interpretations adopted with no material effect on financial statements
There are no IFRS or IFRIC interpretations that are effective for the first time in this financial period that would be expected to have a material impact on the Group.
There are no other IFRS or IFRIC interpretations that are not yet effective that would be expected to have material impact on the Group.
New Trend Lifestyle Group Plc
Notes to the Interim Financial Information
3. Segmental Analysis
Segmental reporting
In the opinion of the Directors the Group has one class of business, being the provider of Feng Shui products and services in Singapore. The operations in mainland China and Hong Kong have been discontinued.
The Group's primary reporting format is determined by the geographical segment according to the location of its establishments. There are currently two geographic reporting segments: Singapore and China and Hong Kong.
|
| Six months to 30 June 2016 |
| ||
| Singapore | China and HK |
UK | Total | |
| Unaudited | Unaudited | Unaudited | Unaudited | |
| SGD'000 | SGD'000 | SGD'000 | SGD'000 | |
Income Statement |
|
|
|
| |
Revenue | 3,315 | - | - | 3,315 | |
Other income | 165 | (16) | 26 | 174 | |
Direct and operating costs | (4,001) | (8) | (233) | (4,242) | |
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| |
Group loss before tax | (521) | (24) | (207) | (752) | |
Assets and Liabilities |
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|
|
| |
Segment Assets | 6,791 | 310 | 31 | 7,132 | |
Segment Liabilities | (4,396) | (14) | (1115) | (5,525) | |
| 2,395 | 296 | (1,084) | 1,607 | |
|
| Six months to 30 June 2015 |
| ||
| Singapore | China and HK |
UK | Total | |
| Unaudited | Unaudited | Unaudited | Unaudited | |
| SGD'000 | SGD'000 | SGD'000 | SGD'000 | |
Income Statement |
|
|
|
| |
Revenue | 3,738 | 180 | - | 3,918 | |
Other income | 447 | 57 | (10) | 494 | |
Direct and operating costs | (4,508) | (271) | (227) | (5,006) | |
|
|
|
|
| |
Group profit/(loss) before tax | (323) | (34) | (237) | (594) | |
Assets and Liabilities |
|
|
|
| |
Segment Assets | 8,047 | 439 | 51 | 8,537 | |
Segment Liabilities | (4,460) | (57) | (1109) | (5,626) | |
| 3,587 | 382 | (1,058) | 2,911 | |
|
| Year to 31 December 2015 |
| ||
| Singapore | China and HK |
UK | Total | |
| Audited | Audited | Audited | Audited | |
| SGD'000 | SGD'000 | SGD'000 | SGD'000 | |
Income Statement |
|
|
|
| |
Revenue | 7,852 | 253 | - | 8,105 | |
Other income | 728 | 72 | - | 800 | |
Direct and operating costs | (9,215) | (732) | (515) | (10,462) | |
|
|
|
|
| |
Group profit/(loss) before tax | (635) | (407) | (515) | (1,557) | |
Assets and Liabilities |
|
|
|
| |
Segment Assets | 7,989 | 77 | 23 | 8,089 | |
Segment Liabilities | (4,895) | (29) | (1,199) | (6,123) | |
| 3,094 | 48 | (1,176) | 1,966 | |
New Trend Lifestyle Group Plc
Notes to the Interim Financial Information
4. Operating loss for the period is stated after charging
| Six months to 30 June 2016 Unaudited | Six months to 30 June 2015 Unaudited | Year to 31 December 2015 Audited |
| SGD'000 | SGD'000 | SGD'000 |
|
|
|
|
Depreciation | 249 | 345 | 651 |
| ═════ | ═════ | ═════ |
5. DirectorsÕ emoluments
|
Six months to 30 June 2016 Unaudited |
Six months to 30 June 2015 Unaudited |
Year to 31 December 2015 Audited |
| NTLG SGD'000 | Total SGD'000 | NTL SGD'000 |
|
|
|
|
Robert Goddard | 36 | 37 | 76 |
Hillary Phang Song Hua | 336 | 332 | 593 |
Lawrence Chung | - | 31 | - |
Ajay Kumar Rajpal | 64 | 75 | 144 |
Matthew Pau | - | 9 | 9 |
| ═════ | ═════ | ═════ |
6. Loss per share
| Six months to 30 June 2016 Unaudited | Six months to 30 June 2015 Unaudited | Year to 31 December 2015 Audited |
|
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Loss per ordinary share Ð SGD |
|
|
|
Basic | (0.008) | (0.006) | (0.015) |
Diluted | (0.008) | (0.006) | (0.015) |
| ═════ | ═════ | ═════ |
Earnings per share has been calculated on the net basis on the loss after tax of SGD752,000 (31 December 2015 Ð loss SGD1,079,000; 30 June 2015 - loss SGD594,000) using the weighted average number of ordinary shares in issue of 100,000,000 (fully diluted Ð 103,600,000) (31 December 2015 Ð 103,600,000; 30 June 2015 Ð 103,600,000).
New Trend Lifestyle Group Plc
Notes to the Interim Financial Information
7. Called up Share Capital
The issued share capital as at 30 June 2016 was 100,000,000 Ordinary Shares of 0.1p each.
8. Cash and cash equivalents
| As at 30 June 2016 Unaudited | As at 30 June 2015 Unaudited | As at 31 December 2015 Audited |
| SGD'000 | SGD'000 | SGD'000 |
Cash and bank balance | 1,766 | 1,197 | 2,354 |
Fixed deposits | - | 1,101 | 500 |
| ────── | ────── | ────── |
Cash and bank balances as presented in the statement of financial position |
1,766 |
3,361 |
2,854 |
Less: Pledge fixed deposits | - | (1,101) | (500) |
| ────── | ────── | ────── |
Cash and cash equivalents as presented in the statement of cash flow | 1,766 | 2,298 |
2,354 |
| ═════ | ═════ | ═════ |
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9. Events subsequent to 30 June 2016
On 7 September 2016 the Company issued and allotted 25,000,000 ordinary shares of 0.1 pence each at a price of 1.2 pence per share in the capital of the Company in a share placing to new and existing shareholders.
10. The unaudited results for six months ended 30 June 2016 do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the year ended 31 December 2015 for NTLG are extracted from the audited financial statements which contained an unqualified audit report and did not contain statements under Sections 498 to 502 of the Companies Act 2006.
11. This interim financial statement will be, in accordance with Rule 26 of the AIM Rules for Companies, available shortly on the Company's website at www.newtrendlifestylegroup.com.