20 Sep 2019 12:52
New Trend Lifestyle Group Plc
("NTLG" or the "Company")
Unaudited Interim results for the six months ended 30 June 2019
New Trend Lifestyle Group (AIM: NTLG), the Singapore-based Feng Shui products and services group, announces its interim results for the six months to 30 June 2019.
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The Directors of the issuer accept responsibility for this announcement. This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation which came into effect on 3 July 2016.
For further information please contact:
New Trend Lifestyle Group Plc +44 (0) 7830 182501 Gregory Collier, Non-Executive Chairman
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SPARK Advisory Partners Limited (NOMAD) | +44 (0) 20 3368 3551 |
Mark Brady/Neil Baldwin
SI Capital Limited (Broker) +44 (0) 1483 413500 | |
Nick Emerson |
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Or visit our Website : www.newtrendlifestylegroup.com |
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Chairman's Statement
Results for the period
We are pleased to report that revenue continued to show improvement against the corresponding period last year at SGD 3,091k (1H-2018: SGD 2,543k). The trading conditions in Singapore remain challenging, however, the Board are hopeful that the improvement in sales that we have seen will continue throughout the remainder of the year.
The total comprehensive loss of for the period was SGD298k (1H-2018: SGD1,061k loss) which is a significant improvement on the prior year period. The Board continues to keep tight control of costs, continuing to make reductions, where possible, on an ongoing basis.
Cash at bank at the period end was lower than at the same date last year at SGD 187k (1H-2018: SGD659k). The Board continue to manage our cash with available resources and continue to seek cost reductions without compromising our ability to develop the business and increase revenue.
On 26 July 2019, the Company issued 50,000,000 new ordinary shares of 0.1p each to Zishange Capital Management Pte Ltd (ZSG) as part of settlement of debt owed to ZSG by New Trend Lifestyle Pte Ltd.
Update on acquisition strategy
The Board have not made any progress with the acquisition strategy as the main focus has been the continued improvement in sales performance. We continue to look for suitable, complementary businesses and will update shareholders with any progress as and when appropriate.
Outlook
The Board are very encouraged by the continued improved performance in the business against the prior year. However, we also continue to adopt a cautious view on the short-term outlook given the economic conditions in our local market. It is difficult to ascertain whether this improvement will continue, however, the Board believe that the Group's results for the current year will show an improvement over the prior year.
Gregory Collier
Chairman
New Trend Lifestyle Group Plc
Consolidated Comprehensive Income Statement
For the period to 30 June 2019
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Notes | Six months to 30 June 2019 Unaudited | Six months to 30 June 2018 Unaudited | Year ended 31 December 2018 Audited |
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| SGD'000 | SGD'000 | SGD'000 |
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Revenue |
| 3,091 | 2,543 | 6,491 |
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Cost of Sales |
| (906) | (730) | (1,545) |
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| ────── | ────── | ────── |
Gross Profit |
| 2,185 | 1,813 | 4,946 |
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| ────── | ────── | ────── |
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Administrative expenses |
| (2,717) | (3,011) | (5,729) |
Other income |
| 298 | 246 | 520 |
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| ────── | ────── | ────── |
Operating Loss | 4 | (234) | (952) | (263) |
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Finance expense |
| (80) | (109) | (97) |
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| ────── | ────── | ────── |
Loss before tax |
| (314) | (1,061) | (360) |
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Income tax charges |
| - | - | - |
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| ────── | ────── | ────── |
Loss for the year |
| (314) | (1,061) | (360) |
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| ═════ | ═════ | ═════ |
Loss from discontinuing operations
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| - | - | (30) |
Other comprehensive income/(loss) for the period
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| - | - | - |
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| ────── | ────── | ────── |
Total comprehensive loss for the period |
| (314) | (1,061) | (390) |
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| ═════ | ═════ | ═════ |
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Attributable to: |
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- Non-controlling Interest |
| (16) | - | - |
- Owners of the parent |
| (298) | (1,061) | (390) |
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| ═════ | ═════ | ═════ |
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Loss per share |
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From continuing operations:- |
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Basic and diluted loss per share | 6 | (0.002) | (0.008) | (0.002) |
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New Trend Lifestyle Group Plc
Consolidated Statement of Financial Position as at 30 June 2019
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Notes | As at 30 June 2019 Unaudited | As at 30 June 2018 Unaudited | As at 31 December 2018 Audited |
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| SGD'000 | SGD'000 | SGD'000 |
Assets |
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Non-current assets |
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Property, plant and equipment |
| 1,166 | 1,254 | 1,280 |
Investment property |
| 1,876 | 1,931 | 1,904 |
Intangible assets |
| - | 11 | - |
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| ────── | ────── | ────── |
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| 3,042 | 3,196 | 3,184 |
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| ────── | ────── | ────── |
Current assets |
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Cash and cash equivalents | 8 | 187 | 659 | 1,216 |
Trade and other receivables |
| 489 | 929 | 428 |
Inventories |
| 713 | 717 | 723 |
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| ────── | ────── | ────── |
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| 1,389 | 2,305 | 2,367 |
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| ────── | ────── | ────── |
Total assets |
| 4,431 | 5,501 | 5,551 |
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| ═════ | ═════ | ═════ |
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Equity and liabilities |
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Capital and reserves |
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Issued capital | 7 | 333 | 243 | 333 |
Share premium |
| 3,033 | 2,221 | 3,033 |
Other reserves |
| 379 | 303 | 295 |
Group reorganisation reserve |
| 2,845 | 2,845 | 2,845 |
Currency translation reserve |
| (61) | (61) | (61) |
Accumulated surplus |
| (7,325) | (7,698) | (7,027) |
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| ────── | ────── | ────── |
Total equity |
| (796) | (2,147) | (582) |
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| ────── | ────── | ────── |
Non-current Liabilities |
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Restoration costs |
| 74 | - | 55 |
Borrowings |
| 2,740 | - | 2,715 |
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| ────── | ────── | ────── |
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| 2,814 | - | 2,770 |
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| ────── | ────── | ────── |
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Current liabilities |
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Trade and other payables |
| 1,895 | 4,889 | 2,427 |
Short term borrowings |
| 513 | 2,759 | 912 |
Restoration costs |
| 5 | - | 24 |
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| ────── | ────── | ────── |
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| 2,413 | 7,648 | 3,363 |
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| ────── | ────── | ────── |
Total equity and liabilities |
| 4,431 | 5,501 | 5,551 |
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| ═════ | ═════ | ═════ |
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New Trend Lifestyle Group Plc
Consolidated Statement of Cash Flows
For the six months to 30 June 2019
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| 6 Months to | 6 Months to | Year to |
| 30 June 2019 | 30 June 2018 | 31 Dec 2018 | |
Notes | Unaudited | Unaudited | Audited | |
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| SGD'000 | SGD'000 | SGD'000 |
Cash flows from operating activities |
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Loss before income tax |
| (314) | (1,061) | (360) |
Adjustments for: |
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Depreciation and amortisation expense |
| 149 | 172 | 310 |
Interest expense |
| 80 | 109 | 97 |
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| ────── | ────── | ────── |
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| (85) | (780) | 47 |
Changes in working capital:- |
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Inventories |
| 10 | (28) | (34) |
Trade and other receivables |
| (62) | (428) | 73 |
Trade and other payables |
| (382) | 1,598 | (1,054) |
Hire Purchase |
| - | - | (176) |
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| ────── | ────── | ────── |
Cash consumed in operations |
| (519) | 362 | (1,144) |
Income tax paid |
| - | - | - |
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| ────── | ────── | ────── |
Net cash consumed in operating activities |
| (519) | 362 | (1,144) |
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| ────── | ────── | ────── |
Cash flows from investing activities |
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Purchase of plant and equipment |
| (7) | (26) | (170) |
Proceeds from disposal of PPE |
| - | - | 25 |
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| ────── | ────── | ────── |
Net cash consumed in investing activities |
| (7) | (26) | (145) |
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| ────── | ────── | ────── |
Cash flows from financing activities |
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Issue of convertible loan notes |
| 728 | - | - |
(Repayment) of bank loans |
| (1,251) | (1,687) | 483 |
Interest paid |
| (80) | (109) | (97) |
Net proceeds from share issue |
| 100 | - | - |
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| ────── | ────── | ────── |
Net cash from/(consumed in) financing activities |
| (503) | (1,796) | 386 |
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| ────── | ────── | ────── |
Net change in cash and cash equivalents |
| (1,029) | (1,460) | (903) |
Cash and cash equivalents at beginning of year |
| 1,216 | 2,119 | 2,119 |
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| ────── | ────── | ────── |
Cash and cash equivalents at end of year |
| 187 | 659 | 1,216 |
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New Trend Lifestyle Group Plc
Consolidated statement of changes in equity
For six months to 30 June 2019
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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 |
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Balance at 1 January 2018 | 243 | 2,221 | (6,637) | 303 | 2,845 | (61) | (1,086) |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Loss for the period | - | - | (1,061) | - | - | - | (1,061) |
Convertible loan notes | - | - | - | - | - | - | - |
Currency translation | - | - | - | - | - | - | - |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Balance at 30 June 2018 | 243 | 2,221 | (7,698) | 303 | 2,845 | (61) | (2,147) |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Profit for the period | - | - | 671 | - | - | - | 671 |
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Convertible Loan note | - | - | - | (8) | - | - | (8) |
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Share issued in the period | 90 | 812 | - | - | - | - | 902 |
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Balance at 31 December 2018 | 333 | 3,033 | (7,027) | 295 | 2,845 | (61) | (582) |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Loss for the period | - | - | (298) | - | - | - | (298) |
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Non-Controlling Interest | - | - | - | 84 | - | - | 84 |
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Balance at 30 June 2019 | 333 | 3,033 | (7,325) | 379 | 2,845 | (61) | (796) |
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New Trend Lifestyle Group Plc
Notes to the Interim Financial Information
1. General Information
New Trend Lifestyle Group Plc ("NTLG" or "Group") 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 ("IFRS") 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 2018.
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
In the current year, the Group, for the first time, has applied IFRS 16 Leases. IFRS 16 introduces new or amended requirements with respect to lease accounting. It introduces significant changes to the lessee accounting by removing the distinction between operating and finance leases and requiring the recognition of a right-of-use asset and a lease liability at the lease commencement for all leases, except for short-term leases and leases of low value assets. In contrast to lessee accounting, the requirements for lessor accounting have remained largely unchanged. The impact of the adoption of IFRS 16 on the Group's consolidated financial statements is described below. The Group has applied IFRS 16 using the Modified retrospective approach.
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 and mainland China.
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.
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| 6 months to 30 June 2019 |
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| Singapore | China and HK |
UK | Total | |
| Unaudited | Unaudited | Unaudited | Unaudited | |
| SGD'000 | SGD'000 | SGD'000 | SGD'000 | |
Income Statement |
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Revenue | 3,091 | - | - | 3,091 | |
Other income | 298 | - | - | 298 | |
Direct and operating costs | (3,557) | - | (130) | (3,687) | |
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Group loss before tax | (168) | - | (130) | (298) | |
Assets and Liabilities |
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Segment Assets | 4,430 | - | 1 | 4,431 | |
Segment Liabilities | (5,111) | - | (116) | (5,227) | |
| (681) | - | (115) | (796) | |
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| 6 months to 30 June 2018 |
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| Singapore | China and HK |
UK | Total | |
| Unaudited | Unaudited | Unaudited | Unaudited | |
| SGD'000 | SGD'000 | SGD'000 | SGD'000 | |
Income Statement |
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Revenue | 2,543 | - | - | 2,543 | |
Other income | 246 | - | - | 246 | |
Direct and operating costs | (3,607) | - | (243) | (3,850) | |
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Group profit/(loss) before tax | (818) | - | (243) | (1,061) | |
Assets and Liabilities |
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Segment Assets | 5,491 | - | 10 | 5,501 | |
Segment Liabilities | (7,331) | - | (317) | (7,648) | |
| (1,840) | - | (307) | (2,147) | |
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| Year to 31 December 2018 |
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| Singapore | China and HK |
UK | Total | |
| Audited | Audited | Audited | Audited | |
| SGD'000 | SGD'000 | SGD'000 | SGD'000 | |
Income Statement |
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Revenue | 6,491 | - | - | 6,491 | |
Other income | 550 | - | - | 550 | |
Direct and operating costs | (7,213) | - | (218) | (7,431) | |
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Group profit/(loss) before tax | (172) | - | (218) | (390) | |
Assets and Liabilities |
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Segment Assets | 5,541 | - | 10 | 5,551 | |
Segment Liabilities | (6,007) | - | (126) | (6,133) | |
| (49) | - | (533) | (582) | |
New Trend Lifestyle Group Plc
Notes to the Interim Financial Information
4. Operating loss for the period is stated after charging
| 6 Months to 30 June 2019 Unaudited | 6 Months to 30 June 2018 Unaudited | Year to 31 December 2018 Audited |
| SGD'000 | SGD'000 | SGD'000 |
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Depreciation | 149 | 172 | 328 |
| ═════ | ═════ | ═════ |
5. Directors' emoluments
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6 Months to 30 June 2019 Unaudited |
6 Months to 30 June 2018 Unaudited |
Year to 31 December 2018 Audited |
| NTLG SGD'000 | Total SGD'000 | NTL SGD'000 |
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Hillary Phang Song Hua | 283 | 283 | 610 |
Ajay Kumar Rajpal | 48 | 44 | 85 |
Gregory Collier | 13 | 14 | 27 |
Leung Chi Chiu | 1 | 12 | 13 |
Leung Bo Ye Nancy | - | - | 18 |
| ═════ | ═════ | ═════ |
6. Loss per share
| 6 Months to 30 June 2019 Unaudited | 6 Months to 30 June 2018 Unaudited | Year to 31 December 2018 Audited |
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Loss per ordinary share - SGD |
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Basic | (0.002) | (0.008) | (0.002) |
Diluted | (0.002) | (0.008) | (0.002) |
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Earnings per share has been calculated on the net basis on the loss after tax of SGD314.000 (31 December 2018 - loss SGD390,000; 30 June 2018 - loss SGD1,061,000) using the weighted average number of ordinary shares in issue of 175,000,000 (31 December 2018 - 175,000,000; 30 June 2018 - 125,000,000)
The weighted average number of ordinary shares in issue if fully diluted is 175,000,000 (31 December 2018 - 175,000,000; 30 June 2018 - 125,000,000).
New Trend Lifestyle Group Plc
Notes to the Interim Financial Information
7. Called up Share Capital
The issued share capital as at 30 June 2019 was 175,000,000 Ordinary Shares of 0.1p each.
8. Cash and cash equivalents
| As at 30 June 2019 Unaudited | As at 30 June 2018 Unaudited | As at 31 December 2018 Audited |
| SGD'000 | SGD'000 | SGD'000 |
Cash and bank balance | 187 | 659 | 1,216 |
Fixed deposits | - | - | - |
| ────── | ────── | ────── |
Cash and bank balances as presented in the statement of financial position |
187 |
659 |
1,216 |
Less: Pledge fixed deposits | - | - | - |
| ────── | ────── | ────── |
Cash and cash equivalents as presented in the statement of cash flow | 187 | 659 |
1,216 |
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9. Events subsequent to 30 June 2019
50,000,000 new ordinary shares of 0.1p each have been issued on 26 July 2019 to Zishange Capital Management Pte Ltd (ZSG) as part of settlement of debt owed to ZSG.
10. The unaudited results for period ended 30 June 2019 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 2018 for NTLG 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 the AIM Rules for Companies, available shortly on the Company's website at www.newtrendlifestylegroup.com.