30 Sep 2015 07:00
New Trend Lifestyle Group Plc
("NTLG" or the "Company")
Interim results for the 6 months ended 30 June 2015
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 2015.
At present, the majority of NTLGs business is transacted in Singapore Dollars (S$) and therefore Group figures are presented in that currency (S$2.12 to £1.00 on 30th June 2015).
Highlights
Financial
á 15.2% decrease in overall Company sales revenue to S$3,918k (H1 2014: S$ S$4,623k)
á Business development costs in China reduced and costs in Singapore under constant review
á Loss before tax of S$594k (H1 2014: S$ 863k loss)
á Loss per share of S$0.006 (H1 2014: S$0.009 loss)
á Net cash outflow from operating activities of S$ 505k (H1 2014: outflow S$1,517k)
Operational
á Change in strategy with respect to China, resulting in the cessation of retail operations, and ongoing management of current business development projects moved to Singapore
á Continued cost control to maintain the cost base in Singapore in line with current sales levels so that overall profitability is restored
Robert Goddard, Chairman of NTLG, commented:
The Company continues to be faced with very difficult trading conditions in Singapore and, despite the almost complete curtailment of further investment in China, NTLG continues to operate at an overall loss. A rationalisation programme, especially of overheads, was announced earlier in the year and is now well in place and designed to restore profitability.
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The Directors of the issuer accept responsibility for this announcement.
For further information please contact:
New Trend Lifestyle Group Plc Robert Goddard Ajay Rajpal Tel: +65 6533 5082 | |
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Zeus Capital Limited | |
(Nominated Adviser and Brokers) |
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Ross Andrews |
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Andrew Jones |
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Tel: +44 1618 311 512 |
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Chairman's Statement
Change of strategy
At the beginning of April this year, the board decided to cease all retail operations in China. This was as a result of slower than expected progress with the China business development projects, combined with the slowdown in the Singapore retail market. In parallel with this decision, a programme to reduce costs in Singapore was implemented with the objective of breaking even at the trading level on a running basis by the end of this calendar year.
The financial results for the period reflect this change in strategy, and also reflect the continued poor trading conditions brought about by the measures adopted by the Singapore Government to cool the local economy. These have resulted in a marked slowdown in the housing market and therefore also to the demand from householders for the feng shui products and services traditionally associated with moving home. At the same time, rents for retail properties have continued to rise strongly.
Trading, balance sheet and cash flow
As a result of the decisions summarised above, losses in China were reduced to S$34k for the period compared with the loss of S$280k in the first half of last year.
Trading conditions in Singapore have remained very difficult, with sales there down by 15.2%, or S$668k, to S$3,738k (1H2014: S$4,405k). Despite the resulting reduction in gross profit from the reduction in sales, an aggressive reduction (S$501k) in operating expenses, coupled with an improvement of S$200k in other income resulted in a modestly-reduced loss before tax from the trading operations in Singapore to a loss S$323k (1H2014: loss of S$356k).
At S$237k, UK costs (essentially compliance costs) were S$10k higher (mainly as a result of travel costs) than the first half of 2014. This containment of costs was assisted by a 10% cut in directors rates of remuneration.
At group level, the combined effect of these changes was to reduce the loss before tax to S$594k, compared with a loss of S$863k in the first half of 2014. Other income and expenses netted out to S$68k for the period so that the total comprehensive loss was S$662k (1H2014: loss of S$863k).
The Company repaid some convertible loan notes and other facilities in the period, and this, together with the cash outflow from operating activities, resulted in a net cash outflow in the period of S$962k.
Outlook
The Board continues to work towards returning the Company to profitability by the end of 2015. The retrenchment to Singapore, together with the overall reduction and ongoing review of overheads, should help to achieve this goal.
The Board are also reviewing other strategies for the Company, and will update shareholders as and when appropriate.
Robert Goddard
Chairman
Consolidated Comprehensive Income Statement
For the period to 30 June 2015
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Notes | As at 30 June 2015 Unaudited | As at to 30 June 2014 Unaudited | As at 31 December 2014 Audited |
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| SGD'000 | SGD'000 | SGD'000 |
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Revenue |
| 3,918 | 4,623 | 9,228 |
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Cost of Sales |
| (1,102) | (1,266) | (2,513) |
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| ────── | ────── | ────── |
Gross Profit |
| 2,816 | 3,357 | 6,715 |
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| ────── | ────── | ────── |
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Administrative expenses |
| (3,874) | (4,420) | (8,669) |
Other income |
| 494 | 232 | 626 |
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| ────── | ────── | ────── |
Operating Loss | 4 | (564) | (831) | (1,328) |
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Finance expense |
| (30) | (32) | (156) |
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| ────── | ────── | ────── |
Loss before tax |
| (594) | (863) | (1,484) |
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Income tax charges |
| - | - | (64) |
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| ────── | ────── | ────── |
Loss for the period |
| (594) | (863) | (1,548) |
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Other comprehensive income/(loss) for the period |
| (68) | - | (77) |
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| ────── | ────── | ────── |
Total comprehensive loss for the period |
| (662) | (863) | (1,625) |
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| ═════ | ═════ | ═════ |
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Attributable to: |
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- Owners of the parent |
| (662) | (863) | (1,625) |
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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 | (0.006) | (0.009) | (0.02) |
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Consolidated Statement of Financial Position as at 30 June 2015
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Notes | As at 30 June 2015 Unaudited | As at 30 June 2014 Unaudited | As at 31 December 2014 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 |
| 1,695 | 2,052 | 1,967 |
Investment property |
| 2,097 | 2,153 | 2,125 |
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| ────── | ────── | ────── |
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| 3,792 | 4,205 | 4,092 |
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| ────── | ────── | ────── |
Current assets |
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Cash and cash equivalents | 8 | 2,298 | 1,940 | 3,260 |
Financial assets at fair value through profit or loss |
| 16 | 98 | 15 |
Trade and other receivables |
| 1,432 | 1,695 | 1,549 |
Inventories |
| 999 | 1,303 | 1,155 |
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| ────── | ────── | ────── |
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| 4,745 | 5,036 | 5,979 |
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| ────── | ────── | ────── |
Total assets |
| 8,537 | 9,241 | 10,071 |
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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 | 199 | 199 | 199 |
Share premium |
| 1,731 | 1,731 | 1,731 |
Other reserves |
| 360 | 336 | 360 |
Group reorganisation reserve |
| 2,845 | 2,845 | 2,845 |
Currency translation reserve |
| (205) | (33) | (137) |
Accumulated surplus |
| (2,019) | (740) | (1,425) |
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| ────── | ────── | ────── |
Total equity |
| 2,911 | 4,338 | 3,573 |
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| ────── | ────── | ────── |
Non-current Liabilities |
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Restoration costs |
| 153 | 180 | 172 |
Borrowings |
| - | - | 3,501 |
Deferred tax liability |
| 65 | - | 65 |
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| ────── | ────── | ────── |
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| 218 | 180 | 3,738 |
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| ────── | ────── | ────── |
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Current liabilities |
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Trade and other payables |
| 804 | 1,161 | 1,253 |
Short term borrowings |
| 3,672 | 2,417 | 364 |
Convertible loan note |
| 929 | 1,145 | 1,122 |
Restoration costs |
| - | - | 15 |
Current income tax liabilities |
| 3 | - | 6 |
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| ────── | ────── | ────── |
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| 5,408 | 4,723 | 2,760 |
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| ────── | ────── | ────── |
Total equity and liabilities |
| 8,537 | 9,241 | 10,071 |
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Consolidated Statement of Cash Flows
For the six months to 30 June 2015
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| 6 Months to | 6 Months to | Year to |
| 30 June 2015 | 30 June 2014 | 31 Dec 2014 | |
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 |
| (594) | (863) | (1,484) |
Adjustments for: |
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Depreciation and amortisation expense |
| 345 | 329 | 689 |
Interest expense |
| 27 | 26 | 93 |
Gain on disposal of plant and equipment |
| 13 | - | - |
Reversal of provision for restoration costs |
| (36) | (10) | (2) |
Movement in reserves |
| (68) | 29 | - |
Loss of written off property, plant and equipment |
| 37 | - | - |
Deferred revenue |
| 14 | - | - |
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| ────── | ────── | ────── |
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| (262) | (489) | (704) |
Changes in working capital:- |
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Inventories |
| 156 | (166) | (17) |
Trade and other receivables |
| 120 | (598) | (453) |
Trade and other payables |
| (517) | (243) | (49) |
Provision for restoration costs |
| - | - | 31 |
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| ────── | ────── | ────── |
Cash consumed in operations |
| (505) | (1,496) | (1,192) |
Income tax paid |
| - | (21) | 15 |
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| ────── | ────── | ────── |
Net cash consumed in operating activities |
| (505) | (1,517) | (1,177) |
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| ────── | ────── | ────── |
Cash flows from investing activities |
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Purchase of plant and equipment |
| (146) | (118) | (366) |
Proceeds from disposal of plant and equipment |
| 20 | - | - |
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| ────── | ────── | ────── |
Net cash consumed in investing activities |
| (126) | (118) | (366) |
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| ────── | ────── | ────── |
Cash flows from financing activities |
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Proceeds from bank borrowings (net) |
| - | 500 | 2,500 |
Repayment of bank loans |
| (112) | (170) | (759) |
Proceeds/(repayment) of convertible loan |
| (192) | 1,110 | 1,110 |
Interest paid |
| (27) | (26) | (93) |
Placement of fixed deposit |
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| - | - |
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| ────── | ────── | ────── |
Net cash from/(consumed in) financing activities |
| (331) | 1,414 | 2,758 |
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| ────── | ────── | ────── |
Net change in cash and cash equivalents |
| (962) | (221) | 1,215 |
Effects of changes in exchange rates |
| - | - | 87 |
Cash and cash equivalents at beginning of year |
| 3,260 | 1,958 | 1,958 |
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| ────── | ────── | ────── |
Cash and cash equivalents at end of year |
| 2,298 | 1,737 | 3,260 |
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New Trend Lifestyle Group Plc
Consolidated statement of changes in equity
For six months to 30 June 2015
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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 as at 1 January 2013 | 199 | 1,731 | 1,247 | 154 | 2,845 | (41) | 6,135 |
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Profit after tax | - | - | 383 | - | - | - | 383 |
Currency translation reserve | - | - | - | - | - | 4 | 4 |
Group reorganisation | - | - | - | - | - | - | - |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Balance as at 30 June 2013 |
199 |
1,731 |
1,630 |
154 |
2,845 |
(37) |
6,522 |
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Share based payment | - | - | - | 8 | - | - | 8 |
Loss for the period | - | - | (1,507) | - | - | - | (1,507) |
Currently translation Reserve | - | - | - | - | - | (23) | (23) |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Balance at 31 December 2013 |
199 |
1,731 |
123 |
162 |
2,845 |
(60) |
5,000 |
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Loss for the period | - | - | (863) | - | - | - | (863) |
Currency translation | - | - | - | - | - | 27 | 27 |
Convertible loan notes | - | - | - | 174 |
| - | 174 |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Balance at 30 June 2014 |
199 |
1,731 |
(740) |
336 |
2,845 |
(33) |
4,338 |
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Loss for the period | - | - | (685) | - | - | - | (685) |
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Currency translation | - | - | - | - | - | (104) | (104) |
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Convertible loan notes | - | - | - | 24 | - | - | 24 |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Balance at 31 December 2014 |
199 |
1,731 | (1,425) | 360 | 2,845 | (137) | 3,573 |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Loss for the period | - | - | (594) | - | - | - | (594) |
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Currency translation | - | - |
| - | - | (68) | (68) |
| ────── | ────── | ────── | ────── | ────── | ────── | ────── |
Balance at 30 June 2015 | 199 | 1,731 | (2,019) | 360 | 2,845 | (205) | 2,911 |
| ═════ | ═════ | ═════ | ═════ | ═════ | ═════ | ═════ |
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 2014.
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.
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 2015 |
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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 | 3,738 | 180 | - | 3,918 | |
Other income | 448 | 57 | (10) | 494 | |
Direct and operating costs | (4,508) | (271) | (227) | (5,006) | |
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Group loss before tax | (323) | (34) | (237) | (594) | |
Assets and Liabilities |
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Segment Assets | 8,047 | 439 | 51 | 8,537 | |
Segment Liabilities | (4,460) | (57) | (1109) | (5,626) | |
| 3,587 | 382 | (1,058) | 2,911 | |
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| 6 months to 30 June 2014 |
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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 | 4,405 | 218 | - | 4,623 | |
Other income | 248 | (13) | (3) | 232 | |
Direct and operating costs | (5,009) | (485) | (224) | (5,718) | |
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Group profit/(loss) before tax | (356) | (280) | (227) | (863) | |
Assets and Liabilities |
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Segment Assets | 8,154 | 739 | 348 | 9,241 | |
Segment Liabilities | (3,472) | (146) | (1,285) | (4,903) | |
| 4,682 | 593 | (937) | 4,338 | |
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| Year to 31 December 2014 |
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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 | 8,773 | 455 | - | 9,228 | |
Other income | 553 | 31 | - | 584 | |
Direct and operating costs | (9,721) | (976) | (599) | (11,296) | |
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Group profit/(loss) before tax | (395) | (490) | (599) | (1,484) | |
Assets and Liabilities |
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Segment Assets | 9,396 | 652 | 25 | 10,073 | |
Segment Liabilities | (4,969) | (245) | (1,285) | (6,499) | |
| 4,427 | 407 | (1,260) | 3,574 | |
4. Operating loss for the period is stated after charging
| 6 Months to 30 June 2015 Unaudited | 6 Months to 30 June 2014 Unaudited | Year to 31 December 2014 Audited |
| SGD'000 | SGD'000 | SGD'000 |
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Depreciation | 345 | 329 | 689 |
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5. Directors emoluments
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6 Months to 30 June 2015 Unaudited |
6 Months to 30 June 2014 Unaudited |
Year to 31 December 2014 Audited |
| NTLG SGD'000 | Total SGD'000 | NTL SGD'000 |
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Robert Goddard | 37 | 42 | 82 |
Hillary Phang Song Hua | 286 | 312 | 698 |
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James Tan | - | 5 | 5 |
Ajay Kumar Rajpal | 75 | 32 | 104 |
Matthew Pau | 9 | 32 | 62 |
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6. Loss per share
| 6 Months to 30 June 2015 Unaudited | 6 Months to 30 June 2014 Unaudited | Year to 31 December 2014 Audited |
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Loss per ordinary share Ð SGD |
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Basic | (0.006) | (0.009) | (0.02) |
Diluted | (0.006) | (0.009) | (0.02) |
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Earnings per share has been calculated on the net basis on the loss after tax of SGD594,000 (31 December 2014 Ð loss SGD1,548,000; 30 June 2014 - loss SGD863,000) using the weighted average number of ordinary shares in issue of 100,000,000 (fully diluted 100,600,000) (31 December 2014 100,000,000; 30 June 2014 100,000,000).
7. Called up Share Capital
The issued share capital as at 30 June 2015 was 100,000,000 Ordinary Shares of 0.1p each.
8. Cash and cash equivalents
| As at 30 June 2015 Unaudited | As at 30 June 2014 Unaudited | As at 31 December 2014 Audited |
| SGD'000 | SGD'000 | SGD'000 |
Cash and bank balance | 1,197 | 1,737 | 3,260 |
Fixed deposits | 1,101 | 203 | 101 |
| ────── | ────── | ────── |
Cash and bank balances as presented in the statement of financial position | 3,361 |
1,940 |
3,361 |
Less: Pledge fixed deposits | (1,101) | (203) | (101) |
| ────── | ────── | ────── |
Cash and cash equivalents as presented in the statement of cash flow | 2,298 |
1,737 |
3,260 |
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9. The unaudited results for period ended 30 June 2015 do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The comparative figures for the period ended 31 December 2014 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.
10. 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.