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RNS

Interim results for the period ended 30 June 2015

Released 07:00 30-Sep-2015

RNS Number : 6290A
New Trend Lifestyle Group plc
30 September 2015
 

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.

 

 

 

 

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

 

 

Zeus Capital Limited

(Nominated Adviser and Brokers)

 

Ross Andrews

 

Andrew Jones

 

Tel: +44 1618 311 512

 

 

 

 

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

          

 

 

 

Notes

As at 30 June 2015 Unaudited

As at to

30 June 2014

Unaudited

As at

31 December 2014

Audited

 

 

SGD'000

SGD'000

SGD'000

 

 

 

 

 

Revenue

 

3,918

4,623

9,228 

 

 

 

 

 

Cost of Sales

 

(1,102)

(1,266)

(2,513)

 

 

──────

──────

──────

Gross Profit

 

2,816

3,357

6,715

 

 

──────

──────

──────

 

 

 

 

 

Administrative expenses

 

(3,874)

(4,420)

(8,669)

Other income

 

494

232

626

 

 

──────

──────

──────

Operating Loss

4

(564)

(831)

(1,328)

 

 

 

 

 

Finance expense

 

(30)

(32)

(156)

 

 

──────

──────

──────

Loss before tax

 

(594)

(863)

(1,484)

 

 

 

 

 

Income tax charges

 

-

-

(64)

 

 

──────

──────

──────

Loss for the period

 

(594)

(863)

(1,548)

 

 

 

 

 

Other comprehensive income/(loss) for the period

 

(68)

-

(77)

 

 

──────

──────

──────

Total comprehensive loss for the

period

 

(662)

(863)

(1,625)

 

 

═════

═════

═════

 

 

 

 

 

Attributable to:

 

 

 

 

-  Owners of the parent

 

(662)

(863)

(1,625)

 

 

═════

═════

═════

 

 

 

 

 

Loss per share

 

 

 

 

 

 

 

 

 

From continuing operations:-

 

 

 

 

 

 

 

 

 

Basic and diluted loss per share

6

(0.006)

(0.009)

(0.02)

 

 

 

 

 

 


 

Consolidated Statement of Financial Position as at 30 June 2015

 

 

 

 

 

Notes

As at

30 June 2015

Unaudited

As at

30 June 2014

Unaudited

 As at

31 December

2014

Audited

 

 

SGD'000

SGD'000

SGD'000

Assets

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

1,695

2,052

1,967

Investment property

 

2,097

2,153

2,125

 

 

──────

──────

──────

 

 

3,792

4,205

4,092

 

 

──────

──────

──────

Current assets

 

 

 

 

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

 

 

──────

──────

──────

 

 

4,745

5,036

5,979

 

 

──────

──────

──────

Total assets

 

8,537

9,241

10,071

 

 

═════

═════

═════

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

 

 

 

Capital and reserves

 

 

 

 

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)

 

 

──────

──────

──────

Total equity

 

2,911

4,338

3,573

 

 

──────

──────

──────

Non-current Liabilities

 

 

 

 

Restoration costs

 

153

180

172

Borrowings

 

-

-

3,501

Deferred tax liability

 

65

-

65

 

 

──────

──────

──────

 

 

218

180

3,738

 

 

──────

──────

──────

 

 

 

 

 

Current liabilities

 

 

 

 

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

 

 

──────

──────

──────

 

 

5,408

4,723

2,760

 

 

──────

──────

──────

Total equity and liabilities

 

8,537

9,241

10,071

 

 

═════

═════

═════

 

 

 

 

 


Consolidated Statement of Cash Flows

 

For the six months to 30 June 2015

 

 

 

6 Months to

6 Months to

 Year to

 

30 June 2015

30 June 2014

31 Dec 2014

Notes

Unaudited

Unaudited

Audited

 

 

SGD'000

SGD'000

SGD'000

Cash flows from operating activities

 

 

 

 

Loss before income tax

 

(594)

(863)

(1,484)

Adjustments for:

 

 

 

 

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

-

-

 

 

──────

──────

──────

 

 

(262)

(489)

(704)

Changes in working capital:-

 

 

 

 

Inventories

 

156

(166)

(17)

Trade and other receivables

 

120

(598)

(453)

Trade and other payables

 

(517)

(243)

(49)

Provision for restoration costs

 

-

-

31

 

 

──────

──────

──────

Cash consumed in operations

 

(505)

(1,496)

(1,192)

Income tax paid

 

-

(21)

15

 

 

──────

──────

──────

Net cash consumed in operating activities

 

(505)

(1,517)

(1,177)

 

 

──────

──────

──────

Cash flows from investing activities

 

 

 

 

Purchase of plant and equipment

 

(146)

(118)

(366)

Proceeds from disposal of plant and equipment

 

20

-

-

 

 

──────

──────

──────

Net cash consumed in investing activities

 

(126)

(118)

(366)

 

 

──────

──────

──────

Cash flows from financing activities

 

 

 

 

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

 

 

-

-

 

 

──────

──────

──────

Net cash from/(consumed in) financing activities

 

(331)

1,414

2,758

 

 

──────

──────

──────

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

 

 

──────

──────

──────

Cash and cash equivalents at end of year

 

2,298

1,737

3,260

 

 

═════

═════

═════

 

 

New Trend Lifestyle Group Plc

                                  

Consolidated statement of changes in equity

 

For six months to 30 June 2015

 

 

 

 

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 as at 1

January 2013

199

1,731

1,247

154

2,845

(41)

6,135

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Loss for the period

-

-

(685)

-

-

-

(685)

 

 

 

 

 

 

 

 

Currency translation

-

-

-

-

-

(104)

(104)

 

 

 

 

 

 

 

 

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)

 

 

 

 

 

 

 

 

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.

 

 

 

6 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

448

57

(10)

494

Direct and operating costs

(4,508)

(271)

(227)

(5,006)

 

 

 

 

 

Group 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

           

 

 

 

6 months to 30 June 2014

 

 

Singapore

China and HK

 

UK

Total

 

Unaudited

Unaudited

Unaudited

Unaudited

 

SGD'000

SGD'000

SGD'000

SGD'000

Income Statement

 

 

 

 

Revenue

4,405

218

-

4,623

Other income

248

(13)

(3)

232

Direct and operating costs

(5,009)

(485)

(224)

(5,718)

 

 

 

 

 

Group profit/(loss) before tax

(356)

(280)

(227)

(863)

Assets and Liabilities

 

 

 

 

Segment Assets

8,154

739

348

9,241

Segment Liabilities

(3,472)

(146)

(1,285)

(4,903)

 

4,682

593

(937)

4,338

           

 

 

 

Year to 31 December 2014

 

 

Singapore

China and HK

 

UK

Total

 

Audited

Audited

Audited

Audited

 

SGD'000

SGD'000

SGD'000

SGD'000

Income Statement

 

 

 

 

Revenue

8,773

455

-

9,228

Other income

553

31

-

584

Direct and operating costs

(9,721)

(976)

(599)

(11,296)

 

 

 

 

 

Group profit/(loss) before tax

(395)

(490)

(599)

(1,484)

Assets and Liabilities

 

 

 

 

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

 

 

 

 

Depreciation

345

329

689

 

═════

═════

═════

     

 

5.   Directors emoluments

 

 

 

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

 

 

 

 

Robert Goddard

37

42

82

Hillary Phang Song Hua

286

312

698

 

 

 

 

James Tan

-

5

5

Ajay Kumar Rajpal

75

32

104

Matthew Pau

9

32

             62

 

═════

═════

═════

6.   Loss per share

 

6 Months to

30 June 2015

Unaudited

6 Months to

30 June 2014

Unaudited

 Year to

31 December 2014

Audited

 

 

 

 

 

 

 

 

Loss per ordinary share Ð SGD

 

 

 

Basic

(0.006)

(0.009)

(0.02)

Diluted

(0.006)

(0.009)

(0.02)

 

═════

═════

═════

 

      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

 

═════

═════

═════

 

 

 

 

 

 

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.

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Interim results for the period ended 30 June 2015 - RNS