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New Trend Lifestyle (NTLG)

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Thursday 29 June, 2017

New Trend Lifestyle

Final Results for the year ended 31 December 2016

RNS Number : 5059J
New Trend Lifestyle Group plc
29 June 2017
 



For immediate release

Final results

 

29 June 2017

 

 

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 2016

 

 

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 2016.

 

 

CHAIRMAN'S & CEO'S STATEMENT, INCLUDING FINANCIAL REVIEW

 

Background and summary of trading performance

Trading conditions in Singapore remained tough throughout the year, as we expected and highlighted at the time of our interim results in September 2016. The performance in the year was poor, and the Group continued with its sales and marketing initiatives in Singapore to bolster sales, whilst maintaining a tight control on costs.

The Group has been through significant change during the year. In June 2016, several Board changes occurred, with Robert Goddard resigning, and Greg Collier, Bo Yee Nancy Leung and Chi Chiu Leung appointed to the Board. This was accompanied by a change in our Nominated Adviser, and a focus on a new strategy designed to seek acquisitions to restore the Group to overall profitability. In August 2016, the Group successfully raised SGD479,000 (£300,000) net by way of a placing of new ordinary shares to support the new strategy.

The Company refinanced the convertible loan notes that were due for repayment on 31 December 2016. These were novated to New Trend Lifestyle Pte Ltd, and will be repayable on 31 December 2018 subject to certain provisions.

 

Trading

Sales in the year were SGD5,512k (2015: SGD7,852k), a decline of 29.8%. The Group loss before tax from continuing operations was SGD1,821k (2015: SGD1,150k), mainly as a result of the sharp decline in sales, but this loss was mitigated to a degree by the cost reductions achieved by the Board during the year.

The loss attributable to China was reduced to SGD344k (2015: SGD407k).

Costs in the UK were reduced to SGD356k (2015: SGD515k).

 

Balance sheet

Net inventories decreased to SGD683k (2015: SGD864k).

The Company raised SGD479k net in August 2016, to ensure that it had sufficient cash reserves to help implement its strategy of identifying new acquisitions where the Company will be required to undertake due diligence and incur travelling and other related costs.

 

Cash flow

Cash in hand at the year end was SGD2,390k (2015: SGD2,854k), and the Group continues to manage its cash within its available resources. 

 

CURRENT TRADING AND OUTLOOK

In March, we reported that sales in the first two months of this financial year were significantly down on the same period last year, and this trend has continued for the rest of the first quarter.  The Company remains committed to developing new sales and marketing initiatives to generate revenue, whilst tightly controlling our costs and managing our cash. The Singapore retail market continues to be very challenging, and these tough conditions are expected to continue for the foreseeable future.

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

There were no significant post balance sheet events.

 

Gregory Collier                                    Phang Song Hua

CHAIRMAN                                           CHIEF EXECUTIVE

 

 

 



 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 



Year ended

Year ended

 Continuing operations


31 December

2016

31 December

2015



SGD'000

SGD'000



5,512

       7,852





(1,611)

       (2,237)


(3,120)

       (3,560)


(443)

           (651)


(137)

           (188)


-

(29)


(167)

           (217)


(166)

           (247)


(1,354)

       (1,508)


(991)

       (1,093)


656

             728


(1,821)

          (1,150)


(2)

             71


(1,823)

          (1,079)


(344)

(407)


(2,167)

(1,486)





(1)

(121)


(2,168)

(1,607)





(2,168)

(1,607)





SGD

SGD


          (0.02)

          (0.01)


          (0.00)

          (0.00)


(0.02)

(0.01)

 

 

Included in direct costs is an amount of SGD 457,000 (2015: SGD 544,000) related to commission costs.

 

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 


31 December

2016

31 December 2015


SGD'000

SGD'000

ASSETS




Non-current assets




Property, plant and equipment 


1,619

          1,454

Investment property


2,015

          2,070

Intangible Assets


51

80



3,685

          3,604

Current assets




Inventories


683

          864

Trade and other receivables 


346

         767 

Cash and cash equivalents 


2,390

          2,854



3,419

          4,485

Total assets


7,104

          8,089





EQUITY and LIABILITIES




Capital and reserves attributable to

equity shareholders




Share capital


243

           199

Share premium


2,221

       1,731

Other reserves


305

           360

Group reorganisation reserve


2,845

       2,845

Currency translation reserve


(259)

(258)

Accumulated deficit


(5,078)

       (2,911)

Total equity


277

       1,966





 

 

Current liabilities




Trade and other payables 


2,205

          1,282

Borrowings


1,354

              1,310

Restoration costs


8

                 145



3,567

          2,737

Non-current liabilities




Restoration costs


89

             20

Deferred tax liability


-

-

Borrowings


3,171

               3,366



3,260

         3,386

Total equity and liabilities


7,104

       8,089

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS


 

 

Year ended

31 December

2016

Year ended 31 December 2015


SGD'000

SGD'000

Cash flows from operating activities




Loss before income tax


(2,167)

(1,557)

Adjustments for:




Depreciation and amortisation expense


443

662

Fixed assets written off


71

22

Interest expense


91

199

Interest income

-

(11)

Impairment loss on trading securities

-

15

Loss on disposal of plant and equipment

8

-

Reversal of provision for restoration costs


(68)

(22)

Movement in reserve


81

(121)



(1,541)

(813)

Changes in working capital:-




Decrease in inventories


174

291

Decrease in receivables


419

782

Increase/(decrease) in payables


846

(152)

Deferred revenue


23

39

Cash generated from operations


(79)

147

Interest received


-

11

Income tax paid


(2)

-

Net cash(outflow)/ inflow from operating activities


(81)

158





Cash flows from investing activities




Acquisition of property, plant and equipment


(595)

(227)

Proceeds from disposal of PPE


-

106

Subscription to unsecured convertible loan notes


-

(75)

Net cash (outflow) from investing activities


(595)

(196)





Cash flows from financing activities




Proceeds from bank borrowings (net)


252

200

Repayment of convertible loan notes


-

(210)

Repayment of bank loans


(428)

(350)

Proceeds from obligations under finance leases


-

70

Repayment of finance lease liabilities


-

(21)

Interest paid


(91)

(57)

Net proceeds from share issue


479

-

Net cash from financing activities


212

(368)





Net decrease in cash and cash equivalents

(464)

(406)

Cash and cash equivalents at start of year - cash


2,854

3,260

Cash and cash equivalents at end of year


2,390

2,854





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 2015


199

1,731

(1,425)

360

2,845

(137)

3,573

Comprehensive income









Loss for the period


-

-

(1,486)

-

-

-

(1,486)

Other comprehensive income









Currency translation

 Reserve


-

-

-

-

-

(121)

(121)

Total comprehensive income for the year




(1,486)



(121)

(1,607)

At 31 December 2015


199

1,731

(2,911)

360

2,845

(258)

1,966










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)

-

-

-

                          (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

 

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..

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 2016 will be posted to shareholders today 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, Andy Thacker

+44 (0)1483 413500

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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