Financials
Third Quarter Financial Statements and Dividend Announcement for the Period Ended 31 December 2011 (Unaudited)
Financials Archive
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Income Statement
Statement of Comprehensive Income
Balance Sheets
Review of Performance
Overview
With the Scheme of Arrangement sanctioned on 13 October 2010 and the Scheme effective from 19th April 2010, the Group continues striving to normalize its business and restore suppliers' and customers' confidence.
However, the continued working capital constraint and challenging market conditions have resulted in revenue for quarter ended 31st December 2011 declining to S$99.5 million,8.9% lower compared to the corresponding quarter last year. This was in spite of higher sales in the retail segment (in line with the Group's strategy to shift focus to the retail business), offset mainly by lower sales recorded by the distribution and trading segment.
For the current quarter under review, the Group recorded profit from operations of S$1.4 million (before accounting for exchange difference of S$0.6 million, restructuring expenses and professional fees of S$1.7 million) compared with profit from operations of S$4.3 million (before accounting for exchange difference of S$16.6 million, restructuring expenses and professional fees of S$2.0 million) for the previous corresponding period. Performance for the current period was affected by lower sales volume and sales margin due to poor economic environment and weaker consumer sentiment.
Commentary On Current Year Prospects
After the Court of Appeal sanctioned the Scheme of Arrangement on 13 October 2010, the Company remains committed to work towards the successful implementation of the Scheme. However, the continued global economic turmoil, weakened consumer sentiments and a general pessimism in business outlook, have made the Group's business very challenging. Management will nevertheless do its best to overcome these challenges.
Under the circumstances the group continues to focus on growing businesses which require lesser working capital and generate faster cash conversion cycles.
As announced on 4 January 2012, the Group entered into a Heads of Agreement with Lucrum Development (Singapore) Pte Ltd for the Warehouse Retail Scheme project in Jurong East. Negotiations are ongoing to finalise the Definitive Agreement and any material developments will be announced accordingly.
The financial statements are also prepared on a going concern basis as the directors believe that these financial statements provide sufficient information to serve the interests of shareholders and other stakeholders.
While the Scheme has been sanctioned by the Court of Appeal, other matters stated in the Note may continue to be applicable, and shareholders and investors are advised to be aware of the basis of preparation of the financial statements.
The Company will continue to update the SGX-ST, Scheme Creditors, shareholders and the investing public on any material developments on a timely basis.
Shareholders and the public are advised to continue to exercise extreme caution before making any decision in respect of their dealings in the Company's shares.