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(Extracted from Annual Report 2016)

Overview of financial results for the year ended 31 March 2016 ("FY2016")

The Group's revenue increased by S$85.2 million or a 32.6% to S$346.5 million in FY2016 from S$261.4 million in FY2015. The increase in revenue was mainly due to commencement of Warehouse Retail Scheme operations in Big Box in the fourth quarter of FY2015 and business expansion in Indonesia in the first quarter of FY2016. Warehousing and logistics services also contributed to the increase in revenue.

In line with the increase in the Group's turnover, gross profit increased by S$24.7 million to S$87.1 million in FY2016 from S$62.4 million in FY2015, while gross profit margin increased by 1.2 percentage point to 25.1% in FY2016 compared to 23.9% in FY2015.

The Group reported loss after tax amounting S$59.7 million in FY2016 compared to a loss after tax of S$54.5 million in FY2015. This was mainly due to an increase in operating expenses (such as staff costs and other operating expenses such as rental expenses as a result of commencement of BIG BOX operations and business expansion in Indonesia) as well as increase in depreciation charge relating to Big Box which was offset by a write-back of provision of Scheme and Scheme-related expenses. Excluding the effects of expense items listed below totalling S$73.2 million, the Group's net profit for the year would be S$13.5 million.

The Group's cash and cash equivalents decreased to S$18.6 million in FY2016, a decrease of S$7.6 million from S$26.2 million in FY2015. The decrease is due to cash used for operating activities and repayment of borrowings and interest on borrowings.

Performance by Geographical segments

During the year under review, the ASEAN region was the key contributor to the increase in turnover for the Group while all other geographical regions reported decrease in turnover. The increase in turnover in the ASEAN region was mainly due to the commencement of BIG BOX operations and expansion of business in Indonesia. The Group will continue with the process of closing its non-core operations and focusing on the ASEAN region.

Retail, Distribution and Trading Segment

The retail, distribution, and trading business segments contributed S$339.1 million to revenue in FY2016, or 97.9% of the Group's revenue, compared to S$257.4 million or 98.5% in FY2015.

Business Strategies

In taking confident strides forward, the Group will continue to emphasise its expertise in sourcing, trading and distribution networking. The Group will also look out for opportunities to expand its core subsidiaries in the ASEAN region as a buttress for sustainable growth and future developments. Our focus will remain targeted on businesses that are less working capital-intensive, yet able to yield higher profit margin and generate quicker cash flow. The Group will continue to focus on seeking fresh retail concepts and potential expansion.

With BIG BOX in full operation and reorganisation of the Indonesian retail business completed, the Group's next approach is to focus on strengthening its brands, improving operations and enhancing shopper experience across all business units while keeping a tight rein on overheads and operating expenses. The Group hopes to establish a strong foothold in the ASEAN retail sector.