On a segmental basis, the Group’s Institutional Catering division recorded sales of $21.0 million, and now accounts for 39.5% of Group revenue.

The Food Retail division recorded sales of $16.9 million, and now accounts for 31.9% of Group revenue.

The Food Catering division recorded sales of $11.7 million, and now accounts for 22.0% of Group revenue.

Earnings per share rose to 0.28 cents in FY 2006 from 0.03 cents in FY 2005 while Net Asset Value per share declined to 7.49 cents from 7.71 cents.

Current assets decreased by $0.4 million, or 3.9%, mainly due to lower cas level.

The decrease in the value of property, plant and equipment to $10.3 million, from $11.4 million in FY 2005, resulted mainly from normal annual depreciation.

Current liabilities decreased by $0.4 million due to lower amount of trade and other payables. Non-current liabilities decreased due to repayment of loan.

As at the end of FY 2006, the Group maintained a healthy net gearing at 0.26. Net cash from operating activities increased by $0.4 million, or 51.6%, from FY 2005 to FY 2006, which is attributed to higher profit level.

The Board has proposed a final dividend of 0.30 cents (tax exempt) per ordinary share, which will be paid on 22 May 2007, if approved at the Annual General Meeting.

Institutional Catering

Our Singapore team was busy overseas in 2006 and secured contracts in Malaysia and Thailand as well as expanding our Institutional Catering business in Singapore. Following our expansion into Malaysia last year, in December 2006 we began a three-year contract with one of the largest MNC in southern Malaysia to serve 8,000–10,000 meals per day. In Thailand, we will begin a three-year contract in February 2007 with an MNC servicing about 6,000 meals per day.

In Singapore, we ended 2006, with 20 contracts for on-site catering, of which two were for club operations and one in the uniformed services segment. Our expansion into these new segments is part of our diversifi ed strategy for this division.

In Suzhou, we tightened our operations and secured three new on-site contracts. Our new strategy is to structure more long-term on-site contracts.

Food Catering

Our Food Catering division continues to be very focused on events requiring buffets, banquets and sit-down dinners, and in 2006 we catered two very large, high-profi le events, for the IMF and the Amway Incentive Group. Stamford Catering provided 48,000 packed meals over a period of 21 days for security officers working at the IMF meeting in September. SCS Food Services catered to six waves of 10,000 people for three meals each at the Amway meeting held in late July and early August.

Our Flavours East operation at Singapore Expo benefi ted from higher visitor volumes as the conference and exhibition centre hosted more events in 2006 and all of the restaurants at our hub have full year operation.

Food Retail

In 2006, we reduced the number of non-profi table outlets and have recently opened two more Lerk Thai restaurants, bringing our total to five outlets. Following the completion of the franchise programme for Lerk Thai and to launch our marketing programme, we exhibited at a franchise exhibition in Singapore in an effort to attract the attention of prospective overseas franchisees. In January 2007, we secured a contract for the staff cafeteria at Terminal 1 of Singapore Changi Airport; we have been operating the staff cafeteria at Terminal 2 since December 2005.

On 20 January 2007, the shareholders approved the proposed allotment and issue of 39 million new shares in the capital of the Company to Alimento Holdings Limited thereby raising $7 million in new capital. We believe that this share subscription will bring value to shareholders by helping us to continue to explore new business opportunities with better profi t margins. This would include developing new business segments and markets to enhance the Group’s food catering and retail businesses.

We welcome Mr Jorg Behrend, our new chief operating officer and executive director. Mr Behrend’s expertise in the food and beverage industry, particularly that of five-star hotels, will help us to raise our food quality to compete more successfully in the high-margin premium banqueting business.

In 2007, we will pursue new business opportunities more aggressively, through 7 brand differentiation and higher focus on value-added catering businesses. We are targeting institutions such as student boarding houses, hospitals, international schools and hotel staff cafeterias as well as some mid-sized cafeterias for SME companies with 200 to 500 staff.

In China, we plan to serve more multinational companies at the business park and will continue to trim our operating and fixed costs.

We will continue to step up effort to establish our new operations in Malaysia and Thailand.

In Singapore, we plan to market our food catering services more aggressively and will also work on brand differentiation as we seek to distinguish between Select Catering, as the choice for low to middle price range household events, and Stamford Catering, for middle to high price range buffets and sit-down dinners for companies.

In 2007, we plan to expand our successful Lerk Thai chain and open three to five more restaurants in Singapore. With the completion of the franchise development programme, we are actively searching for overseas franchisees. In line with our commitment to developing new business segments in food retail, we plan to develop new casual dining restaurants and one commercial food court in Singapore.

Finally, on behalf of the Board, I would like to thank our investors and business partners for their continued support and to our employees for their dedication and commitment.