 |
Income Statement
For the financial period ended 30 June 2006 (¡°1H FY06¡±), the Group achieved a 11% increase in
revenue compared to the previous corresponding period 1H FY05, mainly driven by increased orders from Institutional Catering operation in Suzhou, PRC. Net profit after tax increased 36% for 1H FY06 compared to 1H FY05.
On a segmental basis, sales of the Group's Institutional Catering division grew by $969,000 or 10% to $10.6m. The sales generated in our Suzhou operation increased at an encouraging rate of 146% to $2.3m for 1H FY06 as compared to sales of $953,000 for 1H FY05. At this level, the Suzhou operation sales constitute 9% of the overall Group's revenue for 1H FY06 as compared to 4% for 1H FY05. The higher sales translated to lower losses for 1H FY06 which partially improved the overall Group profit for the period. While the sales in Singapore have declined by $422,000 or 5% to $8.2m for 1H FY06, the Singapore operation continues to contribute positively to the Group's profit.
The sales of the Group's Food Retail division declined by $655,000 or 7% to $9.0m. The number of food retail establishments declined from 45 as at 30 June 2005 to 32 as at 30 June 2006. With this decrease, the sales have declined correspondingly. Out of the 32 food retail establishments, there are 4 Lerk Thai restaurants and the latest addition is the outlet at Whitesand mall. The contribution from this restaurant is not felt in 1H FY06 as it only began operation towards end of June 2006.
The Group's Food Catering division grew by $348,000 or 9% to $4.2m. The growth was attributed to organic growth in the traditional business of catering to corporate and retail customers. The Group changed its tactical approach to marketing to better target customers, thereby resulting in positive
response.
In 1H FY06, the Group announced the creation of a new segment known as Hospitality and Clubs
division. This segment is created to allow the Group to target the country and recreational clubs
business including managing Flavours East at Singapore Expo. For 1H FY06, sales improved by
$1.1m or 145% to $1.9m as compared to 1H FY05.
Balance Sheet
The Group's reserves increased marginally to $7.3m from $7.1m mainly due to the 1H FY06 profit
offset by the dividends paid out.
Current assets remained largely unchanged at $10.1m as compared to $10.4 as at end of FY05.
Current liabilities declined slightly to $11.4m from $12.2m mainly due to lower level of trade and other payables. Non-current liabilities declined slightly to $2.2m from $2.5m as the Group paid down its bank borrowings.
The Group's fixed assets decreased slightly to $10.8m from $11.4m mainly due to normal
depreciation offset by purchase of plant and machinery in the ordinary course of business.
Cash Flow
Net cash from operating activities increased by $850,000 in 1H FY06 as compared to 1H FY05 mainly because of higher profit level and higher short-term funding in working capital.
The Group invested less in fixed asset in 1H FY06 as compared to 1H FY05 as the investment in
Flavours East was mainly done in the last corresponding period.
Cash used in financing activities was mainly for the repayment of bank borrowings and payout of dividends in May 2006.
With the above-mentioned reasons, the Group recorded a net cash decrease of $832,000 for 1H
FY06.
|
