Consolidated Statement of Comprehensive Income

For the financial period ended 30 June 2011 ("HY2011"), the Group recorded a 46.3% or $15.5 million increase in revenue compared to the previous corresponding financial period ("HY2010"), mainly due to the contribution of revenue from one LerkThai restaurant, one Peach Garden restaurant, one Peach Garden noodle house, two food courts at the Institute of Technical Education, six Sheng Kee Dessert stores and five fast food franchise restaurants (Texas Chicken). All these food establishments were launched during the second half of year 2010. During the current financial period, there were one food court at Singapore Flyer and one Sheng Kee Dessert store launched. Event Catering also experienced strong growth in revenue during the current financial period. Consequently, the increase of revenue has resulted in a higher gross profit.

The Group posted a profit after tax of $2,422K (excluding non-controlling interest) for HY2011 as compared to a profit after tax of $282K (excluding non-controlling interest) for the corresponding HY2010. The increase in profit after tax was mainly due to the strong growth of revenue. The disposal of loss making subsidiary, Wisteria Hotel, and the liquidation of another loss making subsidiary, Select Cafe Pte. Ltd., with 51% shareholdings in the second half of year 2010 also help to boost the bottom line.

As a result of business growth, Marketing and Distribution costs, Administrative expenses (inclusive of depreciation expenses) and Other expenses increased by 12.4%, 28.7% and 41.6% respectively in comparison to the corresponding HY2010. The increase in finance costs of $114K or 71.7% was mainly due to increase in bank borrowings in the second half of year 2010. Other credit decreased from $169K as of HY2010 to $8K for the current financial period because there was no government grant – job credits received during HY2011.

The increase of income tax expense was mainly attributable to the increase of profit for HY2011.


Statement of Financial Position
Property, Plant and Equipment registered an increase of $478K. The increase was mainly due to the cost of investment incurred for the setup of a new dessert outlet, Sheng Kee Dessert, and a food court as mentioned above during the current financial period. The slight decrease of $105K in intangible assets was due to amortization.

Trade And Other Receivables, Current increased by $2,467K or 43% in comparison to the corresponding HY2010 mainly due to the growth in revenue. Other Assets, Current increased from $2,490K to $3,263K mainly due to the prepayments and deposits paid for the two new food establishments during HY2011 as mentioned above. Assets Classified as Held for Sales pertained to a subsidiary, Wisteria Hotel, which was disposed at the end of year 2010.

Total liabilities has decreased during HY2011 mainly due to the repayment of bank borrowings of approximately $2,172K and the final cash payment of $1,800K for the acquisition of Peach Garden Group of restaurants in accordance with the Sales and Purchase Agreement signed in year 2008. Liabilities Directly Associated with Assets Classified as Held for Sale pertained to a subsidiary, Wisteria Hotel, which was disposed at the end of year 2010.

Statement of Cash Flow
The Group's operations in HY2011 generated a cashflow of $1,827K from operating activities as compared to a negative cashflow of $2,889K from operating activities in HY2010. The increase was in line with the increase in profits as comparing to the corresponding HY2010.

The increase of $1,690K cash used in investing activities was mainly due to new investments in a new dessert store and a food court as mentioned above during HY2011 as compared to HY2010. The net cash used in financing activities was mainly due to the repayment of bank loans during HY2011.

The decline in cash balance was mainly due to the repayment of bank loans and purchases of plant and equipment for the food establishments launched during HY2011 as mentioned above.