Financials

Full Year Results Financial Statement And Related Announcement


Financials Archive

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Income Statement

Balance Sheet

Review of Performance

Income Statement

In FY2018, the Group registered a turnover of S$112.5 million. This represents an increase of S$111.7 million as compared to S$0.9 million FY2017. The increase is mainly due to the increase in shareholdings in Jubilee Industries Holdings Ltd ("Jubilee"). This resulted in Jubilee being accounted for as a subsidiary of the Company with effect from the 29 June 2017 rather than an associated company. This accounting treatment is a result of converting the convertible loan outstanding to shares in Jubilee. Gross profits for FY2018 increased by S$4.9 million compared to FY2017 of S$0.1 million.

Other gains was S$6.0 million for FY2018 as compared to other losses of S$3.7 million in FY2017. The increase of S$9.7 million in FY2018 was mainly due to net gain on bargain purchase of Jubilee amounting to S$5.4 million after netting off amortisation. There was also an impairment of associated company of S$5.0 million in FY2017, that was not present in FY2018.

Operating expenses rose from S$2.8 million in FY2017 to S$11.0 million in FY2018. Marketing and distribution expenses increased by S$1.0 million from S$0.08 million in FY2017 to S$1.0 million in FY2018. Administration expenses increased by S$6.3 million from S$2.6 million in FY2017 to S$8.9 million in FY2018. This is due to staff cost incurred with Jubilee being a subsidiary of the Company. Finance costs increased from S$0.1 million in FY2017 to S$1.1 million in FY2018 mainly due to interest incurred by Jubilee. Share of profit from associate was S$0.3 million in FY2018 as compared to a share of loss of associate of S$2.1 million in FY2017. This is mainly due to the associate being profitable in FY2018.

Balance Sheet

Non-current assets increased by 41% from S$21.2 million as at 31 March 2017 to S$29.9 million as at 31 March 2018.As mentioned above,the increase is mainly due to the increase in shareholdings in Jubilee resulting in Jubilee being a subsidiary rather than an associated company.

Current assets as at 31 March 2018 comprised inventories, trade and other receivables, other assets, financial assets available for sale and cash and cash equivalents. Total current assets amounted to S$60.8 million as at 31 March 2018 as compared to S$30.2 million as at 31 March 2017. The increase of S$30.5 million is mainly attributable to the increase in inventories of S$15.1 million, increase in trade and other receivables of S$18.4 million, increase in financial assets available for sale of S$1.3 million and increase in cash and cash equivalents of S$7.2million. This increase is due to accounting Jubilee as a subsidiary rather than an associated company.

Current liabilities as at 31 March 2018 comprised income tax payable, trade and other payables and other financial liabilities. Total current liabilities amounted to S$36.1 million as at 31 March 2018 as compared to S$4.8 million as at 31 March 2017. The increase of S$31.3 million is mainly due to an increase in trade and other payables and other financial liabilities of S$26.1 million and S$5.1 million respectively from accounting Jubilee as a subsidiary rather than an associated company.

Non-current liabilities comprised deferred tax liabilities, convertible loan and other financial liabilities. Total non-current liabilities amounted to S$6.0 million as at 31 March 2018 as compared to S$5.3 million as at 31 March 2017.The decrease is mainly due to repayment of the convertible loan.

The Group had working capital of S$24.7 million as at 31 March 2018 as compared to S$25.5 million as at 31 March 2017. The decrease is due to the trade and other payables increasing at a greater rate than trade and other receivables being in line with the increase in cash and cash equivalents.

Cash Flow Statement

Net cash flow generated from operating activities for FY2018 was S$4.6 million, comprising operating loss before working capital changes of S$1.5 million and cash generated from operations of S$6.1 million. The working capital outlow was mainly due to the increase in inventories of S$2.2 million, increase in other assets of S$0.9 million, and decrease in trade and other payables of S$16.6 million. This decrease is offset by the decrease of trade and other receivables of S$25.8 million. Net cash generated from investing activities for FY2018 of S$2.9 million was mainly due to the acquisition of a subsidiary of S$4.1 million and subscription of rights shares of Jubilee of S$1.1 million. This increase is offset by the addition of available-for-sale financial assets of S$2.3 million. Cash used in financing activities of S$2.9 million is mainly due to bank deposits pledged and interest paid of S$2.2 million and S$1.0 million respectively. This is offset by the issuance of ordinary shares for the payment of interest on the convertible loan of S$0.3 million. The Group's cash and cash equivalent was S$7.7 million as at 31 March 2018 as compared to S$3.2 million as of 31 March 2017, a net increase of S$4.5 million.

Commentary

The Group noted that the operating environment would be challenging going forward. The Group will work and devote its resources to seek new opportunities in new business segments. The Group will remain vigilant on cost,credit and cash management in response to the volatile operating environment as it carries out its expansion strategies.

The Company announced on 23 January 2018 on the proposed acquisition of Refresh Laser Clinic Lot1 Pte. Ltd., Refresh Laser Clinic Tampines Pte. Ltd., Refresh Laser Clinic Tpy Pte. Ltd., and Refresh Laser Clinic Bedok Pte. Ltd. for a purchase consideration of S$4 million. This purchase consideration would be paid by the Company by way of cash amounting S$2 million and an allotment of shares in the share capital of the Company for the residual S$2 million. The Company is of the opinion that the Aesthetics Medical Services sector has good prospects for the long-term growth of the Company with the social acceptance of this increasing. The Company intends to expand the Aesthetics Medical Services sector via its subsidiary's crowdfunding platform to reach out to potential investors, and this is in line with its expansion strategies. This proposed acquistion is subject to shareholders' approval.

Furthermore, in line with the Company's intention to expand its Corporate Accretion Services, the Company had on 13 April 2018 entered into a non-binding memorandum of understanding with Liaoning Meal Plus Technology Ltd. ("Liaoning Meal Plus") for a proposed acquisition of the latter. Liaoning Meal Plus is in the primary business of developing software and machinery for the food and beverage industry.