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Third Quarter Results Financial Statement And Related Announcement

Financials Archive

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Income Statement

Statement of Comprehensive Income

Balance Sheet

Review of Performance

Income Statement

Revenue

The Group achieved a revenue of S$0.19 million for Q3 FY2017, which saw a drop of 40% over the corresponding quarter of last financial year. The sales activities from F&B at Mulligans Pattaya was slow due to lesser tourist arrival and patronage. The Songkran festival during the period was directly affected with lesser crowd spending and activities. Clubs and pubs operations in all venues were demanded to mute on music and songs by the authorities. With such regular authority control, operations is indirectly facing difficulty in rolling out marketing and promotion activities. F&B activities are anticipated to improve moderately for the coming months. Trading activities for the reported quarter has also contributed to the drop in sales as demand has been low due to the economic slowdown. The management and operations will work collectively to enhance business operations and activities.

Miscellaneous income recorded and maintained at less than S$0.01 million in Q3 FY2017, comparing to corresponding quarter of last financial year.

Cost & Expenses

Inventories and consumables usage saw a drop of 60% to S$0.07 million. The decrease was mainly due to the lower sales activity and usage for the group in the reported quarter. Advertising, media and entertainment expenses declined by 63% to less than S$0.01 million mainly due to lower advertising spending and cost control effort from operations on such related expenses. Employee benefits decreased by 8% to S$0.22 million mainly due to effective staff deployment and cost control by management in the reported quarter. Amortisation and depreciation maintained at lower than S$0.01 million in Q3 FY2017 due to lesser depreciation charges incurred for the period.

The Group saw rental on operating lease increased marginally to S$0.06 million mainly incurred from rental expenses for the operations facilities in Q3 FY2017. Legal and professional fees amounted to S$0.07 million which increase was mainly due to the reversal of related professional fee recorded in the corresponding quarter of last financial year. The Group has taken actions and measures to manage all related cost and expenditures in the reported quarter. Other operating expenses in Q3 FY2017 recorded and maintained at S$0.04 million mainly derived from cost control measures and initiatives carried out at the operations and group level.

Total expenses in Q3 FY2017 decreased by 16% to S$0.45 million mainly due to the effective operations structure, and collective effort in reducing and managing all related expenses in the quarter. With the prevalent sales activities and lower cost structure contained in the quarter, the Group registered a loss of S$0.26 million in Q3 FY2017 as compared to S$0.23 million of last financial year's quarter.

Statement of Financial Position and Statement of Cash Flows

The group's current assets held as at 30 April 2017 was S$0.34 million. Non-current assets stated at less than $0.01 million as at 30 April 2017 comprising property, plant and equipment maintained after taking into account of amortisation and depreciation in Q3 FY2017.

Trade and other receivables increased to about S$0.10 million due to an increase in other receivables for the reported quarter. Other current assets which include security deposit and prepayment recorded at S$0.18 million as at 30 April 2017. The increase in other current assets are related to the prepayment on the right issues exercise. Inventory amount saw an increase to S$0.02 million as at 30 April 2017 being due to stock holding catered for the festive period and lower sales activities in the reported quarter.

Trade and other payables increased to S$1.3 million as at 30 April 2017. Trade and other payables include trade suppliers' payables, payables to contractors and services, and provisions and accrual as at Q3 FY2017.

The Group generated a negative cash outflow in operating activities of S$0.03 million for Q3 FY2017 mainly due to lower sales activities and the movement in working capital in the reported quarter. There is no cash flows from financing activities in the reported quarter. With the slow transaction structure, there is also no cash flows incurred for investing activities for Q3 FY2017. Cash and cash equivalents stood at S$0.04 million as at 30 April 2017.

The Group was in a net current liabilities of S$0.99 million as at 30 April 2017. The Group had negative equity of S$ 0.99 million at the end of the reported quarter comparing to negative equity of S$0.16 million as at 31 July 2016, mainly due to accumulated losses recorded for the quarter.

The Company had on 24 January 2017 announced a proposed renounceable non-underwritten rights cum warrants of up to 122,400,000 new Shares with up to 122,400,000 free detachable warrants. The directors / shareholders will continue to provide financial and business support to the Company to ensure smooth operations and compliance. The directors are also exploring on various fund raising with various parties. The materialization of these transactions would bring the Group's equity to a positive position.

Commentary

The Group continues to remain cautious about the outlook and condition of the overall business environment. The Board is mindful of the intense competition of this industry and will continue to explore business opportunities including fund raising exercise to position and transform its business profile and strategic direction.

The Company announced on 24 January 2017, the proposed consolidation of every fifty (50) existing ordinary shares in the capital of the Company into one (1) ordinary shares together with the proposed renounceable non-underwritten rights cum warrants issue of up to 122,400,000 new Shares ("Right Shares") at an issue price of S$0.025 with up to 122,400,000 free detachable warrants ("Warrants") at an exercise price of S$0.05. The share consolidation has been completed as per announcement on 25 April 2017. The renounceable non-underwritten rights cum warrants issue were fully subscribed with the Results of the Rights cum Warrants Issue announced on 2 June 2017.

The Group will update on further development accordingly.