The Group achieved a revenue of S$0.43 million for Q1 FY2018, which saw an increase of S$0.28 million over the corresponding quarter of last financial year. The increase was mainly derived from the new transactions of e-Holidays Co., Ltd which contributed about 73% of the group revenues. The group is working and initiating on various trends to promote such related travel services transactions and activities. The sales activities from F&B at Mulligans Pattaya saw a continued decline of activities mainly affected by the economical and weather climate. The F&B industry is facing slowdown trends due to the drop of tourist arrival. Clubs and pubs operations have been demanded to tune down by the authorities in anticipation of the death anniversary of the late Thai King. This has negatively affected sales activities to the outlet's operation. With such constraint, marketing and promotion activities have been affected in all aspects. F&B activities are anticipated to improve progressively in the coming months. The management will work strategically with the operations to manage and enhance the business performance of the F&Bs and service activities.
No miscellaneous income and expenses was recorded in both Q1 FY2018 and Q1 FY2017.
Cost & Expenses
Inventories and services expenses saw an increase of S$0.26 million to S$0.32 million. The increase in cost was mainly contributed by higher sales activities from travel services which was partially offset by the lower sales from the F&B outlet in the reported quarter. Advertising, media and entertainment expenses increased to S$0.01 million mainly due to increase advertising activities and promotion from the higher revenues and operations activities. Employee benefits increased by 77% to S$0.39 million mainly due to additional staff deployment and new setup entities for the business operations in the reported quarter. Amortisation and depreciation charges increased to less than S$0.01 million in Q1 FY2018 due to higher depreciation charges for the business entities incurred for the period.
The Group saw rental on operating lease increased by 11% to S$0.06 million mainly incurred form rental expenses for the head office and business premises facilities in Q1 FY2018. Transportation expenses amounting to less than S$0.01 million in the reported quarter mainly incurred for the expanded business and operating activities. Legal and professional fees saw an increase of 44% to S$0.1 million mainly due to related professional and legal fees incurred for the new business transactions and activities in the related quarter. Other operating expenses in Q1 FY2018 saw an increase of 88% to S$0.06 million mainly incurred for related expenses to the corporate structure and new business entities.
Total expenses in Q1 FY2018 saw an increase of S$0.51 million to S$0.96 million mainly due to the increase in operating cost and related employee expenses. Such increase is directly contributed from the increase in business setups and transactions in the reported quarter.
Statement of Financial Position and Statement of Cash Flows
The group's current assets held as at 31 October 2017 was S$2.02 million. Non-current assets stated at S$0.59 million as at 31 October 2017 mainly due to the inclusion of the goodwill of S$0.22 million from the acquisition of the e-Holidays Co., Ltd, and the deposit of S$0.17 million related to the issuance of the travel agency licence. Fixed assets comprising property, plant & equipment amounted to S$0.2 million as at 31 October 2017 after taking into account of amortization and depreciation in Q1 FY2018.
Trade and other receivables maintained at S$0.06 million with activities and collections being consistent in the reported quarter. Other current assets which include security deposit, advances and prepayment increased to S$0.54 million mainly due to the higher activities and expanded business transactions. Inventory amount saw a decrease to S$0.01 million as at 31 October 2017 being due to better control on stock holding and management for the reported period.
Trade and other payables increase to S$0.96 million as at 31 October 2017 mainly due to the expanded business structure and activities. Trade and other payables include trade suppliers' payables, advance receipts from customers, payable to contractors, provisions and accruals as at Q1 FY2018.
There is an existing bank facility amounted to S$0.07 million which attributed to the acquired travel business. Such loan granted is to facilitate the business activities of the related business segment. The duration of the loan payable is S$0.05 million within the current year and the balance of S$0.02 million in the pursuing years.
The Group generated negative net cash in operating activities of S$0.01 million mainly due to the operating loss and the movement in working capital in Q1 FY2018. Cash flows used in investing activities amounting to S$0.79 million in Q1 FY2018 comprising amount of S$0.78 million on the acquisition of e-Holidays Co., Ltd, and amount of S$0.01 million incurred for operating equipment for the business and the exchange translation of the related entities. The cashflow used in financing activities amounting less than S$0.01 million in Q1 FY2018 mainly incurred for repayment of bank facilities. Cash and cash equivalents stood at S$1.41 million as at 31 October 2017.
The Group is in a positive equity position amounted to S$1.6 million as at 31 October 2017 as compared to S$2.1 million as at 31 July 2017.
The Company incorporated a wholly-owned subsidiary, Finesse Digital Pte Ltd on 8 September 2017 with a paid-up share capital of S$1.00 to provide fintech application and innovation, information technology and development service. The Company further incorporated another wholly-owned subsidiary, LB F&B Pte Ltd on 4 October 2017, with a paid-up share capital of S$1.00 to provide food and beverage services. The directors will continue to explore on various fund raising activities and transactions with interested parties to better position the assets and structure of the Group.
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 the related industry and will continue to explore business opportunities which may include fund raising exercise to position and transform its business profile and strategic direction.
With the approval and mandate of the business diversifications to include travel, fintech, IT and fund management businesses, the Company is in process to structure and direct these related segments to attain all business feasibilities and operation activities in the coming periods.
The Group will update on further development on this matter accordingly.