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financials information

Full Year Results Financial Statement And Related Announcement

Financials Archive

Income Statement

Statement of Comprehensive Income

Balance Sheet

Review of Performance

Review of Income Statement

Revenue & Other Operating Income

The Group achieved a revenue of S$3.0 million for the financial year ended 31 July 2018 ("FY2018"), more than three-fold increase or S$2.3 million compared to the financial year ended 31 July 2017 ("FY2017"). The increase was mainly derived from the revenue contribution from the new subsidiary, e-Holidays Co., Ltd, which accounted for approximately 75% of the Group revenue. The Group is also working on various travel services network and promotion to expand the operations of the travel segment in Japan. Revenue from the F&B segment was contributed by Mulligans Pattaya, our only restaurant operating in Thailand, which accounted for the remaining Group revenue. The F&B segment saw an increase of approximately 6% compared to last financial year as a result of increase in tourists spending and better business conditions in Thailand. The outlet is continuously rolling out new marketing and promotion activities to attract customers.

Other operating income increased by 43% to approximately S$33,000 as a result of the employment grant from the Japan Ministry of Health, Labour and Welfare and income tax refund from Inland Revenue Authority of Singapore.

Cost & Expenses

Inventories and service expenses increased by S$1.8 million from S$0.3 million in FY2017 to S$2.1 million in FY2018, consistent with the increase in the Group's revenue, mainly contributed by the increased sales activities from travel services and F&B outlet in FY2018. Advertising, media and entertainment expenses increased to S$0.2 million mainly due to the increased advertising activities and promotion to attract more customers.

Employee benefits and staff costs increased by S$1.6 million from S$0.8 million in FY2017 to S$2.4 million in FY2018 due to additional staff hired as the Group geared up for F&B expansion. The increase in amortisation and depreciation charges of S$0.1 million is due to the depreciation of fixed assets from the business entities and the amortisation of intangible assets.

Operating lease expenses increased from S$0.2 million to S$0.3 million, or 41%, mainly due to the increased office rental expenses from the new subsidiary. Legal and professional fees increased from S$0.3 million to S$0.5 million, or 44%, mainly due to fees paid for the share issuance exercise and new business expansion. Other operating expenses in FY2018 increased from S$0.2 million to S$0.3 million, or 33%, mainly due to processing and lodgment fee for the right issues incurred during the year.

Total expenses in FY2018 increased from S$1.8 million to S$5.9 million as a result of increased operating costs and related employee expenses, which is directly attributed to higher sales activities and business expansion. As a result of the business expansion, the Group registered a loss of S$2.9 million in FY2018 as compared to a loss of S$1.1 million in FY2017.

Review of Statement of Financial Position as at 31 July 2018

Current assets

The Group's current assets increased by S$0.9 million, from S$2.4 million as at 31 July 2017 to S$3.3 million. This was mainly a result of the increase in trade and other receivables of S$1.3 million, which comprise mainly deposit of S$0.5 million paid for the investment in joint venture, prepayment and deposits of S$0.3 million and suppliers prepayment of S$0.4 million, partially offset by a decrease in cash and cash equivalents of S$0.4 million.

Non-current assets

The Group's non-current assets increased by S$1.0 million, from approximately S$7,000 as at 31 July 2017 to S$1.0 million. This was due to the goodwill and intangible assets of S$0.4 million arising from the acquisition of a subsidiary, the increase in fixed assets of S$0.4 million and deposit of S$0.2 million related to the issuance of the travel agency licence.

Current liabilities

The Group's total current liabilities increased by S$1.0 million, from S$0.3 million as at 31 July 2017 to S$1.3 million mainly due to an increase in trade and other payables of S$1.0 million. The existing bank borrowings amounted to approximately S$33,000 is attributed to the travel business.

Non-current liabilities

The Group recorded non-current liabilities of approximately S$8,000 as at 31 July 2018.There were no such borrowings as at 31 July 2017.

Equity

The Group's shareholders' equity increased by S$0.9 million from S$2.1 million as at 31 July 2017 to S$3.0 million. The increase was due to the net loss recorded by the Group and partially offset by the new shares issued during the year.

Review of Statement of Cash Flows

The Group's net cash used in operating activities in FY2018 was S$3.1 million, mainly due to operating cash flows before working capital of S$2.8 million and working capital outflow of S$0.3 million. This is mainly due to the Group being in the business expansion phase.

The Group's net cash used in investing activities in FY2018 was S$1.1 million, mainly due to acquisition of a subsidiary of S$0.8 million and purchase of plant and equipment of S$0.3 million.

The cashflow from financing activities in FY2018 was S$3.7 million, mainly due to the proceeds from the issuance of new shares amounting to S$3.9 million.

As a result, cash and cash equivalents stood at S$1.8 million as at 31 July 2018.

Commentary

The Group continues to remain cautious about the outlook and condition of the overall business environment in the travel and food and beverage ("F&B") industry. The Board is mindful of the intense competition of this industry, tight labour supply and increasing costs.

The Group will continue to explore new business opportunities as well as controlling its costs to improve operational efficiency. The Company may explore fund raising exercises to strength its cash position for future business expansions.

The Group will continue to seek opportunities to expand its presence by way of acquisitions and forming new joint-ventures with potential partners. The Group also started a new high-end F&B sushi business led by celebrity Chef, Hatch Hashida, and the new restaurant in Singapore is expected to be operational by late September 2018.

As announced on 30 July 2018, the Group has entered into a joint venture agreement with Office Hashida to operate its high-end F&B business in California, US and the investment has been completed on 25 September 2018. We expect the new restaurant be operational by end of the year.

The Group is currently in the process of expanding its travel business by extending services to both inbound domestic tour and overseas travellers. The fintech business unit is currently targeting a key markets in South East Asia as well as in Japan to exploring collaboration and partnership with Financial Institutions to launch its Robo Advisor Platform. Our key segment remains as Retail Banks, Asset Managers, Pension Funds, Brokers and Insurance companies.


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