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8
Annual Report 2013 LifeBrandz Ltd
LETTER TO
SHAREHOLDERS
concepts to attract the discerning
revellers. However, the performance
of our existing brands and concepts
including Aquanova and Mulligan’s
remained strong and popular with
both locals and tourists, and was able
to sustain positive operating margins.
During the fnancial year, the Group
made great strides in managing and
reducing operating costs. The Group
was able to lower total expenses in
FY2013 by S$8.5 million (25%)
to S$25.2 million compared to
S$33.7 million in FY2012. In
particular, the cost components
that saw the biggest drop were
Other Operating Expenses and
Depreciation and Amortisation.
As a result of better cost management
at the various outlets, the Group was
able to shave off S$2.7 million (70%)
in Other Operating Expenses from
S$3.8 million in the previous fnancial
year to S$1.1 million in FY2013.
In the same vein, Depreciation and
Amortisation expenses including
S$0.3 million amortisation of
intangible assets acquired in FY2013
also declined by 51 per cent to
S$1.2 million this fnancial year from
S$2.5 million in FY2012, mainly due
to lesser depreciation charges from
the active operating outlets in FY2013.
Expenses incurred for advertising,
media and entertainment and contract
services for security also declined by
27 per cent and 23 per cent to
S$3.1 million (FY2012: S$4.2 million)
and S$0.4 million (FY2012:
S$0.5 million) respectively. Employee
benefts were lower by S$2.4 million
in FY2013, from S$10.5 million in
the last fnancial year to S$8.1 million
due to the leaner staff force as a
result of the closure of some outlets.
Our prudent cost management
measures implemented during the
fnancial year enabled the Group to
register a modest net proft of
S$0.2 million, which was nonetheless
a signifcant improvement compared
On behalf of the Board of
Directors, I am pleased to
present the annual report for
LifeBrandz Ltd (the Group) for the
fnancial year ended 31 July 2013
(FY2013).
Our continuous efforts to streamline
and rationalise our operations over
the last two years has borne fruit.
During the fnancial year under
review, the Group was able to turn in
a positive performance with a return
to proftability, notwithstanding the
challenging business environment.
Our strategy to introduce new
concepts and to acquire proftable
businesses to improve cash fow and
increase profts – even as we phased
out businesses that were not viable
– had been proven to be sound and
pivotal in driving the Group on the
road to sustainable growth.
Group revenue in FY2013 came in
at S$25.4 million, 13 per cent lower
than the S$29.2 million achieved in
FY2012. This can be attributed to
overall lower business volume due
to temporary closures and disruption
of operations in some of our outlets
as part of our efforts to revamp
establishments and to introduce new