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Half Year Financial Statement And Dividend Announcement

BackAug 15, 2003

PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-YEAR AND FULL YEAR RESULTS

1(a) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year

	Group
	Jun 30, 2003	Jun 30, 2002
	$'000	$'000
Revenue	29,279	33,339
Cost of sales	(8,471)	(9,568)
Gross profit	20,808	23,771
Other operating income	125	54
Staff costs	(8,805)	(10,186)
Administrative expenses	(1,643)	(1,833)
Other operating expenses	(10,159)	(11,150)
Profit from operations	326	656
Finance cost	(119)	(101)
Profit before income tax and share of loss in joint venture	207	555
Share of loss in joint venture	(454)	(1,171)
	(247)	(616)
Income tax expense	(100)	(138)
Loss after income tax	(347)	(754)
Minority interest	60	(74)
Loss for the period	(287)	(828)

Additional information for Income Statement above :-

	Group
	Jun 30, 2003	Jun 30, 2002
	$'000	$'000
Other income including interest income	(125)	(54)
Interest on borrowings	119	101
Depreciation and amortisation	1,099	1,023
Loss on disposal of property, plant and equipment Loss on disposal of a subsidiary	11 23	35 -

1(b)(i) A balance sheet (for the issuer and group), together with a comparative statement as at the end of the immediately preceding financial year

	Group		Company
	June 30, 03	Dec 31, 02	June 30, 03	Dec 31, 02
	$'000	$'000	$'000	$'000
ASSETS
Current assets:
Cash and bank balances	1,862	3,832	19	169
Trade receivables	1,633	1,677	-	-
Other receivables, deposits and prepayments	3,320	2,144	2,797	2,780
Inventories	938	1,280	-	-
Total current assets	7,753	8,933	2,816	2,949
Non-current assets:
Subsidiaries	-	-	1,797	1,797
Joint venture	(969)	(515)	1,000	1,000
Property, plant and equipment	9,958	10,727	-	-
Total non-current assets	8,989	10,212	2,797	2,797
Total assets	16,742	19,145	5,613	5,746

LIABILITIES AND EQUITY
Current liabilities:
Bank overdrafts	109	398	-	-
Trade payables	3,482	4,015	-	-
Other payables	5,916	5,959	2,256	2,230
Current portion of finance leases	300	604	-	-
Term loans	742	1,256	-	-
Income tax payable	280	271	7	7
Total current liabilities	10,829	12,503	2,263	2,237
Non-current liabilities:
Finance leases	134	266	-	-
Long-term loans	2,042	2,292	-	-
Deferred income tax	485	485	-	-
Total non-current liabilities	2,661	3,043	-	-

Minority interests	505	565	-	-

Capital and reserves:
Issued capital	3,000	3,000	3,000	3,000
Share premium	4,595	4,595	4,595	4,595
Accumulated losses	(4,848)	(4,561)	(4,245)	(4,086)
Total equity	2,747	3,034	3,350	3,509

Total liabilities and equity	16,742	19,145	5,613	5,746

1(b)(ii) Aggregate amount of group's borrowings and debt securities

Amount repayable in one year or less, or on demand

As at 30/06/2003

As at 31/12/2002

Secured	Unsecured	Secured	Unsecured

$378,000	$664,000	$679,000	$1,181,000

Amount repayable after one year

As at 30/06/2003

As at 31/12/2002

Secured	Unsecured	Secured	Unsecured

$1,920,000	$256,000	$2,041,000	$517,000

Details of any collateral

1. Mortgage of No. 20, Bukit Batok Crescent #11-05, 06, 07, 08, 09 Enterprise Centre

Singapore 658080.

2. Kitchen equipment and furnitures under finance leases.

1(c) A cash flow statement (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year

	1 Jan 03	1 Jan 02
	30 Jun 03	30 Jun 02
	$'000	$'000
Cash flows from operating activitives
Profit before income tax and share of loss in joint venture	207	555
Adjustments for:
Depreciation expense	1,099	988
Amortisation of goodwill	-	35
Loss on disposal of a subsidiary	23	-
Interest income	(1)	(30)
Interest expense	119	101
Loss on disposal of property, plant and equipment	11	35
Operating profit before working capital changes	1,458	1,684
Trade receivables	19	322
Other receivables, deposits and prepayments	(1,178)	(1,177)
Inventories	317	55
Trade payables	(79)	(757)
Other payables	3,677	1,676
Cash generated from operations	4,214	1,803
Interest paid	(119)	(101)
Interest received	1	30
Income tax paid	(91)	(4)
Net cash from operating activites	4,005	1,728
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment	18	7
Purchase of property, plant and equipment	(359)	(1,390)
Cash outflow on disposal of a subsidiary	(4,403)	-
Investment in joint venture	-	(1,000)
Minority interest	-	(90)
Net cash used in investing activities	(4,744)	(2,473)
Cash flows from financing activities
Net (repayments) proceeds from bank loans	(659)	110
Repayments of obligations under finance leases	(283)	(157)
Net cash used in financing activities	(942)	(47)
Net decrease in cash	(1,681)	(792)
Net cash at beginning of period	3,434	4,571
Net cash at end of period	1,753	3,779

Summary of the effects of disposal of a subsidiary

		$'000
	Inventories	25
	Trade receivables	25
	Others receivables	2
	Cash and bank balances	24
	Trade payables	(454)
	Others payables	(3,721)
	Term loan	(104)
	Finance lease	(153)
	Loss on disposal	(23) ______
	Net liabilities disposed	(4,379)
	Less: Cash at bank of a subsidiary disposed	(24) ______
	Cash outflow on disposal of a subsidiary	(4,403) =====

1(d)(i) A statement (for the issuer and group) showing either (i) all changes in equity or (ii) changes in equity other than those arising from capitalisation issues and distributions to shareholders, together with a comparative statement for the corresponding period of the immediately preceding financial year

	GROUP
	Issued capital	Share premium	Accumulated losses	Total
	$'000	$'000	$'000	$'000
Balance as at January 1, 2002	2,500	2,927	(84)	5,343
Net loss for the period	-	-	(828)	(828)
Balance as at June 30, 2002	2,500	2,927	(912)	4,515
Balance as at January 1, 2003	3,000	4,595	(4,561)	3,034
Net loss for the period	-	-	(287)	(287)
Balance as at June 30, 2003	3,000	4,595	(4,848)	2,747


	COMPANY
	Issued capital	Share premium	Accumulated losses	Total
	$'000	$'000	$'000	$'000
Balance as at January 1, 2002	2,500	2,927	(372)	5,055
Net profit for the period	-	-	53	53
Balance as at June 30, 2002	2,500	2,927	(319)	5,108
Balance as at January 1, 2003	3,000	4,595	(4,086)	3,509
Net loss for the period	-	-	(159)	(159)
Balance as at June 30, 2003	3,000	4,595	(4,245)	3,350

1(d)(ii) Details of any changes in the company's share capital arising from rights issue, bonus issue, share buy-backs, exercise of share options or warrants, conversion of other issues of equity securities, issue of shares or cash or as consideration for acquisition or for any other purpose since the end of the previous period reported on. State also the number of shares that may be issued on conversion of all the outstanding convertibles as at the end of the current financial period reported on and as at the end of the corresponding period of the immediately preceding financial year

There were no changes in the Company's share capital.

2. Whether the figures have been audited, or reviewed and in accordance with which standard (e.g. the Singapore Standard on Auditing 910 (Engagements to Review Financial Statements), or an equivalent standard)

The figures have not been audited nor reviewed by our auditors.

3. Where the figures have been audited or reviewed, the auditors' report (including any qualifications or emphasis of matter)

4. Whether the same accounting policies and methods of computation as in the issuer's most recently audited annual financial statements have been applied

The Group has followed the same accounting policies and methods of computation in the financial statements for the current period with those adopted in the most recent audited financial statements for the financial year ended December 31, 2002.

5. If there are any changes in the accounting policies and methods of computation, including any required by an accounting standard, what has changed, as well as the reasons for, and the effect of, the change

6. Earnings per ordinary share of the group for the current period reported on and the corresponding period of the immediately preceding financial year, after deducting any provision for preference dividends

	30/06/2003	30/06/2002
Earnings per ordinary share for the period after deducting any provision for preference dividends:
(a) Based on weighted average number of ordinary shares in issued	(0.24)cents	(0.83)cents
(b) On a fully diluted basis	NA	NA

7. Net asset value (for the issuer and group) per ordinary share based on issued share capital of the issuer at the end of the (a) current period reported on and (b) immediately preceding financial year

	Group		Company
	30/06/2003	31/12/2002	30/06/2003	31/12/2002
Net asset backing per ordinary share based on existing issued share capital as at the end of the period reported on	2.29 cents	2.53 cents	2.79 cents	2.92 cents

8. A review of the performance of the group, to the extent necessary for a reasonable understanding of the group's business. The review must discuss any significant factors that affected the turnover, costs, and earnings of the group for the current financial period reported on, including (where applicable) seasonal or cyclical factors. It must also discuss any material factors that affected the cash flow, working capital, assets or liabilities of the group during the current financial period reported on

Revenue for the first half-year shrank by 12.2% to $29.3m compared to $33.3m in the corresponding period in 2002. This was due mainly to the war in Iraq and the SARS epidemic which caused a significant drop in business for restaurants in Singapore. As a result, our revenue dropped sharply in April 2003. However, cost-cutting measures implemented since April and the divestment of Club Asiana resulted in the net loss after tax and minority interests narrowing to $0.29m in the period under review, compared to a net loss of $0.83m in the first half of 2002.

9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results

10. A commentary at the date of the announcement of the competitive conditions of the industry in which the group operates and any known factors or events that may affect the group in the next reporting period and the next 12 months

In order to improve the financial performance of Imperium, the Group on June 1, 2003 announced that it would concentrate on banquet business only. The management will continue to monitor the performance of Imperium and is taking steps to improve its financial performance. In line with our strategy to minimise capital risks and investments, the Group has stepped up its efforts to secure management contracts with third party restaurants. The Group announced in January 2003 that it had started a management contract with Laguna Country Club to manage its restaurant outlet in the Club. The Group is also exploring the same in the region.

As the economy is showing signs of improvement and barring unforeseen circumstances, the directors expect operating performance to improve in the second half of 2003.

11. Dividend

(a) Current Financial Period Reported On

Any dividend

declared

for the current financial period reported on?

None

(b) Corresponding Period of the Immediately Preceding Financial Year

Any dividend declared for the corresponding period of the immediately preceding financial year?

None

(c) Date payable

(d) Books closure date

Registrable Transfers received by the company up to 5.00 pm on <Enter the date here> will be registered before entitlements to the dividend are determined.

[Give a negative statement if not applicable] NONE

12. If no dividend has been declared/recommended, a statement to that effect

PART II - ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
(This part is not applicable to Q1, Q2, Q3 or Half Year Results)

13. Segmented revenue and results for business or geographical segments (of the group) in the form presented in the issuer's most recently audited annual financial statements, with comparative information for the immediately preceding year

14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments

15. A breakdown of sales

16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year

Total Annual Dividend (

Refer to Para 16 of Appendix 7.2 for the required details

)

	Latest Full Year ()	Previous Full Year ()
Ordinary
Preference	0	0
Total:

BY ORDER OF THE BOARD

ANDREW TJIOE KA MEN
MANAGING DIRECTOR
15/08/2003

Investor Relations

Half Year Financial Statement And Dividend Announcement