Investors / Newsroom
News

Full Year Financial Statement And Dividend Announcement For The Period Ended 31/12/2003

BackFeb 20, 2004
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
      2003
      2002
      $'000
      $'000
      Revenue
      60,907
      64,422
      Cost of sales
      (17,912)
      (18,845)
      Gross profit
      42,995
      45,577
      Other operating income
      223
      184
      Staff costs
      (17,559)
      (18,132)
      Administrative expenses
      (3,019)
      (3,376)
      Other operating expenses
      (20,467)
      (25,765)
      Profit/(loss) from operations
      2,173
      (1,512)
      Finance cost
      (212)
      (248)
      Profit/(loss) before income tax and share of loss in joint venture
      1,961
      (1,760)
      Share of loss in joint venture
      (505)
      (2,114)
      1,456
      (3,874)
      Income tax expense
      (500)
      (410)
      Profit/(loss) after income tax
      956
      (4,284)
      Minority interest
      (24)
      (192)
      Profit/(loss) for the year
      932
      (4,476)
      Additional information for Income Statement above:
      Group
      2003
      2002
      $'000
      $'000
      Other income including interest income
      (223)
      (184)
      Interest on borrowings
      212
      248
      Depreciation and amortisation
      2,217
      2,644
      Loss on disposal of property, plant and equipment
      17
      45
      Loss on disposal of a subsidiary
      23
      -




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
2003
2002
2003
2002
$'000
$'000
$'000
$'000
ASSETS
Current assets:
Cash and bank balances
4,137
3,832
23
168
Trade receivables
1,988
1,677
-
-
Other receivables
450
336
386
2,276
Inventories
1,100
1,281
-
-
Total current assets
7,675
7,126
409
2,444
Non-current assets:
Subsidiaries
-
-
1,797
1,797
Joint venture
(1,020)
(515)
-
1,000
Property, plant and equipment
9,120
10,727
-
-
Long-term receivables
2,604
1,808
1,250
504
Total non-current assets
10,704
12,020
3,047
3,301
Total assets
18,379
19,146
3,456
5,745
LIABILITIES AND EQUITY
Current liabilities:
Bank overdrafts
72
398
-
-
Trade payables
5,011
4,015
-
-
Other payables
4,977
5,960
1,120
2,230
Current portion of finance leases
210
604
-
-
Term loans
380
1,256
-
-
Income tax payable
391
271
17
7
Total current liabilities
11,041
12,504
1,137
2,237
Non-current liabilities:
Finance leases
56
266
-
-
Long-term loans
1,948
2,292
-
-
Deferred income tax
841
485
-
-
Total non-current liabilities
2,845
3,043
-
-
Minority interests
527
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
(3,629)
(4,561)
(5,276)
(4,087)
Total equity
3,966
3,034
2,319
3,508
Total liabilities and equity
18,379
19,146
3,456
5,745




1(b)(ii) Aggregate amount of group's borrowings and debt securities.
      Amount repayable in one year or less, or on demand
      As at 31/12/2003
      As at 31/12/2002
      Secured
      Unsecured
      Secured
      Unsecured
      $283,000
      $307,000
      $679,000
      $1,181,000


      Amount repayable after one year
      As at 31/12/2003
      As at 31/12/2002
      Secured
      Unsecured
      Secured
      Unsecured
      $1,809,000
      $195,000
      $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.

2003
2002
$'000
$'000
Cash flows from operating activities
Profit/(loss) before income tax and share of loss in joint venture
1,961
(1,760)
Adjustments for:
Depreciation expense
2,217
2,435
Amortisation of goodwill
-
209
Impairment of property, plant and equipment
-
2,086
Impairment of goodwill
-
794
Interest income
(1)
(31)
Interest expense
212
248
Loss on disposal of a subsidiary
23
-
Loss on disposal of property, plant and equipment
17
45
Operating profit before working capital changes
4,429
4,026
Trade receivables
(336)
205
Other receivables, deposits and prepayments
(912)
1,081
Inventories
156
(323)
Trade payables
1,450
(632)
Other payables
2,738
(2,159)
Cash generated from operations
7,525
2,198
Interest paid
(212)
(248)
Interest received
1
31
Income tax paid
(24)
(19)
Net cash from operating activities
7,290
1,962
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment
17
38
Purchase of property, plant and equipment
(693)
(3,597)
Acquisition of subsidiary
-
(156)
Investment in joint venture
-
(1,000)
Grant
49
-
Cash outflow from disposal of a subsidiary
(4,403)
-
Minority interest
(62)
(91)
Net cash used in investing activities
(5,092)
(4,806)
Cash flows from financing activities
Net (repayments)/proceeds from bank loans
(1,116)
160
Repayments of obligations under finance leases
(451)
(621)
Proceeds from issuing shares
-
2,240
Share issue expenses
-
(72)
Net cash used in financing activities
(1,567)
1,707
Net increase /(decrease) in cash
631
(1,137)
Net cash at beginning of year
3,434
4,571
Net cash at end of year
4,065
3,434
Summary of the effects of acquisition of a subsidiary
2003
2002
$'000
$'000
Net assets acquired:
Cash and bank balances
-
8
Trade receivables
-
65
Others receivables, deposits and prepayment
-
188
Inventories
-
101
Property,plant and equipment
-
1,655
Trade payables
-
(932)
Others payables
-
(1,962)
Bank overdraft
-
(84)
Term loans
-
(312)
Finance leases
-
(385)
Net liabilities acquired
-
(1,658)
Goodwill on consolidation
-
826
-
(832)
Share of joint venture
-
912
Total purchase consideration
-
80
Overdraft on acquisition of a subsidiary
-
76
Cash outflow arising on acquisition of a subsidiary
-
156
Summary of the effects of disposal of a subsidiary
2003
2002
$'000
$'000
Cash and bank balances
24
-
Trade receivables
25
-
Others receivables
2
-
Inventory
25
-
Trade payables
(454)
-
Others payables
(3,721)
-
Term loans
(104)
-
Finance leases
(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)/profits
      Total
      $'000
      $'000
      $'000
      $'000
      Balance as at January 1, 2002
      2,500
      2,927
      (84)
      5,343
      Private placement of share
      500
      1,740
      -
      2,240
      Private share placement expenses
      -
      (72)
      -
      (72)
      Net loss for the year
      -
      -
      (4,477)
      (4,477)
      Balance as at December 31, 2002
      3,000
      4,595
      (4,561)
      3,034
      Net profit for the year
      -
      -
      932
      932
      Balance as at December 31, 2003
      3,000
      4,595
      (3,629)
      3,966
      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
      Private placement of share
      500
      1,740
      -
      2,240
      Private share placement expenses
      -
      (72)
      -
      (72)
      Net loss for the year
      -
      -
      (3,715)
      (3,715)
      Balance as at December 31, 2002
      3,000
      4,595
      (4,087)
      3,508
      Net loss for the year
      -
      -
      (1,189)
      (1,189)
      Balance as at December 31, 2003
      3,000
      4,595
      (5,276)
      2,319


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 for 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 auditing standard or practice.
      The figures have not been audited or reviewed by our auditors.


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


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 applied the same accounting policies and methods of computation as in the most recently audited financial statements.


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.
      NA


6. Earnings per ordinary share of the group for the current financial period reported
      on and the corresponding period of the immediately preceding financial year,
      after deducting any provision for preference dividends.
      31/12/2003
      31/12/2002
      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
      0.78cents
      (4.37)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 financial period reported on; and
      (b) immediately preceding financial year.

      Group
      Company
      31/12/2003
      31/12/2002
      31/12/2003
      31/12/2002
      Net asset backing per ordinary share based on existing issued share capital as at the end of the period reported on
      3.31 cents
      2.53 cents
      1.93 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. It must include a discussion of the
      following:-

      (a) 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; and

      (b) 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 financial year ended 31 December 2003 was S$61 million compared to S$64 million in the previous financial year. The reduction in revenue was mainly due to the disposal of Club Asiana in April 2003, Iraqi war and SARS epidemic.

With the reduction in revenue, the Group embarked on cost reduction measures by reducing payroll costs, negotiating rental rebates, and streamlining various outlets.

As a result of these actions, the Group achieved a net profit after tax and minority interest of $0.9 million, compared to a corresponding loss of $4.5m in the previous year. Earnings per share rose to 0.8 cents from a loss of 4.4 cents in 2002.


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


10. A commentary at the date of the announcement of the significant trends and
      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.

With the improvement of the Singapore economy in 2004, the Group expects our revenue to increase.

The Group is introducing new cuisines into Singapore by entering into a joint venture with a China partner. Further, the Group is exploring the expansion of business into China.

Barring unforeseen circumstances, the directors expect financial performance to improve in 2004.


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

      The date <Enter the date here> the dividend is 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.

      [If not applicable, to say so]


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



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.
      The Group operates in Singapore and in one main line of business, being that of restaurant business. Therefore, the requirement on the disclosure of the information relating to the product or business activity and geographical segments of the operations is not applicable.


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.
      NA


15. A breakdown of sales.

      Latest Financial Year
      Previous Financial Year
      % increase/
      (decrease)
      $'000
      $'000
      Group
      Group
      (a) Sales reported first half year
      29,279
      33,339
      (12.18%)
      (b) Operating profit/loss after tax before deducting minority interests reported for first half year
      (347)
      (754)
      53.98%
      (c) Sales reported for second half year
      31,628
      31,083
      1.75%
      (d) Operating profit/loss after tax before deducting minority interests reported for second half year
      1,303
      (3,530)
      136.91%


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
20/02/2004