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Financials

Full Year Results Financial Statement And Related Announcement

Financials Archive

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Profit & Loss

Financials

A statement of comprehensive income (for the group) together with a comparative statement for the corresponding period of the immediately preceding financial year.

Financials

Balance Sheet

Financials

Review commentary on income statement for period ended 31 March 2017

Revenue

The Group registered a revenue amounting to S$57.2 million for the fifteen months financial period ended 31 March 2017 (FY2017) compared to S$53.7 million in the previous corresponding year (FY2015). The increase in revenue of S$3.5 million was due to higher revenue generated from its Taiwan's unit of its Furniture segment. Group revenue would be lower by S$11.3 million if the fin ancial year end remained as 31 December 2016.

Cost of Goods Sold and Gross Profit

Cost of sales remained flat at S$32.7 million despite an increase in revenue. This resulted in our gross profit to improve by 14.2% or S$3 million in FY2017 compared to FY2015. Cost of sales would be S$7.4 million lower and gross profit S$3.9 million lower if there was no change to its financial year.

Other Operating Income

Other operating income increased by S$4.7 million from S$2.0 million in FY2015 to S$6.7 million in FY2017. The increase was mainly due to higher rental income and sundry in come and the write back of allowance for doubtful debts and slow moving inventories of S$1.2 million and S$1.0 million respectively.

Administrative Expense

Administrative expense increased by S$0.4 million or 1.65 percent compared to S$23.0 million in FY2015. This was due to expenses incurred for an additional three (3) months in the period under review. Administrative expense would be S$4 million lower if there was no change in financial year end. The decrease was mainly due to reduction of salary related expenses.

Distribution and Marketing Costs

Distribution and Marketing cost decreased from S$6.3 million in FY2015 to S$4.2 million in FY2017. The decrease arose mainly from reduction of advertisement and promotion expense offset by the incurrence of an additional three months expenses. The decrease would amount to S$2.3 million if there was no change to the financial year end.

Other Operating Expenses

Other operating expense decreased by S$7.1 million from S$11.4 million in FY2015 to S$4.2 million in FY2017. This was mainly attributable to the provision for refundable deposit of S$2.8 million and provision for doubtful debts of S$2.6 million and higher provision for slow-moving inventories of S$1.3 million made in FY2015.

Finance Costs

Finance cost increase by S$0.3 million compared to S$0.9 million in FY2015. The increase was due to additional interest expense incurred for an additional three months in FY2017. It remained flat if there was no change to the financial year end.

Taxation

Income tax expense of the Group decreased by S$0.2 million from S$0.7 million in FY2015 to S$0.5 million in FY2017. This was attributable mainly to lower taxes provided owing to loss generated.

Loss for the Period

The Group reported a lower loss of $2.2 million in FY2017 compared to S$18.8 million in FY2015. The improvement was due to lower distribution and marketing costs, other operating expenses and income tax expense. Loss for the period would be S$6.8 million if the Group did not change its financial year end.

Balance Sheet

Non-Current Assets

Non-currrent assets of the Group decreased by S$3.6 million from S$22.8 million at 31 December 2015 to S$19.2 million at 31 March 2017. This was mainly attributable to depreciation charges of property, plant and equipment and amortisation charges of land use rights.

Current Assets

The Group's reported current assets amounting to approximately S$30.4 million as at 31 March 2017. (31 December 2015: S$28.3 million). The increase was mainly due to increase in trade and other receivables offset by a reduction of inventories.

The increase in trade and other receivables was due to sales generated during the year end. The lower inventories was due to reduction in raw materials.

Non-Current liabilities

The Group's non-current liabilities stood at S$0.4 million at 31 March 2017 (31 December 2015: S$0.6 million). The decrease was due to repayment of long term borrowings.

Current liabilities

The Group's current liabilities position decreased by S$1.8 million from S$34.9 million as at 31 December 2015 to S$33.1 million as at 31 March 2017. The decrease was mainly attributable to a reduction in borrowings of S$6 million offset by an increase of trade and other payables of S$4.1 million.

Capital and Reserves

As at 31 March 2017, the Group had shareholders' equity of S$16.1 million compared to S$15.6 million at 31 December 2015. This was due to increase of share capital via placement shares during the period offset by increase in accumulated loss and exchange translation loss.

Cash flow Statement

Net cash used in operating activities was S$0.9 million in FY2017 compared to S$1.2 million in FY2015. This was due to decrease in inventories of S$4.9 million, increase in trade and other payables of S$0.8 million offset by increase in trade and other receivables or 5$6.3 million and lower income tax paid.

Net cash flow generated from investing activities as approximately S$0.02 million, as a result of proceeds from disposal of property, plant and equipment amounting to S$0.4 million offset by acquisition of property, plant and equipment of S$0.38 million and Interest received of S$0.04 million.

Net cash flow generated from financing activities was S$3.4 million compared to net cash flow used in financing activites of S$4.0 million in FY 2015. This arose from proceed from issue of shares amounting to S$3.4 million, loan from directors of S$3.3 million offset by repayment of trust receipts and bills payable and finance lease liabilities of S$3.1 million and S$0.4 million respectively.

Cash and cash equivalents increased by S$2.5 million mainly as a results of net cash generated from financing activities.

Commentary

The Group will continue to face the challenges of weak demand for furniture in both Malaysia and Singapore as a result of lower consumer demand and weak demand in residential property respectively.

The Group will manage the business challenges by exploring new opportunities to improve its future income stream and reduce its overall cost and expenses.