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Financials

First Quarter Financial Statement and Dividend Announcement 2018

Financials Archive

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Consolidated statement of comprehensive (loss)/income (for the Group) together with a comparative statement for the corresponding period of the immediately preceding financial year.

Financials

Balance Sheet

Financials

Review of Performance

Commentary on the Consolidated Statement of Profit or Loss and Other Comprehensive Income/(Loss)

Statement of Profit or Loss

The net other gains increased by S$0.87 million from S$0.14 million for 1Q2017 to S$1.009 million for 1Q2018, as a result of the gain on dissolution of a dormant subsidiary, Powerlite Ventures Limited ("Powerlite"), which amounted to S$0.88 million in 1Q2018 (1Q2017: Nil). Powerlite was dissolved on 26 March 2018.

Employee benefits increased by S$0.04 million or 10% from S$0.43 million for 1Q2017 to S$0.47 million for 1Q2018, mainly due to increase in headcount at the Company level, as compared to 1Q2017.

Other expenses decreased by S$0.14 million or 26%, from S$0.54 million for 1Q2017 to S$0.40 million for 1Q2018, mainly due to decrease in:

  1. professional fees by S$0.05 million (1Q2018: S$0.01 million ; 1Q2017: S$0.06 million); and
  2. upkeep expenses by S$0.06 million, (1Q2018: S$0.03 million; 1Q2017: S$0.09 million) as a result of cost-cutting measures implemented by the Group.

Allowance for impairment loss on financial assets, available-for-sale of S$175 for 1Q2018 (1Q2017: S$3,000) pertains to adjustment to impairment losses recognised due to "significant" or "prolonged" decline in the fair value of the equity investments classified as financial assets, available-for-sale.

Finance cost increased by S$49,000, from S$1,000 in 1Q2017 to S$50,000 in 1Q2018, mainly due to interest charged for bank loans and shareholder's loan in 1Q2018, which was drawn down in 4Q2017.

Other Comprehensive Income

Foreign currency translation loss on translating foreign operations of S$1.85 million for 1Q2018 (1Q2017: S$0.23 million) relates to the translation of the results and the net assets of the Group's foreign operations from their functional currencies to the Group's presentation currency in accordance with FRS 21 The Effects of Changes in Foreign Exchange Rate.

In 1Q2018, the Group reclassified foreign translation of S$0.88 million (1Q2017: Nil) resulting from dissolution of a dormant subsidiary to profit or loss in accordance with FRS 21 The Effects of Changes in Foreign Exchange Rate.

Commentary on the Statement of Financial Position

Cash and bank balances increased by S$0.22 million or 24% from S$0.93 million as at 31 December 2017 to S$1.15 million as at 31 March 2018, mainly due to draw down of shareholder's bridging loan amounting to S$0.70 million, offset with payment of IRAS withholding tax of S$0.30 million and purchase of property and equipment of S$0.18 million.

Other current assets decreased by S$0.64 million or 65% from S$0.99 million as at 31 December 2017 to S$0.35 million as at 31 March 2018, mainly due capitalisation of prepayment for acquisition of cobalt.

Property and equipment increased by S$0.63 million or 15% from S$4.27 million as at 31 December 2017 to S$4.90 million as at 31 March 2018, mainly due to purchase and capitalisation of cobalt for the Group.

Current and non-current borrowings increased by S$0.61 million or 21% from S$2.88 million as at 31 December 2017 to S$3.49 million as at 31 March 2018, mainly due to draw down of shareholder's bridging loan amounting to S$0.70 million during the period, offset by repayment of bank borrowings amounting to S$0.09 million during the period.

The increase of reserves by S$0.95 million or 21% was attributed to foreign currency translation loss of $1.85 million on translation of foreign operations, offset by foreign currency translation reclassified to to profit or loss of S$0.88 million on dissolution of a dormant subsidiary.

Commentary

The performance of the sterilisation segment of the Group has been consistent. Barring any unforeseen circumstances, we do not expect any substantial variation in its performance.

The Group's investment holding segment including quoted equity investment classified as the portfolio of quoted financial assets, available-for-sale, including the portfolio under the mineral and energy resources ties to the changes in the financial market and global economy with uncertainty and volatility in the investment outlook. The mineral and energy resources segment is a highly risky business and requires time, effort, investment and development.

Below are updates on the Group's operations:

Entry into term sheet

On 29 March 2018, the Company announced that it had on 29 March 2018, entered into a term sheet with Asaro Federico (the "Vendor" and together with the Company, the "Parties") in respect of a proposed potential acquisition of 100 ordinary shares, representing the entire issued and paid-up capital of Samadhi Retreats Pte. Ltd. for an aggregate consideration which shall not exceed the amount of S$43.8 million (the "Potential Acquisition") (the "Term Sheet").

The Term Sheet is binding as to the commercial terms set out therein, subject to negotiation and execution of: (a) a sale and purchase agreement in respect of the Potential Acquisition; and (b) any other ancillary agreements as may be required arising out of or in connection with the Potential Acquisition, (collectively, the "Definitive Agreements") in the form and substance satisfactory to the Parties.

The Potential Acquisition, if proceeded with, will diversify the Group's current portfolio, reduce the Group's reliance on its existing business and provide the Company with potential additional revenue streams, all of which would improve the Group's future prospects for long term growth and enhance shareholder value.

The Company will make such further announcements at the appropriate juncture, upon the execution of the Definitive Agreements and as and when there are material developments in relation to the Potential Acquisition, including all relevant information as may be required pursuant to Chapter 10 of the Listing Manual.

Updates on Legal Proceeding in relation to Raintree Rock Sdn Bhd ("Raintree")

On 26 April 2016, the Company announced via SGXNET that Raintree, a wholly owned subsidiary of Blumont Group Ltd., had been notified that it had on 22 April 2016, been served with a writ of summons and state of claim filed in the high court of Malaya in Kuala Lumpur to take steps to effect rectification of the strata title to the property, an order for specific performance by Raintree, subject to the Court varying certain terms of the Agreement dated 15 September 2015 for the sale of a property in Kuala Lumpur, including the purchase price, or, in lieu of specific performance, a refund of deposits paid by the Plaintiffs, together with liquidated damages of RM600,000 and damages for misrepresentation.

The Group is currently seeking legal advice and will, in consultation with its solicitors, take such necessary steps to defend the Legal Proceedings. The Group reserves all its rights on the matter. The Company will disclose any updates or further information on the legal proceedings when it is appropriate to do so.