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Financials

First Quarter Financial Statement and Dividend Announcement 2017

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 (Loss)/Income

Statement of Profit or Loss

The net other gains was S$0.14 million for 1Q2017 (1Q2016: S$1.37 million) mainly comprise of:

  1. net currency exchange gain of S$0.01 million for 1Q2017 (1Q2016: S$1.97 million); and
  2. net fair value gain on financial assets, at fair value through profit or loss of S$0.11 million for 1Q2017 (1Q2016: net fair value loss of S$0.47 million). The reported fair value (loss)/gain arose from the mark-to-market adjustment of the value of the quoted financial assets, at fair value through profit or loss generating the revaluation (loss)/gain based on market bid prices on the securities held. The quoted financial assets, at fair value through profit or loss comprised of a portfolio of equity investments in companies listed in the Singapore Exchange.

Raw materials and consumables used decreased by S$0.01 million or 48% from S$0.03 million for 1Q2016 to S$0.02 million for 1Q2017 was creditable to improvement of cost management.

Employee benefits decreased by S$0.03 million or 7% from S$0.46 million for 1Q2016 to S$0.43 million for 1Q2017 was mainly attributed to the resignation of a senior management at the Company level.

Other expenses decreased by S$1.40 million, from S$1.94 million for 1Q2016 to S$0.54 million for 1Q2017 was mainly due to decrease in:

  1. administration and professional fees in relation to loan from Wintercrest Advisors, LLC ("Wintercrest Loan") by S$1.20 million (1Q2017: Nil; 1Q2016: S$1.20 million); and
  2. provision for withholding tax expenses by S$0.24 million, (1Q2017: Nil; 1Q2016: S$0.24 million).

Impairment loss on financial assets, available-for-sale of S$3,000 for 1Q2017 (1Q2016: S$5.62 million) was attributed to the repayment of Wintercrest Loan completed on 25 November 2016. The adjustment to impairment losses recognised was due to "significant" or "prolonged" decline in the fair value in 1Q2017 of the equity investments classified as financial assets, available-for-sale.

Finance cost decreased by S$1.20 million, from S$1.20 million in 1Q2016 to S$1,000 in 1Q2017 was due to repayment of Wintercrest Loan completed on 25 November 2016.

Other Comprehensive Loss

Foreign currency translation loss on translating foreign operations of S$0.23 million for 1Q2017 (1Q2016: Foreign currency translation gain of S$0.28 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.

The Group reclassified S$1.38 million of net fair value gain of financial assets, available-for-sale to profit or loss for 1Q2016 as there were "significant" or "prolonged" decline in the fair value in 1Q2016 of the equity investments, classified as financial assets, available-for-sale. No such reclassification were made in 1Q2017.

Commentary on the Statement of Financial Position

Cash and bank balances decreased by S$0.14 million or 28% from S$0.50 million as at 31 December 2016 to S$0.36 million as at 31 March 2017. The decrease was mainly due to purchase of property and equipment for sterilisation segment.

Financial assets, at fair value through profit or loss increased by S$0.11 million or 80% from S$0.13 million as at 31 December 2016 to S$0.24 million as at 31 March 2017. The increase in financial assets, at fair value through profit or loss was mainly due to mark-to-market adjustment of quoted equity shares held with additional net gain of S$0.11 million. Financial assets, at fair value through profit or loss were stated at their fair value based on their quoted bid prices at the end of each reporting period.

Trade and other receivables decreased by S$0.09 million or 14% from S$0.67 million as at 31 December 2016 to S$0.58 million as at 31 March 2017 was mainly due to decrease by S$0.08 million of trade receivables and S$0.01 million of other receivables.

Other current assets increased by S$0.12 million or 31% from S$0.37 million as at 31 December 2016 to S$0.49 million as at 31 March 2017 was mainly due to increase in prepayment of S$0.12 million.

Financial assets, available-for-sale includes quoted equity investment listed on Australian Securities Exchange as at 31 March 2017. The decrease of S$2,000 or 6% from S$0.03 million as at 31 December 2016 to S$0.03 million as at 31 March 2017 was mainly due to allowance of impairment for financial assets, available-for-sale recognised in the profit or loss. Financial assets, available-for-sale were stated at their fair value based on their quoted bid prices at the end of each reporting period.

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.

To-date, the following legal proceeding is still pending:

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.