AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D) Page 1 of 22 Unaudited Full Year Financial Statements and Dividend Announcement for the Year Ended 31 December 2009 PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF- YEAR AND FULL YEAR RESULTS 1(a)(i) An income statement (for the group) together with a comparative statement for the corresponding period of the immediately preceding period. Consolidated Statement of Comprehensive Income 2009 2008 Change 2009 2008 Change (Restated) (Restated) Note S$’000 S$’000 +/(-)% S$’000 S$’000 +/(-)% Revenue 100,576 127,569 (21.2) 405,964 419,603 (3.3) Cost of revenue (63,889) (87,771) (27.2) (252,970) (280,827) (9.9) Gross profit 36,687 39,798 (7.8) 152,994 138,776 10.2 Other revenue 756 295 156.3 4,097 1,064 285.1 Selling and marketing expenses (19,813) (22,966) (13.7) (68,804) (68,407) 0.6 General and administration expenses (6,638) (14,984) (55.7) (29,550) (40,799) (27.6) Other operating expenses (13,747) (16,994) (19.1) (63,843) (50,863) 25.5 Investment related activities 780 (18,107) n.m. 4,403 (17,266) n.m. Finance costs (183) (365) (49.9) (1,172) (4,802) (75.6) Share of results of associated companies (62) (2,098) (97.0) (200) (1,990) (89.9) Share of results of a joint venture company 140 97 44.3 397 306 29.7 Loss before taxation 1 (2,080) (35,324) (94.1) (1,678) (43,981) (96.2) Income tax expense 2 676 409 65.3 (419) (1,384) (69.7) Loss net of taxation (1,404) (34,915) (96.0) (2,097) (45,365) (95.4) - - DISCONTINUED OPERATIONS Profit from discontinued operations, net of tax 1-2 - - - - 10,954 n.m. Loss net of taxation (1,404) (34,915) (96.0) (2,097) (34,411) (93.9) Other comprehensive (expenses)/income: Foreign currency translation (122) 321 n.m. (298) (215) 38.6 Share of other comprehensive expenses of associated companies - (1) n.m. - (3,566) n.m. Other comprehensive (expenses)/income for the financial period/year, net of taxation (122) 320 n.m. (298) (3,781) (92.1) Total comprehensive expenses for the financial period/year (1,526) (34,595) (95.6) (2,395) (38,192) (93.7) (Loss)/profit attributable to: Owners of the Company (1,661) (35,282) (95.3) (3,405) (33,763) (89.9) Minority interests ("MI") 257 367 (30.0) 1,308 (648) n.m. (1,404) (34,915) (96.0) (2,097) (34,411) (93.9) Total comprehensive (expenses)/income attributable to: Owners of the Company (1,847) (34,920) (94.7) (3,635) (36,086) (89.9) Minority interests ("MI") 321 325 (1.2) 1,240 (2,106) n.m. (1,526) (34,595) (95.6) (2,395) (38,192) (93.7) n.m. = not meaningful GROUP 4th Quarter Ended 31 December Full Year Ended 31 December
Transcript
AURIC PACIFIC GROUP LIMITED
(Co. Reg. No. 198802981D)
Page 1 of 22
Unaudited Full Year Financial Statements and Dividend Announcement for the Year Ended 31 December 2009
PART I - INFORMATION REQUIRED FOR ANNOUNCEMENTS OF QUARTERLY (Q1, Q2 & Q3), HALF-
YEAR AND FULL YEAR RESULTS 1(a)(i) An income statement (for the group) together with a comparative statement for the
corresponding period of the immediately preceding period.
Share of results of associated companies (62) (2,098) (97.0) (200) (1,990) (89.9)
Share of results of a joint venture company 140 97 44.3 397 306 29.7
Loss before taxation 1 (2,080) (35,324) (94.1) (1,678) (43,981) (96.2)
Income tax expense 2 676 409 65.3 (419) (1,384) (69.7)Loss net of taxation (1,404) (34,915) (96.0) (2,097) (45,365) (95.4)
- -
DISCONTINUED OPERATIONSProfit from discontinued operations, net of tax 1-2 - - - - 10,954 n.m.Loss net of taxation (1,404) (34,915) (96.0) (2,097) (34,411) (93.9)
Write-back of provision for long outstanding creditors 259 - n.m 259 - n.m.Allowance for impairment on trade debtors (470) (780) (39.7) (1,024) (898) 14.0
Stocks recognised as an expense in cost of sales (1,923) (2,689) (28.5) (3,110) (4,500) (30.9)
Amortisation of intangible assets included in share of results of associated companies - - - - (507) n.m.
Depreciation of property, plant and equipment (2,752) (2,823) (2.5) (10,273) (8,470) 21.3Property, plant and equipment written off (979) (607) 61.3 (1,366) (1,354) 0.9
Write-back / (allowance for impairment loss) onproperty, plant and equipment (536) (3) n.m. 100 (24) n.m.
Gain/(loss) on disposal of property, plant and equipment 265 (287) n.m. 207 (286) n.m.
Fair value changes of financial instruments :- Gain / (loss) on investment funds at fair value
through profit or loss 566 (15,403) n.m. 308 (8,437) n.m.
- (Loss) / gain on investment securitiesheld-for-trading (290) (1,895) (84.7) 1,107 (7,947) n.m.
Finance costs on borrowings (183) (365) (49.9) (1,172) (5,007) (76.6)
Gain on derivative financial instrument at fair value through profit or loss - 144 n.m. 191 85 124.7Net foreign exchange (loss) / gain (180) 491 n.m. (612) 1,047 n.m.
Net fair value (loss)/gain on investment properties - (485) n.m. 500 13,220 (96.2)Loss on disposal of investment securities - (1,761) n.m. - (960) n.m.
Write-back / (allowance for impairment loss) on unquoted
equity shares 520 (262) n.m. 349 (262) n.m.Loss on disposal of an investment property - - - (79) - n.m.
Impairment loss on goodwill on consolidation - (5,800) n.m. - (5,800) n.m.Impairment loss included in share of results of
associated companies - (2,006) n.m. - (2,006) n.m.Gain on acquisition on minority interests - - - 2,062 - n.m.
Amortisation of intangible assets (701) (1,802) (61.1) (2,874) (1,833) 56.8Loss on disposal of an associated company - - - - (2,511) n.m.
- (212) n.m. - (212) n.m.Gain/(loss) on disposal of subsidiary companies 12 - n.m. (1,073) - n.m.Loss on liquidation of a subsidiary company - - - (634) - n.m.
n.m. = not meaningful
GROUP
4th Quarter Ended 31 December Full Year Ended 31 December
Loss on dilution of interest in a subsidiary company
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 3 of 22
Note (2) Major components of income tax expense for the period/year ended 31 December were:
2009 2008 Change 2009 2008 Change
S$’000 S$’000 +/(-)% S$’000 S$’000 +/(-)%
Income tax expenses from continuing operations 676 409 65.3 (419) (1,384) (69.7)
Income tax expenses from discontinued operations - - - - (2,782) n.m.
Total income tax expenses #
676 409 65.3 (419) (4,166) (89.9)
# The charge for taxation comprised the following:
On the results for the financial year : Current income taxation (485) (1,069) (54.6) (3,242) (13,648) (76.2) Deferred income taxation 395 2,554 (84.5) 926 10,602 (91.3)
In respect of prior years : Current income taxation 1,322 (1,074) n.m. 2,230 (1,118) n.m.
Deferred income taxation (556) (2) n.m. (556) (2) n.m. Effect of reduction in tax rate - - - 223 - n.m.
676 409 65.3 (419) (4,166) (89.9)
n.m. = not meaningful
GROUP
4th Quarter Ended 31 December Full Year Ended 31 December
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 4 of 22
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. Statement of Financial Position
As at 31
December
2009
As at 31
December
2008
As at 31
December
2009
As at 31
December
2008
(Restated)
Note S$’000 S$’000 S$’000 S$’000
ASSETS
Non-current assets
Property, plant and equipment 35,125 40,128 667 558
Investment in a joint venture company 901 759 - - Investments in subsidiary companies - - 66,941 66,941
Investments in associated companies 1,463 1,663 - - Goodwill on consolidation X 26,305 29,760 - -
Trade debtors 51,458 50,790 606 1,068 Other debtors, prepayments and other recoverables 35,313 18,552 18,595 164 Amounts due from subsidiary companies - - 192,771 193,300
Fixed deposits 25,986 66,415 14,592 55,936 Cash and bank balances 33,191 22,432 5,684 5,606
193,198 205,131 232,248 256,074
Total assets 362,793 393,814 299,856 323,573
EQUITY AND LIABILITIES
Current liabilities
Bank borrowings Y (19,260) (27,150) (13,196) (24,644) Trade creditors (39,049) (45,764) - -
Other creditors and accruals (35,103) (38,751) (1,383) (2,088) Short-term provisions (951) (1,055) - - Obligations under finance leases Y (160) (657) - - Amounts due to subsidiary companies - - (172,079) (190,601)
Tax payable (18,443) (20,336) - -
(112,966) (133,713) (186,658) (217,333)
Net current assets 80,232 71,418 45,590 38,741
Non-current liabilities
Long-term provisions (1,532) (1,920) (100) (100)
Deferred tax liabilities (5,927) (6,912) - - Other creditors and accruals (287) (2,263) - -
Obligations under finance leases Y (34) (142) - - (7,780) (11,237) (100) (100)
Total liabilities (120,746) (144,950) (186,758) (217,433) Net assets 242,047 248,864 113,098 106,140
GROUP COMPANY
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
Total equity and liabilities 362,793 393,814 299,856 323,573
COMPANYGROUP
Note (X)
(i) On 15 September 2008, the Group completed its acquisition of an additional 24.5% effective interest in Food Junction Holdings Ltd (“FJH”) which was previously an associated company with 29.9% effective interest held. Upon that acquisition, FJH became a subsidiary of the Group. In May 2009, the purchase price allocation ("PPA") exercise was completed. The Group's comparative figures in the balance sheet as at 31 December 2008 have been restated to reflect the finalised fair values and PPA adjustments as summarised below. These adjustments were accounted for as if they had been recognised on acquisition date. The financial impact to the financial statements for the financial year ended 31 December 2008 ("FY 2008") is to increase retained earnings by $6,000.
In connection with the finalisation of PPA, the Group has also recognised the dilution of the Group's equity interest in FJH from FJH's issuance of ordinary shares to acquire Malones Holdings Pte Ltd on 1 October 2008 (Please refer to the Group's 2008 Annual Report for details of the transaction). The Group has recorded an additional loss of approximately $205,000 from the dilution effect to the FY 2008 retained earnings.
(ii) On 1 October 2008, FJH completed the acquisition of a 100% equity interest in Malones Holdings Pte Ltd and the PPA exercise was completed in June 2009. The finalisation of PPA has no financial impact on the FY2008 Group's financial statements. Accordingly, the Group's comparative figures in the balance sheet as at 31 December 2008 were restated to reflect the finalised fair values and PPA adjustments as summarised below. There is no financial impact to the Group's financial results in FY 2008.
(iii) In Q4 2009, FJH management was of the view that it is highly unlikely that Malones Holdings Pte Ltd
and its subsidiaries would be able to achieve the profit targets set in the Sales and Purchase agreement. This meant that it would be unlikely that the deferred cash consideration will be paid. Accordingly, the Group made the necessary adjustments to goodwill in intangible assets for Q4 2009 and FY2009.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 6 of 22
1(b)(ii) Aggregate amount of group’s borrowings and debt securities.
Note
As at 31
December
2009
As at 31
December
2008
S$’000 S$’000
Repayable within one year (unsecured) - 2,506 Repayable within one year (secured) Y 19,420 25,301
Repayable after one year (secured) Y 34 142 19,454 27,949
GROUP
Note (Y)
As at 31 December 2009 and 31 December 2008, the bank borrowings were secured by a legal mortgage over leasehold land and factory buildings, fixed and floating charge on all assets of certain subsidiary companies, and joint corporate guarantees of other subsidiary companies. The finance lease liabilities were secured by the related leased assets as at 31 December 2009 and 31 December 2008.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 7 of 22
1(c) A cash flow statement (for the group), together with a comparative statement for the
corresponding period of the immediately preceding financial period. Consolidated Statement of Cash Flows
2009 2008(Restated)
S$’000 S$’000
Cashflow from operating activities
Loss from continuing operations before taxation (1,678) (43,981)
- 13,736 Loss before taxation (1,678) (30,245)
Adjustments for:
Dividend income (207) (440) Interest income (363) (1,077)
Interest expense 1,172 5,007 Share of results of associated companies 200 (465)
Share of results of a joint venture company (397) (306)
(1,273) (27,526) 1,024 898
(2) 81
3,110 4,500 Amortisation of intangible assets 2,874 1,833
Impairment loss on goodwill on consolidation - 5,800 (Write-back)/provision for performance incentive management fee (1,655) 1,506
Write-back of provision for long outstanding creditors (259) - Loss on disposal of an associated company - 2,511 Loss on disposal of subsidiary companies 1,073 - Loss on liquidation of a subsidiary company 634 - Depreciation of property, plant and equipment 10,273 8,470
(191) (85)
(100) 24 Net fair value gain on investment properties (500) (13,220)
Fair value changes of financial instruments :
- (Gain) / loss on investment funds at fair value through profit or loss (308) 8,437
(1,107) 7,947 Loss on disposal of investment securities - 960
(349) 262 Property, plant and equipment written off 1,366 1,354
Net (gain) / loss on disposal of property, plant and equipment (207) 286
- 212
Loss on disposal of an investment property 79 -
Gain on acquisition on minority interests (2,062) -
Translation differences 388 (1,121) 12,808 3,129
(Increase)/decrease in assets:Stocks (2,018) (6,576)
Trade and other debtors (18,413) 1,334
Fixed deposits pledged with the banks 108 - Increase/(decrease) in liabilities:
Trade and other creditors (6,376) (4,283)
(13,891) (6,396) Tax paid (2,435) (5,533)
Interest received 363 806 Interest paid (1,172) (5,007)
(17,135) (16,130)
Gain on derivative financial instrument at fair value through profit or loss
equity shares
(Write-back)/impairment loss on property, plant and equipment
Net cash used in operating activities
Net cash used in operations
(Write-back)/allowance for impairment loss on unquoted
Allowance for impairment on trade debtors
(Write-back)/allowance for impairment on non-trade debtors
- (Gain) / loss on investment securities held-for-trading
Loss on dilution of interest in a subsidiary company
Year Ended 31 December
Operating cash flows before working capital changes
GROUP
Profit from discontinuing operations before taxation
Stocks recognised as an expense in cost of sales
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 8 of 22
Consolidated Statement of Cash Flows (continued)
2009 2008(Restated)
S$’000 S$’000
Cashflow from investing activities
Acquisition of minority interests (1,903) -
Acquisition of a subsidiary company (Note 1) - (2,442)
Disposal of subsidiary companies (Note 2) (376) -
Dividend income received 207 440
Dividends from associated companies 255 3,296
Investments in associated companies - (4,452)
559 24
Proceeds on disposal of an investment property 5,921 99,020
Proceeds on disposal of investment securities - 26,944
- 185,583
Proceeds from disposal of investment funds 14 -
102 237
Purchase of property, plant and equipment (7,514) (8,409)
Purchase of investment funds (600) (2,734)
Purchase of investment securities - (28,994)
Reinvestment of investment funds (15) -
(3,350) 268,513
Cashflow from financing activities
Repayment of obligations under finance leases (597) (764)
Redemption of notes payable - (30,000)
- (7,771)
Proceeds from bank borrowings 18,941 82,019
Repayment of bank borrowings (26,800) (234,073)
- (8,796)
(457) -
(8,913) (199,385)
(29,398) 52,998
Cash and cash equivalents at beginning of year 88,740 35,674
Effect of exchange rate changes on cash and cash equivalents held in foreign currencies (165) 68
59,177 88,740
Proceeds from return of capital from investment funds
Net (decrease)/increase in cash and cash equivalents
Proceeds on disposal of an associated company
Dividends paid to minority shareholders by a subsidiary company
Net cash (used in)/generated from investing activities
GROUP
Year Ended 31 December
Repayment of loan from minority shareholder of a subsidiary company
Proceeds on disposal of property, plant and equipment
Dividends paid to equity holders of the Company
Net cash used in financing activities
Cash and cash equivalents at end of year (Note 3)
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 9 of 22
Consolidated Statement of Cash Flows (continued)
Note 1 The fair values of assets acquired and liabilities assumed from the acquisition of subsidiary companies and the cash flow effects of the acquisition were as follows :-
Cash flow arising from acquisition of subsidiary companies
Reclassification from associated company to subsidiary company
Cash flow arising on acquisition, net of cash acquired
Deferred cash settlement for subsidiary companies acquired
Less: cash and cash equivalents in subsidiary companies acquired
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 10 of 22
Note 2 The net assets and liabilities arising from the disposal of subsidiary companies and the cash flow effects of the disposal and dilution were as follows:-
Year Ended
31 December
2009
S$’000
Total assets 1,647 Total liabilities (1,261)Net assets disposed 386
Foreign currency translation reserve gain realised (348)Goodwill on consolidation 1,131 Net loss on disposal of subsidiary companies (1,073)
Total consideration 96 Cash and bank balances of subsidiary companies disposed (472)Cash outflow arising from disposal of subsidiary companies (376)
Note 3 Analysis of balances of cash and cash equivalents as shown on the balance sheet:
As at 31
December
2009
As at 31
December
2008
S$’000 S$’000
Fixed deposits (restricted) 623 731
Fixed deposits (current) 25,986 66,308 Cash and bank balances 33,191 22,432
59,800 89,471
Fixed deposits pledged with the bank [Note (a)] (623) (731) 59,177 88,740
Note (a) This is pledged to banks as security for banker's guarantees issued in lieu of rental deposits.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 11 of 22
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 period.
Statements of changes in equity
The Group
Share capital
Foreign currency translation reserve
Fair value reserve
Retained earnings
Total equity attributable to owners of the
parent
S$'000 S$'000 S$'000 S$'000 S$'000 S$'000 S$'000
2009
Balance at 1 January 2009, as previously reported 64,461 (101) - 157,426 221,786 28,760 250,546
Adjustments to initial accounting for business combinations - - - (199) (199) (1,483) (1,682)
Balance at 1 January 2009, restated 64,461 (101) - 157,227 221,587 27,277 248,864
Dilution of interests in subsidiary companies - - - - - 2,432 2,432
Total comprehensive expenses for the financial year - (201) (2,122) (33,763) (36,086) (2,106) (38,192) Dividends paid to equity holders of the Company - - - (8,796) (8,796) - (8,796)
Balance at 31 December 2008 64,461 (101) - 157,227 221,587 27,277 248,864
Minority interests
Total equityAttributable to owners of the Company
The Company
Share capital
Merger reserve
Retained earnings * Total equity
S$'000 S$'000 S$'000 S$'000
2009Balance at 1 January 2009, as previously reported 64,461 8,475 33,204 106,140 Total comprehensive income for the financial year - - 6,958 6,958 Balance at 31 December 2009 64,461 8,475 40,162 113,098
2008
Balance at 1 January 2008 64,461 8,475 39,567 112,503
Total comprehensive income for the financial year - - 2,433 2,433 Dividends paid to equity holders of the Company - - (8,796) (8,796) Balance at 31 December 2008 64,461 8,475 33,204 106,140
Attributable to owners of the Company
* It includes a non-distributable amount of $32,617,000 (2008: $32,617,000) which relates to the gain resulting from an
internal restructuring of certain subsidiary companies in 1999.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 12 of 22
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 well as the number of shares held as treasury shares of the issuer, if any, against the total number of issued shares held as treasury shares of the issuer, 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 issued share capital since the end of the previous
period reported on.
1(d)(iii) Total number of issued shares excluding treasury shares as at end of the current financial period and as at the end of the immediately preceding financial year.
There are no treasury shares. The total number of issued shares as at 31 December 2009 and 31 December 2008 is 125,667,324.
1(d)(iv) A statement showing all sales, transfers, disposal, cancellation and/or use of treasury shares as at end of the current financial period reported on.
Not applicable.
2. Whether the figures have been audited or reviewed and in accordance with which auditing standard or practice.
The figures in the announcement have not been audited or reviewed by the auditors.
3. Where the figures have been audited or reviewed, the auditors’ report (including any
qualifications or emphasis of a matter). Not applicable. 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 and the Company have applied the same accounting policies and methods of
computation in the preparation of the financial statements for the current reporting year as those applied in the audited financial statements as at 31 December 2008 except that the Group and the Company have adopted new Financial Reporting Standards (FRS) which became effective on 1 January 2009.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 13 of 22
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.
On 1 January 2009, the Group and the Company adopted the revised FRS 1 - Presentation of
Financial Statements – Revised Presentation, and FRS 108 - Operating Segments. FRS 1 – Presentation of Financial Statements – Revised Presentation Revised FRS 1 requires owner and non-owner changes in equity to be presented separately. The statement of changes in equity will include only details of transactions with owners, with all non-owner changes in equity presented as a single line item, with details included in a separate statement. In addition, the revised standard introduces the statement of comprehensive income: it presents all items of income and expense recognised in profit or loss, together with ‘other comprehensive income’ (“OCI”). The revisions specify the components in OCI include gains and losses on available-for-sale financial assets, actuarial gains and losses on defined benefit pension plans, deferred gains and losses on cash flow hedges and changes in the asset revaluation reserves. The income tax relating to each component of OCI is presented in the statement of comprehensive income.
The Group has opted to adopt the single statement of comprehensive income. This presentation
has been reflected in the full year 2009 announcement. FRS 108 – Operating Segments
FRS 108 requires an entity to adopt a “management perspective approach” in reporting financial and descriptive information about its reportable segment. Financial information is required to be reported on the basis that it is used internally for evaluating operating segment performance and deciding how to allocate resources to operating segments.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 14 of 22
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.
2009 2008 2009 2008
Earnings per ordinary shares (EPS) (Restated) (Restated)
cents cents cents centsBasic EPS based on the weighted average number ofordinary shares on issue
- From continuing operations (1.32) (28.08) (2.71) (36.67)- From discontinued operations - - - 9.80 Basic EPS - Total (1.32) (28.08) (2.71) (26.87)
Diluted EPS based on weighted average number ofordinary shares
- From continuing operations (1.32) (28.08) (2.71) (36.67)- From discontinued operations - - - 9.80
Diluted EPS - Total (1.32) (28.08) (2.71) (26.87)
4th Quarter Ended 31
December Full Year Ended 31
December
GROUP
Note: Basic and diluted earnings per share are computed on the basis of the weighted average number of ordinary shares in issue which was 125,667,324 (31 December 2008: 125,667,324) during the financial period. There were no outstanding share options during the current reporting period.
7. Net asset value (for the issuer and group) per ordinary share based on the total number of
issued share capital of the issuer at the end of the (a) current financial period reported on and (b) immediately preceding financial year.
As at 31
December
2009
As at 31
December
2008
As at 31
December
2009
As at 31
December
2008$ $ $ $
Net asset value per ordinary share 1.73 1.76 0.77 0.84
GROUP COMPANY
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 15 of 22
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.
Review of Income Statement Despite the sluggish economic recovery, the Group was able to improve on its financial performance. 2009 saw a shaving down of the Group’s overall loss from $33.8 million in 2008 to $3.4 million in 2009. The swing around of $30.4 million was largely attributable to better results in relation to investment related activities which recorded a net gain of $4.4 million compared to a net loss of $17.3 million the previous year. In 2008, the Group had also recognised a one-off impairment loss of $5.8 million on its investment in the Edmontor Group. Lower bank borrowings and early partial retirement of loans helped to reduce the Group’s finance cost by $3.6 million in 2009. The discontinuation of the loss-making China non-food distribution operations in Q2 2009 also helped in the stemming of the loss. 2009 saw improvement in results from the Group’s manufacturing, distribution and food court segments but the food retail segment continued to perform poorly. Revenue In 2009, the Group achieved total revenue of $406.0 million which was 3.3% or $13.6 million lower than the previous year. The breakdown of revenue and operating profit by business segments are as shown in the table below.
Wholesale & Distribution Revenue in wholesale & distribution segment decreased by $4.9 million as compared to the previous year due mainly to the discontinuation of China non-food distribution operations in Q2 2009. The discontinuation of the China non-food distribution business has removed a major drag on the Group’s profitability. The discontinuation has contributed to an improvement in the segment’s profit in 2009 which is reflected in the turnaround from the loss of $2.2 million to profit of $3.6 million. Manufacturing Although revenue from the manufacturing segment increased only marginally by 1.7%, the profit contribution from this segment increased by 69% or $2.4 million to $5.8 million. Better margins on key products and cost savings on raw materials and other expenses have resulted in higher profitability.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 16 of 22
Food Retail The food retail segment saw an improvement in revenue by $6.3 million, rising from $109.8 million in 2008 to $116.1 million in 2009. Food retail comprises the Delifrance retail segment and the Food Junction retail segment. The revenue increase was largely the result of the full year revenue and profit recognition in 2009 of the Food Junction retail segment which was acquired in Q3 2008. The Delifrance retail segment achieved lower revenue in 2009. The decrease in Delifrance's revenue reflected lower sales as well as the closure of loss making outlets. Despite the rigorous effort to contain costs, the Delifrance retail segment in the face of lower revenue incurred a pre-tax loss of $10.4 million. Food Court The food court operation was acquired in Q3 2008. The substantial 251% increase revenue and 308% increase in profitability for this segment was the result of full year revenue and profit recognition of Food Junction’s food court operations in 2009 as compared to a pro-rata recognition in 2008. Securities Investment The decrease in revenue reflected the low trade done in 2009 compared to the $26.9 million of sales of securities investments in 2008. However this segment showed a substantial improvement in profitability over the previous year as the substantial loss of $18.3 million in 2008 emerged as a $2.7 million profit in 2009. Other income Other income rose to $4.1 million in 2009 as compared to $1.1 million in 2008 due mainly to job credits received amounting to $2.5 million. Operating expenses General and administrative expenses fell $11.2 million from $40.8 million for 2008 to $29.6 million for 2009. The decrease was mainly attributable to the reversal in 2009 of a provision made in 2008 for a performance incentive fee following the disposal of an unquoted investment as well as reflecting the recognition in 2008 of a one-off impairment of goodwill in Edmontor Group amounting to $5.8 million. Other operating expenses however increased $13.0 million to $63.8 million in 2009 as compared to $50.9 million in the prior year due mainly to the increase in rental expenses from the acquired Food Junction food court business operations. Investment related activities & finance costs Investment related activities reported a net income of $4.4 million in 2009, which was a substantial turnaround of $21.7 million from the net loss of $17.3 million in 2008. The previous year’s results was severely affected by the sharp fall in 2008 in the fair values of the Group’s holdings of financial instruments. Finance cost decreased $3.6 million to $1.2 million in 2009 due mainly to lower bank borrowings and the early partial repayment of bank loans during the year. Share of results from associated and joint venture companies The financial results of associated and joint venture companies was relatively better in 2009 simply because the previous year’s results was affected by an impairment loss of $2.0 million representing the Group’s share of the write-down in the carrying value of an associated company.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 17 of 22
Review of Financial Position Total equity of the Group stood at $242.0 million as at 31 December 2009 which is $6.9 million lower than the $248.9 million recorded a year earlier due mainly to the net loss incurred for the year. At end of 2009, the Group's non-current assets decreased $19.1 million due mainly to a disposal of an investment property in Q3 2009. In addition, goodwill on consolidation and intangible assets have decreased after the making of a goodwill adjustment. The net assets of the Group as at 31 December 2009 stood at $80.2 million which represented an increase of $8.8 million over the $71.4 million as at 31 December 2008. The significant changes include the following: I. Higher other debtors, prepayments and other recoverable; II. Lower cash and cash equivalent of $29.6 million; III. Lower bank borrowings due to early partial repayment of bank loans during the year; and IV. Lower trade creditors and accruals from better collection and shorter repayment terms. Cash Flow Review For 2009, there was a net cash outflow in operating activities. There was also a net cash outflow in the investing activities in contrast to a net cash inflow in the previous year which saw the proceeds come in from the sales of One Phillip Street and Robinson & Company Ltd. The lower cash outflow from financing activities in 2009 as compared to 2008 was mainly attributable to redemption of notes payable, lower repayment of bank borrowings and no dividends paid to equity holders of the Company. The Group's cash and cash equivalents fell $29.6 million to $59.2 million as at 31 December 2009.
9. Where a forecast, or a prospect statement, has been previously disclosed to shareholders, any variance between it and the actual results
No forecast was previously disclosed on the Group's results for full year 2009.
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.
The global economy has largely and widely recovered from the economic brink of late 2008 and early 2009. Asia generally has recovered well, bolstered by the continuing strong Chinese economy. Singapore and Malaysia, where the Group derives most of its revenues, are expected to achieve over 5% GDP growth. On that positive note, the Group expects overall performance to improve with further economic recovery and the return of consumer confidence and spending. The need to manage and contain operational costs will remain a constant challenge for the Group, especially if better economic conditions put renewed pressures on energy and commodity prices.The Group is hopeful for its re-positioning and restructuring of its Delifrance operations to start to show positive results in 2010.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 18 of 22
11. Dividend
(a) Current Financial Period Reported On
Any dividend declared for the current financial period reported on?
Yes. The Directors of the Company have proposed an exempt (one-tier) final dividend of 2 cents per ordinary share for 2009.
Name of Dividend Final
Dividend Type Cash
Dividend Per Share (cents) 2 cents
Tax Rate Tax exempt (One-tier)
(b) Corresponding Period of the Immediately Preceding Financial Year
Any dividend declared for the corresponding period of the immediately preceding financial year?
Yes.
Name of Dividend Interim
Dividend Type Cash
Dividend Per Share (cents) 2 cents
Tax Rate Tax exempt (One-tier)
(c) Date payable
To be announced at a later date. (d) Books closure date
To be announced at a later date. 12. If no dividend has been declared (recommended), a statement to that effect.
Not applicable. PART II ADDITIONAL INFORMATION REQUIRED FOR FULL YEAR ANNOUNCEMENT
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.
Please refer to next page for the segmental results.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 21 of 22
Business Segement (Continued)
Notes (i) Inter-segment revenues are eliminated on consolidation. (ii) The following items are added to/(deducted from) segment profit to arrive at “Profit before tax from
continuing operations” presented in the consolidated statement of comprehensive income:
2009 2008
$'000 $'000
Finance costs (1,172) (4,802) Share of results of associated companies
and joint venture company 197 (1,684) (975) (6,486)
(iii) The following items are added to/(deducted from) segment assets to arrive at total assets reported
in the statement of financial position:
2009 2008
$'000 $'000Investments in associated companies and
joint venture company 2,364 2,422 Goodwill on consolidation 26,305 29,760
(iv) The following items are added to/(deducted from) segment liabilities to arrive at total liabilities reported in the statement of financial position:
2009 2008
$'000 $'000Deferred tax liabilities 5,927 6,912
Tax payable 18,443 20,336
Borrowings 19,260 27,150 Obligations under finance lease 194 799
43,824 55,197
14. In the review of performance, the factors leading to any material changes in contributions to turnover and earnings by the business or geographical segments.
The factors leading to material changes in contributions to turnover and earnings by business segments have been discussed in Note 8.
AURIC PACIFIC GROUP LIMITED (Co. Reg. No. 198802981D)
FINANCIAL YEAR ENDED 31 DECEMBER 2009
Page 22 of 22
15. A breakdown of sales as follows:
2009 2008 Change
S$’000 S$’000 +/(-) %Sales reported for first half year 201,841 191,113 5.6
Sales reported for second half year 204,123 228,490 (10.7)
Full Year revenue 405,964 419,603 (3.3)
2009 2008 Change
S$’000 S$’000 +/(-) %(Restated)
(Loss)/profit after tax before deducting MI reported for first half year (3,347) 1,265 n.m.
Profit/(Loss) after tax before deducting MI reported for second half year 1,250 (35,676) n.m.Full Year Profit After Tax (2,097) (34,411) (93.9)
n.m. = not meaningful
16. A breakdown of the total annual dividend (in dollar value) for the issuer's latest full year and its previous full year.
2009 2008 S$’000 S$’000
Ordinary
- Final - 6,283 *
- Interim - 2,513 Total - 8,796
* Relates to the final dividend declared for the financial year ended 31 December 2007 which was paid in 2008.
BY ORDER OF THE BOARD Cheong Soo Bin Company Secretary 26 February 2010
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