SEO Version
OPERATING &
F INANCI AL REV I EW (Con t ’ d )
FINANCIAL POSITION
As at the end of FY2014 on 31 March
2014, the Group’s total assets rose from
S$54.53 million in FY2013 to S$80.04
million in FY2014, driven mainly by the
increase in cash and cash equivalents
from the sale and leaseback arrangement
of 30 Teban Gardens Crescent, as
well as receipt of proceeds from the
IPO completed in January 2014. Total
liabilities fell from S$45.67 million to
S$43.64 million, driven by the reduction
in current liabilities offsetting an increase
in non-current liabilities. Total equity rose
from S$8.86 million to S$36.39 million.
NON-CURRENT ASSETS
Non-current assets decreased by S$1.60
million fromS$22.28millionas at 31March
2013 to S$20.68 million as at 31 March
2014 mainly due to the disposal of 30
Teban Gardens Crescent amounting to
S$4.61 million in the sale and leaseback
arrangement on 17 March 2014, which
was partially offset by additions in
motor vehicles amounting to S$1.47
million and an increase in non-current
assets of S$1.16 million relating to the
long-term portion of the upfront land
premium paid in the sale and leaseback
arrangement.
CURRENT ASSETS
Current assets increased by S$27.11
million from S$32.25 million as at 31
March 2013 to S$59.36 million in 31
March 2014. The increase in current
assets was mainly due to:
(i) an increase in cash and cash
equivalents of S$28.21 million
mainly due to the proceeds from
the sale and leaseback arrangement
and the receipt of the IPOproceeds;
(ii) an increase in inventories of S$2.62
million mainly due to the increase
in inventories of watches and pre-
owned automobiles; and
(iii) an increase in other assets of S$1.27
million mainly due to the deposit
payment of S$1.07 million for one
Pagani automobile and the current
portion of the upfront landpremium
of S$0.54 million paid in the sale
and leaseback arrangement.
The increase in current assetswas offset by
a decrease in trade and other receivables
of S$4.98million,mainlydue tocollections
from related parties of S$4.69 million.
EQUITY
Equity comprises share capital, retained
earnings and merger reserves. The
increase in equity of S$27.54 million
was due to the increase from issue
of new shares pursuant to the IPO of
S$10.52 million and profit for the year
of S$17.02 million.
NON-CURRENT LIABILITIES
Non-current liabilities increased by
S$14.81 million from S$13.87 million as
at 31 March 2013 to S$28.68 million in
31 March 2014, mainly due to higher
non-current other liabilities of S$15.19
million, offset by adecrease innon-current
other financial liabilities of S$0.37million.
Non-current other liabilities of S$16.53
million as at 31 March 2014 comprised
long-termportion of the deferred income
recognised under the sale and leaseback
arrangement. Non-current other financial
liabilities decreased by S$0.37 million
mainly due to the repayment of term
loan of S$1.43 million for the financing
of the Group’s leasehold properties at
7 & 9 Chang Charn Road, which was
offset by an increase in finance leases
relating to the Group’s automobiles of
S$1.03 million.
CURRENT LIABILITIES
Current liabilities decreased by S$16.84
million fromS$31.80million in FY2013 to
S$14.96million in FY2014mainly due to:
(i) adecrease inother financial liabilities
of S$15.32millionarisingmainly from
the repayment of short-term bank
borrowings of S$15.59 million. The
Group repaid the short-term bank
borrowings usingproceeds fromthe
sale and leaseback arrangement;
and
(ii) a decrease in trade and other
payables of S$2.99 million arising
mainly from a decrease of S$2.89
million in trade payables and a
decrease of S$1.09 million in other
payables due to the repayment of
related party balances, which was
offset by an increase of S$0.99
million relating to payables to
building contractors on 30 Teban
Gardens Crescent.
The decrease was offset by an increase in
current other liabilities of S$3.00 million,
mainly due to the current portion of the
deferred income recognised under the
sale and leaseback arrangement.
CASH FLOW
Net Cash from Operating Activities
In FY2014, the net cash from operations
amounted to S$1.49 million, comprising
operating cash flows before changes
in working capital of S$2.66 million,
adjusted by net working capital inflow
of S$0.55million. The net working capital
inflow was attributed to a decrease in
trade and other receivables of S$4.98
million, arisingmainly fromthe collections
from related parties of S$4.69 million,
which was partially offset by an increase
in other assets of S$2.43 million, arising
mainly from the prepaid land premium
of S$1.70 million for 30 Teban Gardens
Crescent and deposit of S$1.07 million
for one unit of Pagani automobile.
In FY2014, The Group paid taxes of
S$1.72 million.
Net Cash from Investing Activities
Net cash from investing activities
amounted to S$37.91 million in FY2014.
This was mainly due to the disposal of
property, plant andequipment of S$40.92
million, which was offset by purchases
of property, plant and equipment of
S$3.02 million.
Net Cash from Financing Activities
Net cash used in financing activities
amounted to S$9.29 million in FY2014
mainly due to the repayment of bank
borrowings of S$15.09 million, finance
lease repayment of S$2.86 million and
listing expenses of S$2.00 million,
which was offset by the IPO proceeds
of S$11.20 million and interest paid of
S$0.54 million.
USE OF NET IPO PROCEEDS
The Group raised net proceeds of
approximately S$8.46 million from its
IPO which have been utilised as set out
in Table 1 below.
USE OF NET IPO PROCEEDS
ALLOCATION OF
NET PROCEEDS
(S$’MILLION)
NET PROCEEDS UTILISED
AS AT 31 MARCH 2014
(S$’MILLION)
BALANCE OF NET PROCEEDS
AS AT 31 MARCH 2014
(S$’MILLION)
Expansion of our operations
locally and in other markets and
diversification into other luxury
lifestyle business
6.00
-
6.00
General working capital
2.46
2.46
-
Total
8.46
2.46
6.00
BASIC EARNINGS PER SHARE
7.30¢
RETURN ON ASSETS
21%
RETURN ON EQUITY
47%
DELACOUR TIMEPIECE
TABLE 1: USE OF NET IPO PROCEEDS
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A M A R Q U E A B O V E T H E R E S T
2 0 1 4 A N N U A L R E P O R T
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E U R O S P O R T S G L O B A L L I M I T E D
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