Elektromotive Group Limited

Half-Year Financial Statement And Dividend Announcement 2017

Financials Archive

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Unaudited Half-Year Financial Statement And Dividend Announcement

Review of Performance

As mentioned in note (ii) to the Income Statement on page 2, the (loss)/ profit from EUK have been classified as discontinued operations in HY 2017.

Revenue

Revenue from Malaysian publishing operations for the 6 months ended 30 September 2017 decreased marginally to S$0.48 million as compared to S$0.50 million in the previous corresponding period.

Direct costs

Employee compensation decreased by 77.9% to S$0.46 million as compared to S$2.06 million in HY 2017 mainly due to damages for contractual breach paid to executive directors who stepped down during FY 2017 amounting to S$1.71 million.

Operating lease expenses increased by 28.0% to S$32,000 as compared to S$25,000 in HY 2017 due to a new lease taken up by the Company in June 2016.

Other operating expenses decreased by 77.0% to S$0.18 million as compared to S$0.78 million in HY 2018 largely due to lower professional fees incurred in HY 2018.

Loss attributable to shareholders

Loss attributable to shareholders for the period under review was S$0.48 million as compared to S$3.13 million in the previous corresponding period.

The lower loss was due to the following:

  • decrease in employee compensation and other operating expenses in HY 2018;
  • loss incurred in the disposal of Wine and Dine Experience Pte Ltd of S$0.25 million in HY 2017; and
  • loss of S$1.14 million attributable to the EV division in HY 2017

Balance sheet

The decrease in trade and other receivables is largely due to collection from trade receivables.

The decrease in trade and other payables is due to payment to trade and other creditors.

Cash-flow

Cash and cash equivalents as at end of period was S$3.06 million as compared to S$3.86 million at the beginning of the period.

Cash used in operating activities decreased by S$2.07 million to S$0.78 million in HY 2018 as compared to HY 2017 largely due to the loss incurred by the Company.

The Group had a positive working capital of S$2.82 million as at 30 September 2017 as compared to S$3.27 million as at 30 September 2016.

Commentary

As previously announced, the Company is actively seeking new business activities, including but not limited to acquisitions that may result in a reverse takeover transaction.

Additionally, the Malaysian publishing operations is cashflow positive and the Group is exploring business opportunities to expand and grow the publishing operations in the region.

Balance Sheet