RNS Number : 3800C
FoaMasters International Limited
01 September 2008
For Immediate Release 1 September 2008
FoaMasters International Limited
Interim Results
For the six months ended 30 June 2008
FoaMasters International Limited ("the Company" or "FoaMasters"), the AIM quoted, pre-dominantly China based manufacturer of premium
foam products, is pleased to announce its maiden interim results for the six months to 30 June 2008. The Group, being the Company and its
subsidiaries, is profitable and is capitalising on a growing domestic demand for furniture and life-style products in addition to the global
relocation of manufacturing to China.
Financial Highlights
* Revenue up 2.6% to US$45.5 million (H1 2007 : US$44.3 million)
* * Raw foam products achieved 5.1% growth to US$36.2 million
* Bedding products achieved 26.3% growth to US$8.4 million
* Gross profit declined by 4.8% to US$6.7 million (H1 2007 : US$7.0 million)
* Profit after tax was US$1.5 million (H1 2007 : US$3.0 million), reflecting investment into operations and higher administration costs
following the Company's admission to AIM
* Net assets increased 34.6% to US$32.3 million (H1 2007 : US$24.0 million)
Operational Highlights
* Production output of foam marginally increased to c. 14,800 tonnes (H1 2007 : c. 14,700 tonnes)
* Tenth production line under construction in Linyi, Shandong Province which will add a further 6,000 - 9,000 tonnes to the Group's
production capacity. Estimated for completion in December 2008
* Increased demand for bedding products from customers
* Commissioning of the second Mobius plant on track for production before year end
* Overall improvement in second quarter 2008 operational performance compared to first quarter 2008 in terms of revenue growth and
gross margin
* Strong demand for EnviroMastersTM range of green foam products, achieving 200% growth to 870 tonnes in H1 2008 when compared with
H2 of 2007
* Two further plants awarded SATRA accreditations in April 2008
Analyst Conference Call
A conference call for analysts and investors will be held at 9.00 a.m. BST (4:00 p.m. China) on 1 September 2008. The Company will be
represented by Teh Kim Seng, Chairman; Jack Cheong, CEO; Richard Cheong, Deputy CEO; Bill Hui, CFO.
A presentation to accompany the call can be downloaded from the FoaMasters website at www.foamasters.com and is also available from
Buchanan Communications.
UK Access Number +44 (0)20 8609 1435
UK Toll Free 0808 109 1498
CN North Toll Free 10 800 712 1407
CN South Toll Free 10 800 120 1407
Participant PIN Code 478704�
UK Playback Telephone No. 0800 358 2189 or 020 8609 0289
Replay of the conference call will be available for 7 days from 1 September 2008.
Replay Details:
Replay Number +44 (0) 800 358 2189 or +44 (0) 20 8609 0289
Conference Reference 110229516
Commenting on the maiden interim results of FoaMasters, Mr. Teh Kim Seng, Chairman, said:
"Due to the tough and challenging business conditions, our first half operating results were negatively impacted. In spite of this, we
have continued to trade profitably and towards the end of the second quarter there were early signs that conditions were improving. During
the period, we have continued to execute our strategic expansion plans albeit on a more cautious basis given the market conditions including
focusing on higher margin products, commissioning new plants, launching new product lines including those with an environmental focus. With
these developments underway, we are well positioned to deliver long term growth. For the remainder of 2008, however, FoaMasters remains
cautiously optimistic."
For further information please contact:
FoaMasters International Limited +852 2887 7361
Jack Cheong, Chief Executive Officer
Richard Cheong, Deputy Chief
Executive Officer
Teh Kim Seng, Non-executive Chairman
Hanson Westhouse Limited +44 (0)20 7601 6100
Tim Metcalfe
Anita Ghanekar
Buchanan Communications +44 (0)20 7466 5000
Ben Willey benw@buchanan.uk.com
Suzanne Brocks
Christian Goodbody
Chairman's Statement
The global economic turmoil that commenced in the second half of 2007 continues to affect business this year as trading conditions
remain challenging. Asian businesses have not been spared from this severe downturn although they have generally been less affected than
those in the West.
Whilst diversifying its revenue base to focus more on the Chinese domestic market and products with higher margins, FoaMasters has not
escaped from the downturn and has experienced a slow-down in demand from its traditional customer base in the West where most of its
revenues are currently derived from. Coupled with steep key raw material price inflation, our net income has also been adversely affected
although we continue to trade profitably.
During the period, FoaMasters continued to make key operational changes to deal with the tough trading conditions including overall
improvement in cost management and leveraging fully on its economies of scale. We also continued to execute our strategic expansion plans
albeit on a more cautious basis given the market conditions. These include commissioning new plants, launching new product lines and
increasing focus on our environmentally friendly range of products. Key customers have continued to support us and indeed, we have acquired
new market share despite the overall market having decreased due to lower consumption.
Whilst our first half results reflect a challenging trading environment, towards the end of the second quarter we have detected some
early signs that conditions have improved. With the changes and expansion plans we have put in place, FoaMasters is well positioned for
sustainable long term growth although we remain cautiously optimistic for the remainder of 2008.
We also take the opportunity to announce that Mr. Bill Hui, our Group Financial Controller, has been promoted to become Chief Financial
Officer of the Group.
Chief Executive Officer's and Deputy Chief Executive Officer's Business Review
Revenue for first half of 2008 was US$45.5 million (2007: US$44.3 million) representing a 2.6% growth over the same period last year.
Our gross profit was marginally lower than the corresponding period last year and due to the steep increases in raw material prices, our
gross profit margin was also lower at 14.6% (2007: 15.7%). During the period, we experienced the continual economic slowdown in several of
our core markets in the USA and Europe.
Despite the challenges of the first quarter 2008, when raw material prices continued to climb, the Group has successfully improved its
gross profit margin from 12.8% in the first quarter to 15.9% in the second quarter. This has been achieved by passing on some of the
increased production costs to our customers and better cost management.
Financial Review
Turnover
The Group's turnover increased by 2.6% to US$45.5 million (2007 : US$44.3 million) over the same period last year. Our foam production
output grew marginally to 14,800 tonnes from 14,700 tonnes in the corresponding period last year but as we improve our cost management, we
experienced an increase in the average selling price of foam by 5.8% compared to the 2007 full year average selling price. Turnover for the
bedding finished product segment achieved 26.3% growth to US$8.4 million, a much higher rate of growth compared to the 5.1% achieved for the
raw foam segment.
Gross profit
The Group's total gross profit decreased by 4.8% to US$6.7 million from US$7.0 million in the corresponding period last year. The
decrease in gross profit was due to higher costs of raw materials resulting in a lower gross profit margin of 14.6% compared to 15.7% in
first half 2007. On closer analysis, we have seen gross profit margin recovering since the first quarter 2008, with a steady increase from
12.8% in the first quarter to 15.9% in the second quarter.
Profit after tax
Both operating profit and profit after tax decreased. Profit after tax decreased by 49.7% to US$1.5 million from US$3 million for the
same period last year. This was mainly due to our investment into operations and an overall increase in management and compliance costs to
recruit middle to senior managers and finance professionals to strengthen our overall management across the board following the Group's IPO
and ongoing group expansion. The increase in transportation costs and a reduction in contribution from the Group's Vietnam associate also
reduced the profit after tax.
Operational review and outlook
Production capacities
The Group produced 14,800 tonnes of foam in first half 2008 from its 8 plants across China and Vietnam, representing a growth of 1%
compared to the same period last year. With the shifting of the bedding production facilities from our plant in ZhongShan to another larger
state of the art plant in Heshan, the Group now has more capacity for this product segment and can cope with the expected faster growth in
the bedding product division for the rest of 2008 and beyond.
The Group started construction of its tenth plant in Linyi, Shandong adding another 6,000-9,000 metric tonnes to the Group's annual
production capacity. This factory is expected to be operational in December 2008 and will serve the growing domestic demand from the Bohai
Sea rim economic zone. One of our cornerstone customers has just set up a major production site in Linyi, close to our new plant and we
expect this to underpin our initial sales efforts in the region in due course.
Following the successful commissioning of our first recycled foam powder production line with technology from Mobius Technology Inc. and
launch of the EnviroMasterTM range of green foam using the environmentally friendly recycled foam powder, the Group will take possession of
its second production line in the third quarter 2008. The sales of the recycled foam increased to 870 tonnes in the first half 2008,
achieving 200% growth from the second half 2007. Production from this second line which is to be installed in our FoamTech Jiashan plant, is
expected to commence at the end of third quarter 2008 and will serve the needs of our three plants in the north eastern China region. The
Group has further installed an automatic polyol/powder blender and mixer to help increase the usage of the recycled powder and foam
properties. All plants will subsequently be equipped with such de-aeration units to boost the usage of "green" recycled powder within our
manufacturing processes.
In Vietnam, we added an additional foaming machine which will be installed in the existing Chiya plant to fulfill increasing foam
products demand.
R&D and Accreditations
The Group has successfully developed new formulations based on non petroleum-based polyols derived from castor and palm oil. These have
been introduced to the more environmentally conscious customers and are expected to open up new opportunities for sales in the second half
of 2008.
In April 2008, another two FoaMasters plants received their accreditations from SATRA for laboratory testing procedures. In total, six
of our plants are now accredited by SATRA with the remainder seeking accreditations over the coming months.
The Group also received the Quality Mark certification for its foam from SATRA, enhancing customer confidence in our products and
helping to improve sales orders.
Human Resources
The process of re-engineering and automating our employee piece-rate salary schemes, initiated last year, have been completed across all
plants. The Group also completed the signing of new labour contracts with all employees based on the new labour law that took effect in
January 2008. Consequently, our total number of staff employed on a Group level decreased from 1,719 in December 2007 to 1,664 by the end of
the first half 2008, representing a drop of 3.2%. This has a net cost saving effect for us.
FoaMasters continued to recruit middle to senior managers from both within and outside of China to strengthen operational and general
management and to keep pace with the group's ongoing expansion.
Funding
The Group obtained additional financing facilities and secured loan/trade re-financing of c. US$19 million in first half 2008. The total
facilities of US$46 million will facilitate the purchase of higher volumes of raw materials and fuel the growth and expansion of our plants.
There were US$17 million unutilized trading facilities as at June 2008.The gearing ratio (loan/capital employed) was 54% as at June 2008
with 2% increase from December 2007.
Market Strategy
In line with the growing affluence of the Chinese population, leading to higher demand for better quality foam products, the Group has
put more emphasis on the China domestic foam market. Our focus on the finished bedding products segment which gave us higher profit margin
has delivered a much higher growth rate compared to the raw foam segment. In keeping with this strategy, we are currently setting up a
domestic sales team to initiate the retailing and distribution of the S'Fonia branded line of products in the second half of 2008.
The Group has also started preparatory work for its Shandong plant in Linyi, marking a further geographical expansion of the Group into
the north-east of China. This new plant is expected to benefit from the growing Bohai Sea rim economic zone that has gathered momentum in
recent years having been earmarked to become a major economic zone in China in the near future.
In Summary
FoaMasters has experienced a challenging start to 2008; however the Group has been successful in implementing measures to enhance cost
management in order to improve our gross margin, whilst pursuing initiatives to secure the longer term growth of the Group. These
initiatives have started to produce positive results in the second quarter 2008 and we intend to continue with some of the production and
operational changes in the second half of 2008 in order to continue to improve margins and increase sales of our finished products.
By the end of the trading year, FoaMasters will have nine operational foam plants in China and Vietnam, with two plants producing
environmentally friendly recycled powder. This will have the net effect of enabling the Group to achieve total production capacity at 78,000
tonnes of foam annually. We are confident that we will be well positioned to take advantage of any early improvement in the current economic
environment.
We look to the future with improved confidence.
Jack Cheong Chi Vai, CEO
Richard Cheong Chi Kit, Deputy CEO
29 August 2008
INDEPENDENT REVIEW REPORT
TO FOAMASTERS INTERNATIONAL LIMITED
(Incorporated in Jersey)
Introduction
We have reviewed the interim financial information set out on pages 7 to 17 which comprises the consolidated balance sheet of the
Company as at 30 June 2008 and the related consolidated income statement, consolidated statement of changes in equity and consolidated cash
flow statement for the six-month period then ended. We have read the other information contained in the half-yearly report and considered
whether it contains any apparent misstatements or material inconsistencies with the financial information.
Our responsibility is to express a conclusion on this interim financial information based on our review and to report our conclusion
solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. To the fullest extent permissible, we
do not accept or assume responsibility towards or accept liability to any other person for the contents of this report, or for the
conclusions we have reached.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the directors.
Our responsibility
Our responsibility is to express to the company a conclusion on the financial information in the half-yearly report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 "Review of Interim
Financial Information Performed by the Independent Auditor of the Entity" issued by the Auditing Practices Board for use in the UK. A review
of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with
International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of
all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented
for the six months ended 30 June 2008.
RSM Bentley Jennison
Chareterd Accountants and Registered Auditors
London, England
Date: 29 August 2008
Consolidated Income Statement
For the six months ended 30 June 2008
Six months ended Year ended
30 June 31 December
2008 2007 2007
Unaudited Unaudited Audited
Note US$'000 US$'000 US$'000
Continuing operations
Turnover 3 45,479 44,310 102,620
Cost of sales (38,829) (37,324) (85,880)
Gross profit 6,650 6,986 16,740
Other income 742 260 631
Distribution and selling expenses (1,634) (1,299) (2,974)
Administrative expenses (3,527) (2,149) (4,883)
Other operating expenses (163) (150) (396)
Profit from operations 2,068 3,648 9,118
Finance income 114 106 302
Finance costs (517) (471) (938)
Share of profits of associates 4 128 250 405
* *
Profit before tax 1,793 3,533 8,887
Income tax expense (265) (493) (1,003)
Profit for the periods 1,528 3,040 7,884
Attributable to:
Equity holders of the parent 1,528 3,026 7,788
Reserves - - 42
Minority interests - 14 54
1,528 3,040 7,884
The notes to the financial statements form an integral part of these financial statements.
Consolidated Balance Sheet
As at 30 June 2008
30 June 31 December
2008 2007 2007
Note Unaudited Unaudited Audited
US$'000 US$'000 US$'000
Non-current assets
Goodwill 809 775 809
Investment properties 3,490 2,922 3,220
Property, plant and equipment 13,503 9,011 12,134
Interest in associates 4 3,070 2,775 2,943
Prepaid land lease payments 1,235 1,131 1,173
Available-for-sale financial 58 57 58
assets
22,165 16,671 20,337
* * *
Current assets
Inventories 16,025 8,749 11,244
Trade receivables 22,057 20,489 23,048
Prepayments, deposits and other 4,668 2,978 2,692
receivables
Due from directors 559 640 749
Due from related company 5 - 81 -
Due from associates 4 179 686 1,349
Pledged bank deposits 8,955 5,385 9,566
Cash and cash equivalent 2,515 3,028 5,698
54,958 42,036 54,346
Total assets 77,123 58,707 74,683
Equity
Capital and reserves
Share capital 835 - 835
Share premium 977 - 977
Share options reserve 348 - 55
Merger reserve (786) 13 (786)
Statutory reserve 95 53 95
Acquisition reserve 145 - -
Currency translation reserve 1,724 1,260 1,706
Retained earnings 28,958 22,665 27,430
Equity attributable to equity 32,296 23,991 30,312
holders
Minority interest - 93 133
32,296 24,084 30,445
The notes to the financial statements form an integral part of these financial statements.
Consolidated Balance Sheet (Cont'd)
As at 30 June 2008
30 June 31 December
2008 2007 2007
Unaudited Unaudited Audited
Note US$'000 US$'000 US$'000
Non-current liabilities
Long term interest-bearing 6 595 404 80
borrowings
Deferred tax liabilities 547 406 547
1,142 810 627
Current liabilities
Trade payables 7,786 11,856 9,915
Bills payable 10,431 9,756 8,950
Accruals and other payables 2,510 1,912 3,221
Due to related parties 5 1,501 2,147 1,465
Current portion of 6 17,422 4,230 16,024
interest-bearing borrowings
Current tax liabilities 4,035 3,912 4,036
43,685 33,813 43,611
Total liabilities 44,827 34,623 44,238
Total equity and liabilities 77,123 58,707 74,683
As approved by the Board of Directors on 29th August 2008 and signed on its behalf by
------------------------------- ---------------------------------
Jack Cheong Chi Vai Richard Cheong Chi Kit
Director and CEO Director and Deputy CEO
The notes to the financial statements form an integral part of these financial statements.
Consolidated Statement of Cash Flows
For the six months ended 30 June 2008
Six months ended Year ended
30 June 31 December
2008 2007 2007
Unaudited Unaudited Audited
US$'000 US$'000 US$'000
Cash flows from operating activities
Profit for the year before tax 1,793 3,532 8,887
Adjustments for:
Amortisation of prepaid land lease 15 7 17
payments
Depreciation 697 545 1,068
Interest income (113) (106) (302)
Finance cost 517 327 862
Fair value gains on investment (270) (55) (347)
properties
Share of profits of associates (127) (250) (405)
Share based payment 294 - 49
Plant and equipment written-off 177 - 64
* *
Operating cash flows before movements in 2,983 4,000 9,893
working capital
Increase in trade and other receivables (985) (2,661) (4,936)
Increase in inventories (4,781) (252) (2,747)
Decrease/(Increase) in amounts due from 190 (230) (339)
directors
Decrease in amounts due from a related - 3 84
company
Increase/(Decrease) in amounts due to a 36 (91) (773)
related company
(Decrease)/Increase in trade and other (1,359) 3,958 2,520
payables
Net cash generated from operating (3,916) 4,727 3,702
activities
Interest paid (517) (327) (862)
Tax paid (266) (173) (418)
Net cash (used in)/from operating (4,699) 4,227 2,422
activities
The notes to the financial statements form an integral part of these financial statements.
Consolidated Statement of Cash Flows (Cont'd)
For the six months ended 30 June 2008
Six months ended Year ended
30 June 31 December
2008 2007 2007
Unaudited Unaudited Audited
US$'000 US$'000 US$'000
Cash flows from investing activities
Additions to prepaid land lease payments (77) (393) (411)
Proceeds from disposal of property, - 8 -
plant and equipment
Purchases of property, plant and (2,243) (1,746) (5,054)
equipment
Interest received 113 106 302
Increase in other investment - - (4)
* * *
Net cash used in investing activities (2,207) (2,025) (5,167)
Cash flows from financing activities
Proceeds from issue of shares - 12 2,700
Issued expenses - - (1,682)
Bank and other loans raised 5,211 2,727 17,061
Repayment of bank and other loans (3,450) (3,616) (6,955)
Advance to associates company 1,170 (32) (695)
* * *
Net cash from/(used in) financing 2,931 (909) 10,429
activities
Net (decrease)/increase in cash and cash (3,975) 1,293 7,684
equivalents
Effect of foreign exchange rate changes 29 465 531
Cash and cash equivalents at beginning 12,477 4,263 4,262
of year
Cash and cash equivalents at end of year 8,531 6,021 12,477
Analysis of cash, cash equivalents and
bank overdraft
Bank and cash balances 2,515 3,029 5,698
Pledged bank deposits 8,955 5,385 9,566
Bank overdrafts (2,939) (2,393) (2,787)
8,531 6,021 12,477
The notes to the financial statements form an integral part of these financial statements.
CONSOLIDATED CHANGES IN EQUITY STATEMENT
For the six months ended 30 June 2008
Foreign currency
Unaudited
Share
Share Share options Merger translation reserve Statutory reserve Acquisition reserve
Retained Minority interest Total
capital premium reserve reserve
earnings Total equity
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
US$'000 US$'000 US$'000 US$'000
At 31 December 2006 - - - 1 651 53 -
19,639 20,344 79 20,423
Translation differences - - - - 609 - -
- 609 - 609
Profit for the year - - - - - - -
3,026 3,026 14 3,040
Issue of shares of the company - - - 12 - - -
- 12 - 12
At 30 June 2007 and 1 July - - - 13 1,260 53 -
22,665 23,991 93 24,084
2007
Translation differences - - - - 446 - -
3 449 - 449
Profit for the year - - - - - - -
4,804 4,804 40 4,844
Issue of shares of the company 835 2,665 - - - - -
- 3,500 - 3,500
Issue expenses - (1,682) - - - - -
- (1,682) - (1,682)
Share options expenses - (6) 55 - - - -
- 49 - 49
Subsidiary share and reserves - - - (799) - - -
- (799) - (799)
Transfer to statutory reserves - - - - - 42 -
(42) - - -
At 31 December 2007 and 1 835 977 55 (786) 1,706 95 -
27,430 30,312 133 30,445
January 2008
Translation differences - - - - 18 - -
- 18 - 18
Profit for the year - - - - - - -
1,528 1,528 - 1,528
Share options expenses - - 293 - - - -
- 293 - 293
Subsidiary share and reserves - - - - - - 145
- 145 (133) 12
At 30 June 2008 835 977 348 (786) 1,724 95 145
28,958 32,296 - 32,296
The notes to the financial statements form an integral part of these financial statements.
Notes to the Financial Statements
For the six months ended 30 June 2008
1. BASIS OF PREPARATION
The information for the period ended 30 June 2008 is not audited and does not constitute statutory accounts as defined in the Companies
(Jersey) Law 1991. The statutory accounts for the year ended 31 December 2007 were given an unqualified audit report and were prepared in
accordance with International Financial Reporting Standards ("IFRS") as adopted for use in the European Union. A copy of the statutory
accounts for that year has been delivered to the Companies Registry in Jersey.
The interim accounts for the six month period to 30 June 2007 were also unaudited.
2. ACCOUNTING POLICIES
The interim results have been prepared in accordance with IFRS accounting rules. The Accounting Policies used in the preparation of
these results were the accounting policies used in the preparation of the results for the year ended 31 December 2007 and detailed in the
notes to those results (see Annual Report 2007 issued 29 April 2008).
3. REVENUE AND SEGMENT ANALYSIS
The Group's operations are located in Hong Kong, Macau, PRC and Vietnam. As all the comparatives carry out similar activities and such,
the directors have identified segments based on type of product.
Business segment
Unaudited
01.01.2008 to 30.06.2008
Foam products Bedding & furniture Chemical products Machineries Total
US$'000 US$'000 US$'000 US$'000 US$'000
Revenue 36,193 8,396 764 126 45,479
Segment results 4,569 2,016 59 6 6,650
Other income 742
Unallocated expenses (5,324)
Profits from operations 2,068
Finance income 114
Finance costs (517)
Share of profits of associates 128
Profit before tax 1,793
Unaudited
01.01.2007 to 30.06.2007
Foam products Bedding & furniture Chemical products Machineries Total
US$'000 US$'000 US$'000 US$'000 US$'000
Revenue 34,447 6,646 3,217 - 44,310
Segment results 5,011 1,747 228 - 6,986
Other income 260
Unallocated expenses (3,598)
Profits from operations 3,648
Finance income 106
Finance costs (471)
Share of profits of associates 250
Profit before tax 3,533
3. REVENUE AND SEGMENT ANALYSIS (Cont'd)
Audited
01.01.2007 to 31.12.2007
Foam products Bedding & furniture Chemical products Machineries Total
US$'000 US$'000 US$'000 US$'000 US$'000
Revenue 75,410 17,644 9,434 132 102,620
Segment results 10,632 4,113 1,909 86 16,740
Other income 631
Unallocated expenses (8,253)
Profits from operations 9,118
Finance income 302
Finance costs (938)
Share of profits of associates 405
Profit before tax 8,887
Geographical segments
Unaudited Unaudited Audited
01.01.2008 to 01.01.2007 to 01.01.2007 to 31.12.2007
30.06.2008 30.06.2007
Revenue Revenue Revenue
US$'000 US$'000 US$'000
PRC - domestic consumption 6,607 6,629 15,485
PRC - overseas consumption 29,426 28,590 61,943
Hong Kong, Macau and Taiwan 1,413 2,153 7,047
Vietnam 378 1,138 2,681
United States of America 4,593 3,628 8,625
Europe 3,062 2,172 6,839
45,479 44,310 102,620
4. INTEREST IN ASSOCIATES
Unaudited Unaudited Audited
30.06.2008 30.06.2007 31.12.2007
US$'000 US$'000 US$'000
Unlisted investments:
Share of net assets 3,070 2,775 2,943
Details of the Group's associates are as follows:
Percentage of
ownership
Place of Issued and paid up interest Principal activities
incorporation capital
Name
Valuable Development British Virgin 100 Ordinary shares 49% Investment holding
Limited Islands of US$1 each
The summarised financial information in respect of the Group's associates is set out below:
Unaudited Unaudited Audited
30.06.2008 30.06.2007 31.12.2007
US$'000 US$'000 US$'000
At 30 June 2008
Total assets 11,442 10,346 10,544
Total liabilities (5,175) (4,682) (4,539)
Net assets 6,267 5,664 6,005
Group's share of associates' net assets 3,070 2,775 2,943
Unaudited Unaudited Audited
30.06.2008 30.06.2007 31.12.2007
US$'000 US$'000 US$'000
For the six months ended 30 June 2008
Total revenue 7,134 6,944 13,754
Total profits for the year 261 511 826
Group's share of associates' profits for 128 250 405
the year
The amounts due from associates are unsecured, interest-free and have no fixed repayment terms. 5. AMOUNTS DUE (TO)/FROM RELATED
PARTIES
Unaudited Unaudited Audited
30.06.2008 30.06.2007 31.12.2007
Name
US$'000 US$'000 US$'000
Cheong Fok Kok The founder of the Group (1,380) (2,147) (1,380)
Lik Tai Hang Co. Ltd. A company controlled by the (81) 81 (85)
founder
Chiyowa Tsusho Corporation Available-for-sale financial (40) - -
Ltd. assets
(1,501) (2,066) (1,465)
The amounts due (to)/from related parties are unsecured, interest-free and have no fixed repayment terms.
6. INTEREST-BEARING BORROWINGS
Unaudited Unaudited Audited
30.06.2008 30.06.2007 31.12.2007
US$'000 US$'000 US$'000
Bank overdrafts 2,939 2,393 2,787
Bank mortgage loans 136 246 191
Other bank loans 14,942 1,995 13,126
18,017 4,634 16,104
The borrowings are repayable as
follows:
On demand or within one year 17,422 4,230 16,024
In the second year 595 379 80
In the third to fifth years, inclusive - 25 -
18,017 4,634 16,104
Corporate Information
Financial calendar 2008
Annual General Meeting, 26 May 2008
Interim announcement, 1 September 2008
Financial year end, 31 December 2008
Registered Office and Company Secretary
Walker House
28-34 Hill Street
St. Helier JE4 8PN
Jersey, Channel Islands
Principal place of business in Hong Kong
Unit 1, 21st Floor
Greenfield Tower
Concordia Plaza
No. 1, Science Museum Road
Hong Kong
Website
www.FoaMasters.com
Nominated Adviser and Broker
Hanson Westhouse Limited
One Angel Court
London EC2R 7HJ
Financial and Corporate Adviser
Netrove Strategic Corporation
Unit 1002, 10th Floor
100 Queen's Road, Central
Hong Kong
Legal Advisers
United Kingdom:
Stephenson Harwood
One, St Paul's Churchyard
London EC4M 8SH
Hong Kong:
Winnie Mak, Chan & Yeung Solicitors
1908-9, 19/F Bank of America Tower
12 Harcourt Road, Central
Hong Kong
Group Auditors
RSM Bentley Jennison
45 Moorfields
London
EC2Y 9AE
Hong Kong & China Auditors
RSM Nelson Wheeler
29th Floor, Caroline Centre
Lee Garden Two
28 Yun Ping Road
Hong Kong
Registrars
Computershare Investor Services (Channel Islands) Limited
PO Box 83, Ordnance House
31 Pier Road, St Helier
Jersey JE4 8PN, Channel Islands
Financial PR
Buchanan Communications
45 Moorfields
London EC2Y 9AE
This information is provided by RNS
The company news service from the London Stock Exchange
END
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