Link: https://links.sgx.com/1.0.0/corporate-announcements/P94UAPH02857R2FW/f4811f17a5d4b0c2115360f3fbb2efe02448d5a38333f0395f0116aa2a675536

Summary:

• Revenue: US$42.8m, down 7% YoY, as trading business declined (−11%) on softer demand in Singapore and Continental Europe; partially offset by stronger stationery sales (+51%) driven by earlier deliveries in Australia.

• Operating results: Gross profit rose 24% to US$2.5m with margin up to 5.9% (from 4.5%), helped by higher stationery contribution; trading margin flat at 1.0% while stationery margin eased to 45.4% on sales mix and higher inventory write-downs.

• Net profit/loss: Net loss improved to US$1.1m (vs US$1.6m), mainly on higher other income and lower FX losses; loss per share at 0.326 US cents.

• Other income: Increased to US$0.39m (>100%), led by higher rental income and government grants, with absence of prior-year termination costs and reduced FX losses.

• Expenses: Distribution and marketing rose 15% to US$2.3m on higher freight and royalties (partly offset by lower advertising); administrative expenses up 4% to US$1.8m on higher personnel costs.

• Cash flow: Operating cash outflow of US$0.8m, reflecting inventory build and payments to suppliers, partly offset by receivables collection; cash and cash equivalents ended at US$13.2m.

• Balance sheet: Total assets US$51.4m; net assets US$31.7m (NAV per share 9.01 US cents); cash and bank balances US$17.1m; trade and other receivables reduced by US$6.5m; payables down by US$5.1m.

• Segment performance: Stationery revenue US$4.8m (+US$1.6m), segment loss US$1.21m; trading revenue US$38.0m (−US$4.7m), near breakeven with US$0.02m profit; stationery contributed 85% of gross profit vs 79% last year.

• Geography: Continental Europe US$28.1m (down), Hong Kong US$10.0m (up), Australia US$3.2m (up), UK US$1.4m (down), Singapore US$0.02m (down).

• Capex and leases: Capex US$0.06m; right-of-use assets increased; non-current lease liabilities up on new leases; depreciation US$0.27m.

• Borrowings/financing: Lease-related interest expense US$0.03m; finance income US$0.07m; net finance income US$0.04m.

• Dividend: No interim dividend declared to conserve cash amid market uncertainty.

• Outlook: Management expects continued competitive pressure and macro uncertainty (geopolitical tensions, tight monetary policy, logistics and raw material cost pressures) and plans to preserve cash, optimize cashflows, and maintain liquidity.