New Trend Lifestyle Group plc Disposal of subsidiary and trading update (2871A)
December 27 2017 - 2:00AM
UK Regulatory
TIDMNTLG
RNS Number : 2871A
New Trend Lifestyle Group plc
27 December 2017
Embargoed 07.00a.m.
27 December 2017
The information communicated in this announcement contains
inside information for the purposes of Article 7 of Regulation
596/2014.
New Trend Lifestyle Group Plc
("NTLG" or the "Company")
Disposal of subsidiary and trading update
New Trend Lifestyle Group plc (AIM: NTLG), the Singapore-based
Feng Shui products and services group announces that, it has agreed
to sell New Trend Lifestyle (HK) Limited (an intermediate holding
company), and its wholly owned subsidiary, New Trend Lifestyle
(Shenzen) Limited, (together "NTL Hong Kong") to Mr. Leow Lye Seng
for a nominal cash consideration of HKD 1,000 (Hong Kong
Dollars)(approximately GBP100), payable on completion.
NTL Hong Kong was originally set up for the Group's expansion
into China. With the decision to withdraw from China and
concentrate on its Singapore operations in 2015, NTL Hong Kong has
been in run-down mode and is non-trading and effectively dormant.
The legal and accounting costs of maintaining this structure now
far outweigh the benefits and the Board has decided to sell NTL
Hong Kong rather than liquidate it. In the year ended 31 December
2016, NTL Hong Kong had total revenue of HKD 29,801 (approximately
GBP3,000) and made a loss before tax of HKD 65,726 (approximately
GBP6,300). The Group's investment in NTL Hong Kong and amounts owed
to the Company by NTL Hong Kong have been fully provided in the
Group's last audited accounts to 31 December 2016 .
The disposal of NTL Hong Kong completes the withdrawal of NTLG
from China and puts its sole trading focus on its operations in
Singapore.
Trading update
As outlined at the time of the Company's interim announcement
notified on 29 September 2017, the second half of the year has
continued to be very challenging in terms of trading. As a
consequence, and as previously announced, the Board expects results
for the full year ending 31 December 2017 to be poor. The Company
continues to try and manage its cash resources to the best of its
ability and continue, wherever possible to save cost, without
compromising its ability to develop the business and increase
revenue.
The Board continues to look for potential acquisition targets in
line with its stated strategy; nothing which the Board has reviewed
to date has proved to be suitable. The Board continues to look for
opportunities and will make further announcements as
appropriate.
END
For further information:-
New Trend Lifestyle Group Plc +44 (0) 7830
Gregory Collier, Non-Executive Chairman 182501
SPARK Advisory Partners Limited
(NOMAD) +44 (0) 20
Mark Brady/Neil Baldwin 3368 3551
SI Capital Ltd (Broker) +44 (0)1483
Nick Emerson 413500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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