Page 10 - ar2014

Net working capital
As at 31 March 2014, the Group had a positive net working capital
of approximately S$12.7 million as compared to approximately
S$11.1 million as at 31 March 2013.
Cash fow
In 31 March 2014, the Group generated an operating proft before
working capital changes of approximately S$11.3 million. Net cash
generated from operating activities amounted to approximately
S$11.2 million.
The net cash infow from working capital changes comprised
mainly:
a) a decrease in inventories and prepayment by approximately
S$184,000 and S$465,000 respectively;
b) a decrease in trade and other receivables of approximately
S$106,000;
c) an increase in trade and other payables of approximately
S$979,000; and
d) a decrease in provision of approximately S$27,000; partially
offset by
e) an increase in deposits and amount due from associated
companies of S$469,000 and S$202,000 respectively.
In FY2014, net cash used in investing activities amounted to
approximately S$5.9 million. This was mainly attributable to
renovation costs capitalised and the purchase of plant and
equipment for the Group’s new factory and retail outlets.
Net cash used in fnancing activities amounted to approximately
S$1.6 million in FY2014.This was mainly attributable to fnal dividends
paid in FY2014 amounting to approximately S$1.8 million, and
repayments of bank loan and fnance lease liabilities including
interest of an aggregate of S$635,000, partially offset by proceeds
from the issuance of ordinary shares of approximately S$47,000
pursuant to warrants exercised in FY2014 and bank loan of
approximately S$854,000 drawn down for renovation of the Group’s
new factory in Malaysia.
Signifcant Developments
In FY2014, the Group commenced construction works for our new
factory facilities in both Singapore and Iskandar Malaysia.The new
Singapore factory facility will provide us with the opportunity to
centralise both kitchen and production facilities locally, while the
Iskandar Malaysia factory will have automated production lines
and will use locally sourced raw materials where possible, to reduce
our production cost.
CHAIRMAN’S STATEMENT AND OPERATIONS REVIEW
8
Annual Report 2014 •