Flotation distractions and construction obstructions blamed.
Feng-shui specialist New Trend Lifestyle Group (LSE: NTLG) swung into a first-half loss of £392,000 loss from a profit of £625,000 last time. The Singapore-based firm, which provides astrology reading, office design consultancy and match-making, attributed the loss to one-off factors that caused a decline in overall sales.
New Trend Lifestyle, which floated on AIM in June 2012, said business was interrupted by public construction work near its outlet in Singapore's China Town area. The company also blamed the fall in sales to distractions caused by the recent flotation. Consequently, sales in the first six months dipped from £3m to £2.6m. Nevertheless, NTL reported a healthy 11% rise in like-for-like sales.
The company said: "We are pleased to have delivered like for like growth in product sales compared with the corresponding period last year and although overall sales and profits were impacted by the unavoidable temporary closure of one of our large retail outlets in Singapore, this and other one-off factors have now passed."
NTL, which plans to expand its services in China, said: "The company has taken an important step in China, where we have successfully opened two new retail outlets in prime shopping locations in Shenzhen."
Robert Goddard, chairman of NTL, continued: "In, addition, we have made good headway in mobilising our ambitious marketing plans and developing our routes to market. Therefore we remain confident that we will continue to fulfil our growth plans."
Shares in NTL were unchanged at 9p in early trading today. This values the £9m company at about 8 times historic profit, which does not look overly expensive for a retailer. However, the key to NTL's success depends on aggressive growth in China, which hinges on refining its business model in Guangzhou.
This morning's results from New Trend Lifestyle highlight just one of the many interesting companies in the stock market.
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> David is a feng-shui enthusiast but does not own shares in New Style Lifestyle.
