SAINT HONORE<00192> - Results Announcement
Saint Honore Holdings Limited announced on 17/07/2006:
(stock code: 00192 )
Year end date: 31/03/2006
Currency: HKD
Auditors' Report: Unqualified
(Audited )
(Audited ) Last
Current Corresponding
Period Period
from 01/04/2005 from 01/04/2004
to 31/03/2006 to 31/03/2005
Note ('000 ) ('000 )
Turnover : 589,421 568,901
Profit/(Loss) from Operations 2 : 49,645 71,672
Finance cost : N/A N/A
Share of Profit/(Loss) of
Associates : N/A N/A
Share of Profit/(Loss) of
Jointly Controlled Entities : N/A N/A
Profit/(Loss) after Tax & MI : 40,966 59,214
% Change over Last Period : -30.8 %
EPS/(LPS)-Basic (in dollars) 3 : 0.193 0.280
-Diluted (in dollars) 3 : 0.192 0.277
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 40,966 59,214
Final Dividend : 7 cents 9 cents
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : 15/09/2006 to 21/09/2006 bdi.
Payable Date : 05/10/2006
B/C Dates for (-)
General Meeting : N/A
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
1. Principal accounting policies
The principal accounting policies applied in the preparation of the
consolidated financial statements of the Group are set out below. These
policies have been consistently applied to all the years presented, unless
otherwise stated.
Basis of preparation
The consolidated financial statements of the Group have been prepared in
accordance with Hong Kong Financial Reporting Standards ("HKFRS"), issued
by the Hong Kong Institute of Certified Public Accountants ("HKICPA"). The
consolidated financial statements have been prepared under the historical
cost convention except that financial assets and financial liabilities at
fair value through profit or loss and held-to-maturity securities are
stated at amortized cost.
The adoption of new/revised HKFRS
For the accounting period commencing on 1 April 2005, the Group has
adopted the new/revised standards and interpretations of HKFRS below,
which are relevant to its operations. The 2004/05 comparatives have been
amended as required, in accordance with the relevant requirements.
HKAS 1 Presentation of Financial Statements
HKAS 2 Inventories
HKAS 7 Cash Flow Statements
HKAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors
HKAS 10 Events after the Balance Sheet Date
HKAS 16 Property, Plant and Equipment
HKAS 17 Leases
HKAS 21 The Effects of Changes in Foreign Exchange Rates
HKAS 24 Related Party Disclosures
HKAS 27 Consolidated and Separate Financial Statements
HKAS 32 Financial Instruments: Disclosures and
Presentation
HKAS 33 Earnings per Share
HKAS 36 Impairment of Assets
HKAS 38 Intangible Assets
HKAS 39 Financial Instruments: Recognition and
Measurement
HKAS-Int15 Operating leases - Incentives
HKFRS 2 Share-based Payment
The adoption of new/revised HKASs 1, 2, 7, 8, 10, 16, 21, 24, 27, 32, 33,
36, 39 and HKAS-Int 15 did not result in substantial changes to the Group
accounting policies.
In summary:
- HKAS 1 has affected the presentation of cake coupon liabilities.
- HKASs 2, 7, 8, 10, 16, 21, 27, 32, 33, 36, 39 and HKAS-Int 15 had no
material effect on the Group's accounting policies.
- HKAS 24 has affected the identification of related parties and some
other related-party disclosures.
HKAS 1 has affected the presentation of cake coupon liabilities. In prior
years, the estimated value of cake coupons which were expected to be
redeemed in the next twelve months were classified as current liabilities
on the balance sheet. With the adoption of HKAS 1, the cake coupon
liabilities are classified under current liabilities as the Group does not
have an unconditional right to defer the settlement of these cake coupon
liabilities.
The adoption of the revised HKAS 17 has resulted in a change in the
accounting policy relating to the reclassification of leasehold land and
land use rights from property, plant and equipment to operating leases.
The up-front prepayments made for the leasehold land and land use rights
are expensed in the profit and loss account on a straight-line basis over
the period of the lease or when there is impairment, the impairment is
expensed in the profit and loss account. In prior years, the leasehold
land was accounted for at cost less accumulated depreciation and
accumulated impairment.
The Group has reassessed the useful lives of its intangible assets in
accordance with the provisions of HKAS 38 and considered the trademarks
held by the Group as having indefinite useful lives. Therefore, the
trademarks are not amortized but will be tested for impairment. Previously
the Group amortized its trademarks over 20 years. The transitional
provisions of HKAS 38 prohibits any adjustments to the carrying amount
recognized on first adoption and any assessment of useful life shall be
accounted for prospectively as a change in accounting estimate in
accordance with HKAS 8.
The Group adopted the transitional provisions of HKFRS 2 which applies to
grants of shares, share options or other equity instruments after 7
November 2002 and had not yet vested at the effective date of the HKFRS,
the accounting period commencing on or after 1 January 2005. As the
unexercised share options of the Group were granted before 7 November 2002
and were fully vested prior to the accounting period commencing 1 April
2005, there is no impact on the balance sheet and profit and loss account
from adopting HKFRS 2.
All changes in the accounting policies have been made in accordance with
the transitional provisions in the respective standards, wherever
applicable. All standards adopted by the Group require retrospective
application other than:
- HKAS 16 requires the initial measurement of an item of property, plant
and equipment acquired in an exchange of assets transaction is accounted
at fair value prospectively only to future transactions.
- HKAS-Int 15 does not require the recognition of incentives for leases
beginning before 1 January 2005.
- HKFRS 2 requires application for all equity instruments granted after 7
November 2002 and not vested at 1 January 2005.
The effect of the changes in the above accounting policies on the
financial statements of the Group are summarized below:
(a) The adoption of HKAS 1 has resulted in:
2006 2005
HK$'000 HK$'000
Increase in current liabilities 84,948 75,110
Decrease in non-current liabilities (84,948) (75,110)
======================
(b) The adoption of HKASs 17 has resulted in:
2006 2005
HK$'000 HK$'000
Increase in leasehold land and land use rights
74,154 74,398
Decrease in property, plant and equipment
(74,154) (74,398)
Decrease in depreciation of property, plant and equipment
(1,707) (1,448)
Increase in amortization of prepaid operating lease payments
1,707 1,448
Increase in freehold land 2,039 1,864
Decrease in depreciation of property, plant and equipment
(175) (175)
Increase in retained earnings 2,039 1,864
=======================
(c) The adoption of HKAS 38 has resulted in:
2006 2005
HK$'000 HK$'000
Increase in trademarks 4,600 -
Decrease in amortization of trademarks (4,600) -
======================
2. Profit from operations included the following items:
(Restated)
2006 2005
HK$'000 HK$'000
Auditors' remuneration 1,073 852
Amortization of prepaid operating lease payments
1,707 1,448
Amortization of trademarks - 4,600
Loss/(gain) on disposal of properties 307 (26,113)
Loss/(gain) on disposal of other plant and equipment
346 (19)
Net exchange gain (735) (118)
========================
3. Earnings per share
The calculations of basic and diluted earnings per share are based on
the followings:
(Restated)
2006 2005
HK$'000 HK$'000
Earnings
Profit for the year attributable to shareholders
of the Company 40,966 59,214
========================
Number of shares 2006 2005
Weighted average number of ordinary shares in issue
212,735,630 211,520,616
Effect of potential dilutive ordinary shares
1,102,110 2,033,914
--------------------------
Weighted average number of ordinary shares for
diluted earnings per share 213,837,740 213,554,530
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