Additional information on the half year financial statement and dividend announcement for the six months ended 30 June 2002 ("results announcement")

SGX, in its letter of 27 August 2002 requested the Company for additional information on the Company's Results Announcement issued on 23 August 2002. SGX queries are reproduced below and the Company's responses are as follows :-

(a) Q: We note from the Company's half-year results announcement for the previous corresponding period (six months period ended 30 June 2001) made on 24 August 2001 that the figure for the item "Other income including interest income" was S$4,239,000. The Company has explained in the Results Announcement that "Other income" in respect of the previous half year includes the exceptional item under 2(c) of S$4,927,000. Explain the reasons for the reclassification of the remaining difference of S$1,897,000 (ie. S$11,063,000 – S$(4,239,000 + 4,927,000)) under "Other income including interest income" for the previous period in the Results Announcement:-

A: The inclusion of $1,897,000 under "Other income including interest income" is to conform to the classification of the components of "Other income" in the profit and loss account for the year ended 31 December 2001 as presented in the Company's 2001 Annual Report. This amount includes numerous miscellaneous income such as income arising from repairs and maintenance services rendered to tenants, compensation by tenants for premature termination of office leases and discounts arising from bulk purchase of computer hardware.

The Group will continue to adopt this new classification in future announcements of results.

(b) Q: The reasons for the significant decline in turnover from technologies (computers) business:-

A: The decline in turnover in the technologies business by $22.95 million (45%) is attributable to the general weakness in the economy as well as the absence of major contract sales to government agencies in the previous corresponding half year.

(c) Q: Explain the 11% decline in selling and distribution expenses:-

A: The decline in selling and distribution expenses by $1.3 million (11%) is attributable mainly to lower sales in the technologies (computers) business and lower advertising and promotion expenses in the travel business.

(d) Q: It is stated that the current weak economic sentiments and excess supply of office space in Singapore will continue to put pressure on rental and capital values for the property segment. Give a commentary on any known factors or events that may affect the group in the next reporting period for the other business segments:-

A: Contributions from the detergent, travel and technologies (computers) businesses to the Group's pre-tax profit are not significant. The economic conditions in which they operate are expected to remain stable.

(e) Q: Breakdown of current assets and current liabilities of the Group and the Company as at 30 June 2002 and 31 December 2001:-

A: The current asset and current liabilities are made up as follows:

The amounts due to bankers are drawn from revolving credit facilities. The Group does not envisage any problem in continuously rolling over these loans as and when they mature.

Susie Tan,
Company Secretary
29/08/2002