Challenger Technologies : Full year dividend up 2% year-on-year; new flagship store to commence operating in May 2017

Challenger Technologies Limited

FULL YEAR FINANCIAL STATEMENT

AND DIVIDEND ANNOUNCEMENT

FOR THE FINANCIAL YEAR ENDED

31 DECEMBER 2016

Co Reg No: 198400182 K

CHALLENGER TECHNOLOGIES LIMITED
FULL YEAR FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016
1(a)	A consolidated statement of comprehensive income (for the group) together with a comparative statement for the corresponding
period of the immediately preceding financial year
Consolidated Statement of Comprehensive Income
Group
3 months ended			Change	12 months ended		Change
31.12.2016		31.12.2015		31.12.2016	31.12.2015
$'000	$'000	%	$'000	$'000	%
Revenue 83	,413	95,588		(13)	339,441	352,245	(4)
Other Items of Income
Interest Income	101	78	29	505	372	36
Other Gains [note (A)]	365	306	19	1,168	1,303	(10)
Other Items of Expense
Changes in Inventories of Finished Goods (1	,232)	(1,783)		(31)	(449)	3,259	(114)
Purchase of Goods and Consumables (64	,193)	(71,394)		(10)	(268,359)	(282,133)	(5)
Other Consumables Used	(210)	(64)	228	(724)	(530)	37
Depreciation Expense	(979)	(1,078)		(9)	(4,256)	(4,274)	(0)
Employee Benefits Expense (6	,291)	(5,845)		8	(25,212)	(23,127)	9
Other Expenses [Note (B)] (5	,823)	(6,964)		(16)	(24,355)	(25,280)	(4)
Other Losses [Note (A)] (1	,448)	(68)	2,029	(2,843)	(100)	2,743
Profit Before Tax from Continuing Operations 3	,703	8,776		(58)	14,916	21,735	(31)
Income Tax Expense	(646)	(1,277)		(49)	(2,786)	(3,449)	(19)
Profit from Continuing Operations, Net of Tax 3	,057	7,499		(59)	12,130	18,286	(34)
Other Comprehensive Income / (Loss):
Items that May Be Reclassified Subsequently to Profit or Loss:
Exchange Differences on Translating Foreign Operations,
Net of tax	28	(164)		(117)	(47)	(375)	(87)
Gain on Available-for-sale Financial Assets,
Reclassified from Equity to Profit or Loss
as a Reclassification Adjustment	-	-	N.M.	37	-	N.M.
Available-for-sale Financial Assets, Net of tax	12	(118)		(110)	12	(118)	(110)
Other Comprehensive Income / (Loss) for the
Period, Net of Tax	40	(282)		(114)	2	(493)	(100)
Total Comprehensive Income 3	,097	7,217		(57)	12,132	17,793	(32)
Profit Attributable to Owners of the Parent,
Net of Tax 3	,017	7,648		(61)	12,285	18,248	(33)
Profit Attributable to Non-Controlling Interests,
Net of Tax	40	(149)		(127)	(155)	38	(508)
3,057		7,499		(59)	12,130	18,286	(34)
Total Comprehensive Income Attributable to
Owners of the Parent 3	,057	7,366		(58)	12,287	17,755	(31)
Total Comprehensive Income Attributable to
Non-Controlling Interests	40	(149)		(127)	(155)	38	(508)
Total Comprehensive Income 3	,097	7,217		(57)	12,132	17,793	(32)
Note:
Profit before income tax is arrived after charging/ (crediting) the followings:
Note (A) - Other (Losses) / Gains
Foreign exchange adjustment gains	70	146	(52)	65	447	(85)
Sundry income	295	153	93	1,103	849	30
Losses on disposal of plant and equipment	(81)	-	N.M.	(300)	(32)	838
Losses on disposal of available-for-sale financial assets	-	-	N.M.	(12)	-	N.M.
Provision for impairment on other financial assets (1	,139)	-	N.M.	(2,303)	-	N.M.
Inventories written off	(175)	(68)	157	(175)	(68)	157
Allowance / Reversal for inventories	(53)	7	(857)	(53)	7	(857)
(1,083)		238	(555)	(1,675)	1,203	(239)
Presented in profit or loss as:
Other Gains	365	306	19	1,168	1,303	(10)
Other Losses (1	,448)	(68)	2,029	(2,843)	(100)	2,743
(1,083)		238	(555)	(1,675)	1,203	(239)
Note (B) - Other Expenses
Rental expenses (3	,751)	(4,311)		(13)	(15,723)	(16,928)	(7)
Other operating expenses (1	,086)	(1,552)		(30)	(4,650)	(4,432)	5
Selling and distribution costs	(986)	(1,101)		(10)	(3,982)	(3,920)	2
(5,823)		(6,964)		(16)	(24,355)	(25,280)	(4)
N.M. = not meaningful

CHALLENGER TECHNOLOGIES LIMITED
FULL YEAR FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016
1(b)(i)	A statement of financial position (for the issuer and group), together with a comparative statement as at the end of the
immediately preceding financial year
Statement of Financial Position
Group	Company
31.12.2016 31	.12.2015	31.12.2016	31.12.2015
$'000	$'000	$'000	$'000
ASSETS
Non-Current Assets
Investment in Associate	-	-	-	-
Investments in Subsidiaries	-	-	8,072	5,153
Other Financial Assets	6,134	8,749	5,825	6,288
Property, Plant and Equipment	10,547	12,834	10,382	12,482
Total Non-Current Assets	16,681	21,583	24,279	23,923
Current Assets
Cash and Cash Equivalents	52,273	41,653	41,950	33,430
Trade and Other Receivables	5,772	5,780	6,602	6,555
Other Assets	5,019	4,961	4,860	4,799
Inventories	37,160	37,662	36,837	37,597
Total Current Assets	100,224	90,056	90,249	82,381
Total Assets	116,905	111,639	114,528	106,304
EQUITY AND LIABILITIES
Equity attributable to Owners of the Parent
Share Capital	18,775	18,775	18,775	18,775
Retained Earnings	60,567	57,430	63,876	58,028
Other Reserves	(242)	(244)	(71)	(120)
Equity, Attributable to Owners of the Parent	79,100	75,961	82,580	76,683
Non-Controlling Interests	408	704	-	-
Total Equity	79,508	76,665	82,580	76,683
Non-Current Liabilities
Deferred Tax Liabilities	22	22	-	-
Provisions	1,736	1,892	1,736	1,892
Other Liabilities, Non-Current	2,684	2,805	1,000	992
Total Non-Current Liabilities	4,442	4,719	2,736	2,884
Current Liabilities
Trade and Other Payables	22,221	18,344	20,380	16,968
Income Tax Payable	3,510	3,395	3,153	3,022
Other Liabilities, Current	7,224	8,516	5,679	6,747
Total Current Liabilities	32,955	30,255	29,212	26,737
Total Liabilities	37,397	34,974	31,948	29,621
Total Equity and Liabilities	116,905	111,639	114,528	106,304
1(b)(ii)	Aggregate amount of group's borrowings and debt securities
Amount repayable in one year or less, or on demand
Nil.
Amount repayable after one year
Nil.
Details of any collateral
Nil.

CHALLENGER TECHNOLOGIES LIMITED

FULL YEAR FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 31 DECEMBER 2016

1(c) A statement of cash flow (for the group), together with a comparative statement for the corresponding period of the immediately preceding financial year

Consolidated Cash Flow Statement

Cash Flows From Operating Activities 3 months ended 12 months ended

31.12.2016 31.12.2015 31.12.2016 31.12.2015

$'000 $'000 $'000 $'000

Profit Before Tax 3,703 8,776 14,916 21,735

Adjustments for:

Depreciation of Property, Plant and Equipment 979 1,078 4,256 4,274

Losses on Disposal of Plant and Equipment 81 - 300 32

Allowance for Impairment on Available-for-Sale Financial Assets 1,139 - 2,303 -

Losses on Disposal of Available-for-Sale Financial Assets - - 12 -

Interest Income (101) (78) (505) (372)

Net Effect of Exchange Rate Changes in Consolidating Foreign Operations 28 (164) (47) (375)

Operating Cash Flows Before Working Capital Changes	5,829	9,612	21,235	25,294
Trade and Other Receivables	983	872	8	(76)
Other Assets	259	314	(58)	50
Inventories	1,285	1,780	502	(3,182)
Trade and Other Payables	4,793	(4,005)	3,876	(11,470)
Other Liabilities	15 (2,339) (1,413) (2,171)
Net Cash Flows From Operations	13,164 6,234 24,150 8,445
Income Taxes Refund / (Paid)	330 (421) (2,671) (3,429)
Net Cash Flows From Operating Activities	13,494 5,813 21,479 5,016
Cash Flows From Investing Activities Interest Received	101	78	505	372
Increase in Available-for-Sale Financial Assets	-	(2,461)	(152)	(5,216)
Proceeds from Disposal of Plant and Equipment	11	-	11	-
Proceeds from Disposal of Available-for-Sale Financial Assets	-	-	501	-

Purchase of Plant and Equipment (447) (617) (2,416) (3,124)

Net Cash Flows Used in Investing Activities (335) (3,000) (1,551) (7,968)

Cash Flows From Financing Activities
Dividends Paid to Equity Owners	- -	(9,148)	(8,112)
Dividends Paid to Non-Controlling Interests	- -	(300)	(300)
Investment in a subsidiary by non-controlling interests	- 396	160	396

Repayment of Finance Lease (18) - (20) -

Net Cash Flows (Used) in / From Financing Activities (18) 396 (9,308) (8,016)

Net Increase / (Decrease) in Cash and Cash Equivalents	13,141	3,209	10,620	(10,968)
Cash and Cash Equivalents, Consolidated Statement of Cash Flows, Beginning Balanc	39,132	38,444	41,653	52,621
Cash and Cash Equivalents, Consolidated Statement of Cash Flows,

Ending Balance 52,273 41,653 52,273 41,653