Final Results for the year ended 31 December 2016

For immediate release

Final results

29 June 2017

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

NEW TREND LIFESTYLE GROUP PLC

("New Trend" or "the Group" or "the Company")

Final Results for the year ended 31 December 2016

New Trend Lifestyle Group plc (AIM: NTLG), the Singapore-based Feng Shui products and services group, today announces its audited final results for the year ended 31 December 2016.

CHAIRMAN'S & CEO'S STATEMENT, INCLUDING FINANCIAL REVIEW

Background and summary of trading performance

Trading conditions in Singapore remained tough throughout the year, as we expected and highlighted at the time of our interim results in September 2016. The performance in the year was poor, and the Group continued with its sales and marketing initiatives in Singapore to bolster sales, whilst maintaining a tight control on costs.

The Group has been through significant change during the year. In June 2016, several Board changes occurred, with Robert Goddard resigning, and Greg Collier, Bo Yee Nancy Leung and Chi Chiu Leung appointed to the Board. This was accompanied by a change in our Nominated Adviser, and a focus on a new strategy designed to seek acquisitions to restore the Group to overall profitability. In August 2016, the Group successfully raised SGD479,000 (£300,000) net by way of a placing of new ordinary shares to support the new strategy.

The Company refinanced the convertible loan notes that were due for repayment on 31 December 2016. These were novated to New Trend Lifestyle Pte Ltd, and will be repayable on 31 December 2018 subject to certain provisions.

Trading

Sales in the year were SGD5,512k (2015: SGD7,852k), a decline of 29.8%. The Group loss before tax from continuing operations was SGD1,821k (2015: SGD1,150k), mainly as a result of the sharp decline in sales, but this loss was mitigated to a degree by the cost reductions achieved by the Board during the year.

The loss attributable to China was reduced to SGD344k (2015: SGD407k).

Costs in the UK were reduced to SGD356k (2015: SGD515k).

Balance sheet

Net inventories decreased to SGD683k (2015: SGD864k).

The Company raised SGD479k net in August 2016, to ensure that it had sufficient cash reserves to help implement its strategy of identifying new acquisitions where the Company will be required to undertake due diligence and incur travelling and other related costs.

Cash flow

Cash in hand at the year end was SGD2,390k (2015: SGD2,854k), and the Group continues to manage its cash within its available resources.

CURRENT TRADING AND OUTLOOK

In March, we reported that sales in the first two months of this financial year were significantly down on the same period last year, and this trend has continued for the rest of the first quarter. The Company remains committed to developing new sales and marketing initiatives to generate revenue, whilst tightly controlling our costs and managing our cash. The Singapore retail market continues to be very challenging, and these tough conditions are expected to continue for the foreseeable future.

Over the last 12 months, in line with our stated strategy, the Board has evaluated several potential acquisition targets, however, to date, none of these have been suitable for the Company to take forward. The Directors are escalating their efforts on sourcing a suitable acquisition and will update shareholders with progress as and when appropriate.

POST BALANCE SHEET EVENTS

There were no significant post balance sheet events.

Gregory Collier Phang Song Hua

CHAIRMAN CHIEF EXECUTIVE

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Included in direct costs is an amount of SGD 457,000 (2015: SGD 544,000) related to commission costs.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONSOLIDATED STATEMENT OF CASH FLOWS

Cash and cash equivalents (which are presented as a single class of assets on the face of the balance sheet) comprise cash at bank and other short-term highly liquid investments with maturity of three months or less, as adjusted for any bank overdrafts.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

NOTES:

1. General information

New Trend Lifestyle Group Plc is a company incorporated in England on 21 March 2012 under the Companies Act 2006 but domiciled in Singapore. It was listed on the AIM market on 28 June 2012.

2. Basis of preparation and significant accounting policies

The consolidated financial statements of New Trend Lifestyle Group Plc have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (IFRS's as adopted by the EU), IFRS Interpretations Committee and the Companies Act 2006 applicable to companies reporting under IFRS. The consolidated financial statements have been prepared under the historical cost convention, available-for-sale financial assets, and financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3.

3. Notes to the Consolidated Financial Statements

The notes to the consolidated financial statements, which are an integral part of these consolidated financial statements, are contained in the full Report and Accounts for New Trend Lifestyle Group Plc.

4. Availability of the Report and Accounts

A copy of the Company's Report and Accounts for the year ended 31 December 2016 will be posted to shareholders today and will be available on the Company's website: www.newtrendlifestylegroup.com.

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