Consolidated Statement of Comprehensive Income
For the financial year ended 31 December 2009 (“FY2009”), the Group recorded a 24.5% or $12.5 million increase in revenue compared to the previous corresponding financial year (“FY2008”), mainly due to the contribution of revenue from the Peach Garden group of restaurants, operated by PG Holdings Pte. Ltd., the acquisition of which was completed by the Group and as announced on 12 December 2008.

The Group posted a profit before tax (excluding minority interest) and a profit after tax of $930K and $396K respectively for FY2009 as compared to a loss before tax (excluding minority interest) and a loss after tax of $854K and $942K respectively for the corresponding FY2008 in line with the increase of revenue and contribution from the Peach Garden group of restaurants.

Peach Garden was acquired on 12 December 2008, and therefore, the full year financial statements of Peach Garden Group of Restaurants were consolidated with the Group‟s financial statements for the first time in FY2009, as compared to only half of the Peach Garden Group of Restaurants' December 2008 financial statements which were consolidated in FY2008. As a result, Marketing and Distribution costs, Administrative expenses (inclusive of depreciation expenses) and Other expenses increased by 36.9%, 32.5% and 23.7% respectively in comparison to the corresponding FY2008.

Other Credit/(Charges) has turned from a charge of $502K for FY2008 to a credit of $725K for FY2009 due mainly to the Government Grant of Job Credits received and no allowance made for impairment on trade and other receivables in FY2009. The increase in finance costs of $104K or 173.3% was mainly due to increase in bank borrowings during the financial year ended 31 December 2009.

Statement of Financial Position
Property, Plant and Equipment registered an increase of about $3.1 million. The increase is mainly due to the cost of investment incurred for the setup of a new Peach Garden restaurant, two food courts and two new Lerk Thai restaurants of approximately $1.5 million, $0.9 million and $0.7 million respectively during FY2009.

The Group had invested an amount of $116K, equivalent to RM300K, in an associate company, LerkThai (M) Sdn. Bhd., in Malaysia during FY2009. The investment in associate represents 30% of the total shareholding of LerkThai (M) Sdn. Bhd., which is responsible for the development of LerkThai chain of restaurants in Malaysia.

During FY2009, Intangible assets increased by $454K mainly due to the additional payments of $218K for the technical know-how acquired from a Japanese company to set up and operate Café A971 and $236K increase in the intangible assets arising from the acquisition of Peach Garden restaurants.

Current assets increased from $13.4 million to $18.4 million mainly due to the increase in cash and cash equivalents as a result of increase in bank borrowings, and increase in trade and other receivables due to increase of revenue during FY2009.

The increase of $8 million in total liabilities is mainly due to the increase in bank borrowings of $5 million and Trade and Other Payables of $3 million which was in line with higher revenue recorded during FY2009.

Statement of Cash Flow
The Group‟s operations in FY2009 generated a cashflow of $4.2 million from operating activities as compared to a cashflow of $1.0 million from operating activities in FY2008. The improvement in operating cash receipts from revenue and the positive cashflow from the Peach Garden group of restaurants are the major contributing factors.

The increase of cash used in investing activities is mainly due to the payment of technical know-how acquired from a Japanese company and the investments in new outlets of a Peach Garden restaurant, 2 LerkThai restaurants and the Universal Dining food courts established during FY2009. The increase in cash from financing activities is mainly due to the increase in bank borrowings, which were used to finance the opening of new outlets of a Peach Garden restaurant, 2 LerkThai restaurants, the Universal Dining food courts and/or
working capital.