MODERN BEAUTY<00919> - Results Announcement
Modern Beauty Salon Holdings Limited announced on 06/07/2006:
(stock code: 00919 )
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 : 498,265 456,932
Profit/(Loss) from Operations : 143,477 126,743
Finance cost : 0 0
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 : 122,511 105,171
% Change over Last Period : +16.5 %
EPS/(LPS)-Basic (in dollars) : 0.2168 0.1948
-Diluted (in dollars) : 0.2163 N/A
Extraordinary (ETD) Gain/(Loss) : N/A N/A
Profit/(Loss) after ETD Items : 122,511 105,171
Final Dividend : 13.8 cents N/A
per Share
(Specify if with other : N/A N/A
options)
B/C Dates for
Final Dividend : 09/08/2006 to 15/08/2006 bdi.
Payable Date : 25/08/2006
B/C Dates for Annual
General Meeting : 09/08/2006 to 15/08/2006 bdi.
Other Distribution for : N/A
Current Period
B/C Dates for Other
Distribution : N/A
Remarks:
REORGANISATION AND BASIS OF PREPARATION
Reorganisation
Modern Beauty Salon Holdings Limited (the "Company") was incorporated in
the Cayman Islands on 19 August 2005. The shares have been listed on the
Main Board of the Stock Exchange of Hong Kong (the "Stock Exchange") since
9 February 2006. Pursuant to a group reorganisation ("Reorganisation") in
preparation of the listing of the shares of the Company on the Stock
Exchange, the Company became the holding company of the companies now
comprising the Group on 24 January 2006. The Reorganisation involved
companies under common control, and the Company and its subsidiaries
resulting from the Reorganisation are regarded as a continuing group.
Accordingly, the consolidated financial statements of the Group for the
year ended 31 March 2005 have been prepared using the merger basis of
accounting as if the Company had been the holding company of the Group
from the beginning of the earliest period presented.
Basis of preparation
The consolidated financial statements have been prepared in accordance
with Hong Kong Financial Reporting Standards ("HKFRS") issued by the Hong
Kong Institute of Certified Public Accountants. These consolidated
financial statements have been prepared under historical cost convention
except that financial assets and financial liabilities (including
derivative instruments) at fair value through profit or loss.
The preparation of financial statements in conformity with HKFRS 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 adoption of new/revised HKFRS
For the year ended 31 March 2006, the Group adopted the new/revised
standards and interpretations of HKFRS below, which are relevant to its
operations. The 31 March 2005, 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 12 Income taxes
HKAS 14 Segment reporting
HKAS 16 Property, Plant and Equipment
HKAS 17 Leases
HKAS 18 Revenue
HKAS 19 Employee benefits
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: Disclosure and Presentation
HKAS 33 Earnings per Share
HKAS 36 Impairment of Assets
HKAS 39 Financial Instruments: Recognition and Measurement
HKAS-Int 15 Operating Leases - Incentives
HKFRS 2 Share-based payment
HKFRS 3 Business Combinations
The adoption of new/revised HKASs 1, 2, 7, 8, 10, 12, 14, 16, 18, 19, 21,
24, 27, 33, 36, HKAS-Int 15 and HKFRS 3 did not result in substantial
changes to the Group's accounting policies. In summary:
- The adoption of HKAS 1 has affected the presentation of certain
disclosures.
- HKASs 2, 7, 8, 10, 12, 14, 16, 18, 19, 21, 27, 33, 36, HKAS-Int 15
and HKFRS 3 do not have any impact as the Group's accounting policies
already comply with the standards.
- The adoption of 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 income statement on a straight-line basis over the
period of the lease or when there is impairment, the impairment is
expensed in the income statement. In prior years, the leasehold land was
accounted for at cost less accumulated depreciation and accumulated
impairment.
- HKAS 24 has affected some other related-party disclosures.
- The adoption of HKASs 32 and 39 has resulted in a change in the
accounting policy relating to the classification of available-for-sale
financial assets. It has also resulted in the recognition of the
derivative financial instruments at fair value, the changes in the
recognition and measurement of hedging activities, the change in
recognition, measurement and offsetting certain financial assets and
liabilities.
- The adoption of HKFRS 2 has resulted in a change in accounting policy
for share-based payment.
Prior to this, the provision of share options to employees did not result
in a charge to the income statement. Following the adoption of HKFRS 2,
the fair value of share options at grant date is amortised over the
relevant vesting periods to the income statement.
The adoption of HKAS 32 and HKAS 39 resulted in:
2006
HK$'000
Increase in financial assets at fair value 67,979
Decrease in other investments 67,979
The adoption of HKFRS 2 resulted in:
2006
HK$'000
Increase in equity 444
Increase in staff costs 444
All changes in the accounting policies have been made in accordance with
the respective transitional provisions of the respective standards, which
require retrospective application to prior year comparatives other than:
- HKAS 39 - recognises all derivatives at fair value in the balance
sheet on 1 January 2005 and adjusts the balance to retained earnings as at
that date.
- HKAS-Int 15 - does not require recognition of incentives for
leases commencing before 1 January 2005.
- HKFRS 3 - prospective from 1 January 2005.
EARNINGS PER SHARE
The calculation of basic earnings per share is based on the Group's net
profit attributable to shareholders for the year ended 31 March 2006 of
HK$122,511,000 (2005: HK$ 105,171,000) and the weighted average of 565,
150,685 (2005: 540,000,000) shares in issue during the year. The weighted
average number of shares for 2005 was based on the assumption that the
Reorganisation has been completed on 1 April 2004.
The calculation of diluted earnings per share for the year ended 31 March
2006 is based on the Group's net profit attributable to shareholders for
the year of HK$122,511,000 and the weighted average of 566,517,087 shares.
The weighted average number of shares used in the calculation comprises
the 565,150,685 shares in issue during the year, as used in the basic
earnings per share calculation, and the weighted average of 1,366,402
shares assumed to have been issued at no consideration on the deemed
exercise of options granted under the Company's share option scheme during
the year.
No diluted earnings per share has been presented for the year ended 31
March 2005 as the Company has no dilutive potential shares.
CLOSURE OF REGISTER OF MEMBERS
The Register of Shareholders of the Company will be closed from Wednesday,
9 August 2006 to Tuesday, 15 August 2006, both dates inclusive, during
which period no transfer will be effected. In order to qualify for the
proposed final dividend and the entitlement to attend and vote at the AGM,
all transfers accompanied by the relevant share certificates must be
lodged with the Company's Share Registrar, Tricor Investor Services
Limited at 26th Floor, Tesbury Centre, 28 Queen's Road East, Wanchai, Hong
Kong not later than 4:00 p.m. on Tuesday, 8 August 2006.
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