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FlNANClAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2008

Income Statement

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Balance Sheet

Review of Performance

Income Statement

Revenue for the year remains stable at S$78.1 million as compared to 2007 of S$77.7 million excluding S$136.7 million of PPC, being a one off contract in 2007. The integrated core business was lower than the corresponding year due to the weakening of Australia Dollars and Sterling Pound that accounted for a translation drop in revenue of approximately 2.9% or S$1 million for Australia Dollars (average exchange rate in 2007 A$1 to S$1.263 vs 2008 A$1 to S$1.227) and 12.9% or S$3 million for Sterling Pound (average exchange rate in 2008 £1 to S$3. 013 vs 2008 £1 to S$2.669).

Group gross profit margin grew marginally by 1% from 33.7% or S$26.2 million in 2007 (total gross profit margin including PPC was S$28 million) to 34.6% or S$27 million in 2008. This is attributable to the group's good strategic plan on timely procurement of materials and the ability to maximise the selling price.

On the contrary, the group operating profits suffered an exchange loss of S$1.90 million as opposed to a gain of S$1.19 million in 2007 due to the abrupt weakening of the Australian Dollars and the Sterling Pound in the later part of 2008. The exchange loss is included in other income/(loss) in the annoucement.

Overall Net Profit before tax declined from S$7.5 million in 2007 to S$4.1 million in 2008.

Balance Sheet

Trade Receivables and Amount due to related companies (trade) decreases are in line with the discontinued copier paper trade.

During the first half year, the company called back the retained cash of GBP 1.5 million from a 100% owned UK subsidiary through a share reduction. Proceed of the funds would be used, amongst other, for expansion of the operation and for working capital of the growing sourcing business. In relation to this, a proportionate provision for impairment on the Investment of S$0.86 million was reversed to Profit and Loss account at company level.

The negative foreign currency translation reserve of S$8.9 million is the result of translation of overseas subsidiaries balance sheets during consolidation.

Commentary On Current Year Prospects

Despite the "negative" outlook by all major institutions for the coming year, the Group is confident about maintaining its baseline Revenue by way of marketing, product penetration via strategic tie-ups and expansion of "Gift" market which will create additional growth in this category. Additionally, the continue launched of new Global Brands products will place us in a stronger position for when the market returns back to more favourble conditions.

The continued monitoring of raw materials prices, effective loading plans and production efficiency control are the group objectives to bring the costs down to attract and achieve a bigger market share.

Putting together all prospective plans, the Directors believe that baring any unforeseen circumstances, the group will remain an on going concern.