Headquartered in Singapore, SGX-listed F J Benjamin Holdings Ltd. (FJB) builds in-house and develops interpolitical lifestyle and effeminacy infamys opposing Asia and new-fangledly in the Western traffics too. Delay a portfolio of aggravate 20 notoperative infamys, the clump divides itself into lewd centre callinges:
1. Effeminacy and Lifestyle Guise Retailing and Distribution;
2. Timepiece Distribution;
3. Design and Manufacturing of their in-house infamy RAOUL .
Investing in Lifestyle Concepts Section I: Assiduity Analysis SWOT Analysis Strengths Wide vend network FJB effects 191 provisions opposing Singapore, Malaysia, Hong Kong and Indonesia in superexcellent locations to prepare to its recompense customers and tourists and succor support the competitiveness of the Group. Wide mixed effeminacy and lifestyle infamy portfolio The infamy portfolio comprises aggravate 20 iconic effeminacy and lifestyle infamys. A mixed portfolio of scaloperative infamys succors the Clump appease the vulnerability of effeminacy infamys in an economic downturn.
Multilingual vend staff improves customer employment
FJB believes in investing heavily in vend staff trailing to acception employment capacity and speech success to promote tourists who scrutinize the provisions from different regions. Strong redress quibble and express coin career authorize FJB to consummate its CAPEX plans FJB supported SGD7. 7m of net coin at the end of FY2012 resisting incurring consummate expense prominence by 8% due to the inauguration and refurbishment of provisions Weaknesses Geographic dissonance and pitdeccontinuity to exalted tax blames FJB Operates in 190 provisions opposing the cosmos-people.
With manifold provisions located in Malaysia and China, where the conducive tax blame is hinder to 30%, FJB faces a exalted tax mandible and thus inferior aggravateall pay. Greatly cyclical rights FJB’s rights are exaltedly cyclical and they inccontinuity to peak in the past stages of a cyclical upturn. This translates into a lavish of aggravate exposition during good-natured-natured times. FJB’s completion fruits acceptiond 38% YoY for FY 2007. Poor intercourse and deed in Australia, Europe and North America FBJ classifies it’s geographical limbs into South East Asia, North Asia and Other, which includes their franchised infamys in North America and Australia.
This limb has historically made up near than 2% of completion fruits. Opportunities Strong infamy call of RAOUL FJB’s proprietary infamy was one of the infamys topping the exalted guise predicament in a new-fangled Mystery Shopping Survey. It has developed well-mannered-behaved-behaved aggravate the delayedst few years as FJB was operative to discipcontinuity RAOUL’s infamy prize and extend the calling to Europe and the United States. New interpolitical infamys to acceleblame rights implied The Clump is instituted to adduce in affordoperative interpolitical guise infamys. Recently, the Clump signed an esoteric classification obligation delay the Padini Clump for VNC shoes to luck into the growing Indonesian traffic.
Threats Two-of-a-trade The superiority of FJB’s competitors opeblame delay abundant provision total (Esprit - 1,128, Dickson Concepts - balance than 1,000, WINGT - balance than 180, Metro - 879,000 adjust feet). The mollify of blogshops in the SE Asia keep to-boot acceptiond two-of-a-trade delayin the assiduity. Macroeconomic fickleness Macroeconomic fickleness menaceens enlargement. Grim economic notion cosmos-peoplewide poses an patent menace to FJB’s enlargement as it prepares to the recompense guise vending traffic. Porter’s Five Forces Greatly competitive climate
Our team analyzed the macroeconomic stipulations and the ateional characteristics of the guise vend assiduity, we keep secure that FJ Benjamin effects in a exaltedly competitive traffic. The abundantst drivers of two-of-a-trade are the step of competition, new entrants and the supplier dominion. Pitdeccontinuity to irrelevant circulation shocks and the menaces from competing callinges are material factors to contempdelayed out for. Buyer Dominion (High) Buyer Dominion (High) Supplier Dominion (Strong) Supplier Dominion (Strong) Substitutes (Moderate) Substitutes (Moderate) New Entrants (High) New Entrants (High)
Degree of Competition (Strong) Step of Competition (Strong) Manifold competitors offering diverse choices Low customer allegiance in vend assiduity Manifold firms competing for traffic distribute Saturated Traffic Price inflexibility Exalted emanation differentiation Exalted Consummate Outlay Deccontinuity in infamy discernment conciliate upshot in customer turnaggravate Deccontinuity in infamy discernment conciliate upshot in customer turnover
Increasing opulence may coerce to consumers using recompense infamys Healthy kindredships delay suppliers to protect franchises Constantly changing guise trends Pitdeccontinuity to irrelevant circulation shocks Exalted trafficing expense needed to support infamy discernment Section II: Accounting Analysis & Adjustments Accounting Analysis – Faithful truthfulness
The auditors’ tidings demonstrated that the totalitys exhibit a penny and serene object of the audience. It is prominent that it was exaltedlighted in the corpoblame governance tidings that there are no employees who are kinsfolk of directors remunerated balancehead $150,000. In analysis, all members of the nomination, reward and audit committee are recalcitrant non-executive directors. There is to-boot a whistle-blowing cunning for the Group, which encourages a exalted smooth of non-tolerance counter robbery. There was to-boot abundant exhibition of careful transactions between its subsidiaries and its newly acquired consort previous to the worthiness.
However, a implied engagement of emolument in the area of the lavish conduct committee, which usually comprises superiority of non-executive directors, but in the event of MPM, is managed by executive directors. There strength be the possibility of them not being extrinsic in assessing the lavishs that the audience faces. Understandability There is thoroughgoinggoing interpretation of totalitying policies adopted in the notes, supplemented delay definitions of totalitying stipulations where misappropriate. Time the proceeds and liabilities of consorts are mentioned, no exalt breakdown is attached as to the comprisal of them.
Assets and liabilities of subsidiaries are to-boot lukewarm from the notes. This applies for jointly coerceled entities too. It was impenetrable to indicate where personnel expenses and the exhibitions subordinateneathneathneath emolument antecedently pay tax deccontinuity into the pay declaration, making it confusing how to totality for them. The coin aspect in the redress quibble and coin career declaration differed due to urban deposits, bank aggravatedraft and pledged urban deposits and bank redresss, making speculation of financial declarations relatively untimely. Comparability
There is unobstructed exhibition when amendments are made to FRS, accompanied delay a declaration whether the veer is applied retrospectively or prospectively, as well-mannered-behaved-behaved as the materiality of the amounts exhibited. Where veers are to be expected, these are normal antecedentlyhand delay their conducive limit of inauguration normal methodically. Details of other unobstructed expenses were supposing in the notes from 2009 to 2011, but lukewarm in the notes in 2007 and 2008, making congruousity of minute expenses arduous. Limb tidingsing was availoperative to enoperative investors to parallel opposing companies that strength be congruous to MPM in one of their calling limbs.
Accounting Distortions Adjusted Non-recurring items The notes were inspected to authenticate continuity items that could impliedly be non-recurring and should thus be removed from the financial declarations to stipudelayed a unobstructeder paint of the protectoperative rights of the audience. Items symmetrical as non-recurring interjacent bad debits written off, siege in consort, and other expenses in which no details were attached. Other likely non-recurring items interjacent synod transfer accepted, though this could haply revert due to the achievement of the stipulations subordinateneathneathneath the Capability Development Scheme in 2010.
Foreign exveer permake was to-boot cogitation of to be revertring due to the adit into eager circulation contracts. Equity to regular league MPM’s conducive Marco Polo Shipping Co Pte Ltd holds a 49% jeopard in PT Pelayaran Nasional Bina Buana Raya (BRR), an Indonesian shipping audience which engages in ship exercise, chartering and transshipment of vessels. The 49% jeopard is the acme equity jeopard authorizeed to be taken by a irrelevanter delayout solemn the ability of BBR to ply the Indonesian waters as a domiciliary shipping audience.
By the meaning aggravate make truth, Marco Polo has conducive coerce aggravate BRR, thus we carried out regular league on the being. Joint lucks were to-boot dim to stipudelayed a balance accublame paint of the clump. Unobstructed leases MPM has sundry unobstructed leases delay lease limit not amounting to balance than 5 years. The leases were consummateized based on the implied emolument blame in the finance leases, ate for 2008, where a aspect of emolument expenses aggravate opening hanker message debit was used, due to the neglect of finance leases in 2007.
Capitalizing the unobstructed lease would upshot in a balance accublame truthfulness of liabilities and proceeds. Guarantees and litigations MPM was complicated in two lawsuits aggravate the limit subordinateneathneathneath purview. One complicated $106,000 for past donation of vessels time the other complicated arbitration counter a conducive of the Audience in kindred to assured charter edge disputes. These were interjacent in contribution liabilities during 2007 and 2008 respectively, though in the theory of the directors, twain lawsuits had no worthiness or account and would not keep financial application on the audience.