KPMG issues disclaimer on Vibrant's financial statements

Singapore

VIBRANT Group's independent auditors, KPMG, issued a disclaimer of opinion on its financial statements for the year ended Apr 30, 2018, and said there were material uncertainties which may cast significant doubt about the Group's and the company's ability to continue as a going concern.

This came as Vibrant separately announced its unaudited results for the second quarter and half year ended Oct 31, 2018.

KPMG said it has not been able to get enough appropriate audit evidence to provide a basis for an audit opinion on the financials ended in April and did not express an opinion.

It could not get evidence over the account balances of Blackgold Group due to the fire that destroyed its accounting records and the special audit by investigating auditors is not completed.

KPMG has also noted that as of April 30, Vibrant's current liabilities include loans and borrowings of some S$160.3 million, which were being classified as liabilities because the company and some units are in breach of certain loan covenants.

Waivers for this will lapse at year-end, or at the issuance of the Special Audit Report, whichever is earlier, and these loans will become due.

KPMG also added that Vibrant's ability to generate sufficient cash flows to pay its debts as and when they become due over the next twelve months is primarily dependent on the group's current discussions to sell and leaseback a property at 121 Banyan Drive for what is anticipated to be at least S$220 million.

Net profit in the second quarter was S$1.18 million; the group's restated results for the quarter a year ago stood at S$1.35 million.

This came as revenue nearly quadrupled to S$167.4 million, from S$43.8 million on the back of its Master-Riviera Project.

Though profit for the period was S$8.85 million, up from S$1.05 million a year ago, the profit recognition from Master-Riviera Project caused profit attributable to non-controlling interests to also increase significantly in 2Q2019.

Earnings per share stood at 0.17 cent for the quarter, down from 0.20 cent a year ago.

For the half year, Vibrant booked a S$1.92 million net profit, compared to a restated net loss of S$63.7 million in the previous half year. Its revenue stood at S$212 million, up from S$87.2 million the same half year a year ago. Earnings per share for the half year was 0.28 cent, from a loss per share of 9.61 cent previously.

No dividend was declared.