Report from L&T.

Value destruction at Lifebrandz since its listing 4 years ago is simply amazing, as the company goes from one "concept" to another ( slimming products, nails spa, ministry of sound; and who knows what’s coming up next as management looks ahead to Singapore’s inaugural F1 race next Sep), ie one write-off after another, thereby piling up losses.

The company reported $2.05 mln loss for Q3 ended Apr ’08, bringing the total loss for the first 9 months to $2.84 mln. NTA is now only 2.7 cents a share, a halving from 5.49 cents at end Jul ’04. Cash continued to dwindle to $13.4 mln at end Apr ’08, from $30 mln at end Jul ’04. (Note the company raised $14 mln in Jan ‘07 from the placement of 122 mln new shares at 11.5 cents each.)

Rentals and Advertising are 2 major cost items for Lifebrandz, totaling $7.7 mln in the 9 months ended Apr ’08, a quarter of revenue.

Lifebrandz’s IPO in 2004 was priced at 20 cents each, raising $26 mln. After posting profit of $9.6 mln for ye Jul ’04, it has been downhill all the way, posting $21.92 mln loss in ye July ’06, $1.69 mln in ye Jul ’07.

We have had an AVOID since the listing of the company.