Noel Gifts International falls into the red on higher operating expenses

Higher operating expenses dragged Noel Gifts International into the red to the tune of $419,000.

Revenue for the six months to Dec 31 fell by 3 per cent to $10.2 million.

Other operating income increased mainly due to grants received from government agencies.

The group's total operating expenses were 5.8 per cent higher at $5.79 million, mainly due to a one-time office relocation cost.

This resulted in a net loss, compared to a marginal profit of $3,000 in the same period last year.

Loss per share amounted to 0.41 cent while net asset value per share eased to 30.27 cents compared to 32.19 cents as at June 30.

The gift company said that market conditions remain difficult and challenging.

It will continue to focus on marketing and sales efforts toimprove gifts sales.

It will also continue with its efforts to reduce costs and improve margins.

Following a preliminary review of the group's performance over the Chinese New Year season, Noel expects to remain profitable for the full year.