CHAIRMAN’S MESSAGE


Dear Shareholders

For this year under review, Cortina Holdings Limited has taken great efforts to maintain the momentum of success that we have achieved in our rich history of operations.  

On behalf of the Board of Directors, it is with a great sense of accomplishment that I present to you the Group’s results for the financial year (FY) ended 31 March 2008. 

Overall, the year in review has seen an increase of 200.3% to $9.5 million in the Group’s net profit after tax – a substantial development as compared to FY 2007.

Year in Review
This year marks our 35th year of operations – a milestone indeed for the Group and our heritage of success as a leader in the luxury timepiece industry. Building upon our many successes over the years, this year in review sees the Group in substantial growth and development to capitalise on favourable opportunities and conditions prevalent within the region.

For FY 2008, Cortina Holdings Limited has taken many great lengths to ensure the retail proficiency and operational effectiveness of our boutiques within the Southeast Asian region.

Overall Market Performance
The Singapore and Hong Kong markets have contributed greatly to our Group’s overall retail performance for FY ended 31 March 2008.

Our other operations in Malaysia and Taiwan have delivered substantial improvements in terms of retail performance. Despite the political conditions in Thailand, we remain focussed on developing our capabilities within the country, as can be seen from our impending expansion into the Central World Plaza in Bangkok.

Our Group’s sales were $238.6 million this year, higher than the last corresponding year by 20.5%. This is largely attributed to stronger retail performance in Singapore, Hong Kong and Malaysia. We believe that a key driving factor to market favourability within these countries is from sustained levels of affluence and a strengthening of the Southeast Asian economy.

Apart from strong market favourability, increased retail shop space was also a contributing factor to the Group’s reported higher revenue. On top of the aforementioned achievements, sales through our distribution channels have seen a noted degree of success, especially due to more favourable sales mix through brands such as Concord, Milus, Wyler and Porsche Design making meaningful contributions to the Group’s results.

Retail Outlets
For this year, the Group has been able to strengthen our retail capabilities through the addition of new outlets within the Singapore and Malaysia markets respectively. These strategic movements have done well to contribute to our company’s overall increase in revenue.

In our Singapore market, the opening of a 560 square-foot outlet in Centrepoint and renovations to our boutique in Raffles City have greatly enhanced our retail capability within the country.

The new Centrepoint boutique, unveiled in July 2007, houses a total of 15 luxury brands and is noted as Cortina Watch’s most compact boutique amongst its stable. With lavish décor and luxurious furnishings, this new boutique exemplifies our offering of a cosy environment for shoppers to appreciate a wide range of internationally recognised luxury brands, all under one roof.

This year has also seen two other additions to the Cortina family of boutiques – through the opening of the first Rolex/Tudor boutique in Gurney Plaza, Penang, in September and the first Blancpain boutique at Raffles Hotel Shopping Arcade in November.

We have strengthened our operations in Malaysia through the opening of a Rolex/Tudor boutique in Gurney Plaza, Penang – allowing us to be closer with our customers there.

Spanning 1,447 square feet and set in the most prestigious hotel in Singapore, the Blancpain Boutique at the Raffles Hotel Arcade houses an extensive collection of haute timepieces, as well as its reception and workshop for after sales service.

Together, these boutiques will do well in providing aficionados the luxury of exploring the various masterpieces on display in their respective showcases.

Looking Forward
As Cortina Holdings Limited flourishes into another year of prosperity and sustained achievement, we aim to build upon our role as a leading player in the luxury timepiece industry through the inclusion of new additions to our line of boutiques and by keeping up with our belief in the delivery of luxury timepieces through a customer-centric service approach.

The Singapore Retailers Association awarded Jewellery Time 2006 with the title of Best Retail Event of the Year in Oct 2007. Held between 19 to 29 October 2006 at the Paragon Atrium, this remarkable title bears testament to the high standard of service quality that presents itself throughout all of our establishments. To build upon this success, it is with great pride that I announce the return of Jewellery Time to the Paragon Shopping Mall in October 2008. Without a doubt, I am confident that this year’s exhibition will do well to carry on the evident success we have witnessed from Jewellery Time 2006.

Apart from the showcasing of the finest luxury timepieces through our Jewellery Time exhibitions, our customers and other luxury timepiece enthusiasts can look forward to the privileges of being able to appreciate their favoured masterpieces in three new locations in the year to come.

Scheduled for completion in the final quarter of 2008 and 2009, we will be unveiling a total of five new boutiques in Singapore. Three of the new boutiques will find themselves placed in the heart of Orchard road – namely, our much anticipated Longines flagship boutique at Wisma Atria, followed by a Patek Phillip boutique and another multi-brand boutique at the upcoming ION Orchard retail concept. The remaining two, a Patek Phillipe boutique and a boutique featuring Concord timepieces, will find their home at the spectacular Marina Bay Sands Integrated Resort.

The Group retains a keen eye on newer markets for further expansion and is further developing its presence within existing markets through the establishment of boutiques in the Central World Plaza in Bangkok and the iconic 1Borneo hypermall in Kota Kinabalu. Further expansion to our boutique in Gurney Plaza can be anticipated – and this expansion will do well to build upon the luxurious presence we have established in Penang thus far.

With our organisation’s track record of success as an industry leader, the Group remains committed to meeting the various challenges within our markets with great confidence and commitment.

Continued economic growth and rising affluence within the Southeast Asian region is also a key factor that drives our organisation onwards in arriving at the next height of luxury and excellence.

In Appreciation
My heartfelt gratitude goes out to our management, staff, shareholders, customers and business partners for their continued support and encouragement.

With continued support from these parties, along with my fellow Board Members, it is my sincere belief that we can further contribute to the rich heritage of Cortina Holdings Limited.

Although every path brings with it newer challenges to meet, I remain confident that, through our collectively unified passion and dedication, we will be able to look upon every new horizon with confidence in our capability to seize whatever opportunities may come our way.

Thank you.



Lim Keen Ban, Anthony
Chairman & Managing Director



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