No Signboard's Q1 losses widen to S$1.21 million

CATALIST-LISTED restaurant group No Signboard Holdings saw its losses balloon in the first quarter on the back of depreciation and amortisation expenses as new accounting standards were adopted, according to unaudited results released on Friday.

The group is now bracing itself for a fall in Chinese visitor numbers and lower consumer spending from this quarter onwards - no thanks to the Covid-19 epidemic that began in mainland China - on top of the lower average spending per customer that it is already grappling with.

The net loss for the three months to Dec 31, 2019 widened to S$1.21 million, from S$574,000 in the year before, even as revenue rose by 6.9 per cent to S$5.99 million.

Still, turnover contributions from the core seafood restaurant business fell on the two-month closure of one outlet for major renovation works, while the beer line, which in 2018 prompted an impairment charge, "declined significantly" in a slip attributed to industry competition.

No specific breakdown of revenue segments was given. No Signboard, which mainly operates in Singapore and opened its first overseas outlet in Shanghai in late 2019, also bought Danish Breweries in 2017 to diversify into the beer business.

No Signboard clocked a loss per share of 0.26 Singapore cent, worse than the previous year's 0.12 Singapore cent, while net asset value slipped to 3.34 Singapore cents a share, against 3.66 Singapore cents as at Sept 30, 2019.

No dividend was recommended for the period, unchanged from the year before, which the board pointed out was because "there are no distributable profits for the period".

But the group said in its outlook statement that despite challenges such as the Covid-19 outbreak, it would look to expand its food and beverage business both in Singapore and abroad.