Aspen says financial impact of restrictions on business operations unknown

ASPEN (Group) Holdings on Monday provided an update on its business operations, following the imposition of Phase 2 (Heightened Alert) in Singapore and a full movement control order (MCO) in Malaysia, as its property development, healthcare and food and beverage (F&B) sectors have been affected.

Singapore's restrictions began on May 16 and are set to conclude on June 13, while Malaysia's full MCO is in effect from June 1 to June 14. Aspen said that it was unable to quantify the extent of the financial impact of these restrictions on the earnings per share and net asset value per share of the group for the financial year ending Dec 31, 2021.

In its property sector, the group's headquarters and property sales galleries in Malaysia will be closed while staff work from home. Homeowners and unit owners of two of its properties will not be able to collect their keys until the full MCO is lifted.

However, the group has fulfilled its contractual obligations by obtaining the Certificate of Completion and Compliance on Beacon Executive Suites and issuing the notice of vacant possession to the purchasers within the stipulated timeline for delivery, it said.

Construction works for the ongoing projects will also cease during the full MCO, but is not expected to have any material adverse effect on its ability to fulfil its contractual obligation, it added.

In healthcare, subsidiary Aspen Glove falls under the essential economic and services sectors, which is exempt from the full MCO. It can continue operations during the period, with restrictions.

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Aspen Glove is currently operating with 60 per cent of its overall manpower capacity on a 24/7 basis using three teams working eight-hour shifts. It expects that its ability to fulfil its contractual obligations will not be materially affected.

It has previously sent a shipment of gloves to the US.

In the F&B sector, subsidiary Kanada-Ya SG is only providing takeaway and delivery options due to Singapore's ban on dining in. It has doubled its advertising and promotional efforts through online platforms.

On Monday, shares of Aspen were trading at 19.9 Singapore cents, down 0.6 cent or 2.9 per cent, as at 10.34am.