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GS Holdings narrows full-year loss by 8% to S$3.6m

LOWER cost of sales and administrative expenses, as well as additional government grants helped GS Holdings narrow its full-year net loss even as revenue fell, the centralised dishwasher firm announced on Tuesday night.

For the twelve months ended Dec 31, net loss shrank by 8 per cent to S$3.55 million from a net loss of S$3.85 million in the year-ago period. This translated to a loss per share of 2.69 Singapore cents, from a loss per share of 2.91 Singapore cents last year.

The counter last traded at 25.5 Singapore cents apiece on Feb 21.

No dividend has been declared, unchanged from the preceding year.

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Revenue fell 15 per cent to S$8.45 million from S$9.92 million a year earlier. This comes as certain coffee shops did not renew their contracts after their initial contacts expired, and there were sales returns from customers. In addition, certain sales rebates were granted to customers, and a key customer with an average monthly sales of S$45,000 went into liquidation in September last year, the company said.

Overall, cost of sales fell by about S$1.5 million, mainly attributable to a decrease in revenue, as well as restructuring exercises undertaken by the group, said GS Holdings.

Administrative expenses also fell - by S$167,000 - mainly due to the resignation of some management and office staff as a result of the restructuring.

Separately, other income rose by about S$188,000 due to additional government grants and incentives received in FY2018, the company said.

Looking ahead, GS Holdings expects the opening of Changi Airport's Terminal Four and the upcoming Jewel project to boost revenue contributions for FY2019.

GS Holdings also signed a letter of acceptance on Feb 13 to provide centralised dishwashing and table cleaning services to Marine Parade Central hawker centre from May onwards. The project includes 50 hawker stalls, and will increase the group's revenue for the next fiscal year, it said.

The company also announced last month a joint venture to expand into the food and beverage business.