Jumbo Group board issues loss guidance for upcoming H1 2021 results amid virus woes

CATALIST-LISTED seafood restaurant operator Jumbo Group warned on Monday of an expected net loss for the first half-year to March 31.

The board blamed the impact of the "long-drawn Covid-19 pandemic", especially in its home market of Singapore, in a profit guidance on Monday.

"Despite efforts to rationalise overheads and operating costs, and year-on-year improvement in the performance of the group's business in the People's Republic of China, the decline in the group's revenue from its Singapore's business eclipsed the aforementioned positives," the directors said, citing "persistently muted footfall" at its outlets in Singapore.

Still, based on group balance sheet and liquidity, the board disclosed that Jumbo does not face imminent difficulty in meeting working capital needs. More details will be available in financial results slated for release by May 14.

Jumbo most recently reported a full-year net loss of S$8.17 million in 2020, a sharp U-turn from the profit of S$11.67 million in the year prior.

Shares closed flat at S$0.35 on Monday, before the announcement.