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No Signboard in the red with S$2.3m full-year net loss
A MASSIVE impairment charge dragged F&B Group No Signboard into the red for the fiscal year 2018.
Net loss for 12 months ended Sept 30 was S$2.31 million, compared to a net profit of S$7.72 million for the previous year.
Loss per share for FY18 was 0.5 Singapore cent, a reversal from earnings per share of 1.67 Singapore cents for FY17.
Revenue went up by 8.6 per cent to S$26.5 million as increased contribution from the beer business more than offset a decline in the restaurant business.
The firm had issued a warning on Nov 22 that it would record losses owing to a massive writedown.
It took in S$4.31 million of impairment charges for FY18 after the restructuring and rebranding of its beer business.
Raw materials and consumables used and changes in inventories also surged 51.7 per cent to S$9 million, while the group's employee benefits expenses rose 53.3 per cent to S$8.5 million.
Other operating expenses went up by 90.2 per cent to S$3.8 million on increased compliance costs.
The group, which debuted on the Singapore Exchange's Catalist last November, incurred S$1.1 million of initial public offering expenses during FY18.
Despite its dismal financial performance for FY18, the group said that it is growing and expanding. It plans to open two more outlets under its new fast food brand Hawker by early 2019 and one outlet under its hotpot brand Little Sheep by the end of this year.
The company has secured an exclusive master franchise agreement to develop and operate "Mom's Touch" restaurants in Singapore and Malaysia, while it continues to work on the development of a new casual dining concept.
Outside of Singapore, the group has identified premises for a new restaurant in China and is in the final stages of negotiating the terms of a lease for the premises.
The beer business that is under restructuring will see the addition of new SKUs (stock keeping units) by yend.
No Signboard Holdings closed 0.3 Singapore cent down at 13.7 cents on Thursday.