No Signboard pares Q4, full-year losses on lower impairments, expenses
Uma Devi
RESTAURANT operator No Signboard on Wednesday (Nov 29) posted a net loss of S$582,102 for the fourth fiscal quarter ended September, versus a loss of S$2.3 million in the corresponding year-ago period.
This brings the company’s full-year loss to S$1.7 million, from a S$4.5 million loss in the prior year.
No Signboard has now made three financial results announcements in seven days – with a Q2 earnings report on Nov 23 and a Q3 report on Nov 28.
Trading in the shares of the company has been suspended since January 2022.
Revenue for the fourth quarter was down 30.9 per cent to S$631,521 from S$914,205. This was due to the absence of top line contributions from certain seafood restaurants owing to the closure of its Vivocity and Esplanade outlets in November 2021 and March 2022, respectively.
There was also no revenue from No Signboard’s quick-serve restaurants for the year to date due to the closure of its Mom’s Touch outlets, while the subsidiary Hawker QSR was placed under voluntary creditors’ liquidation in February last year.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Revenue was also adversely affected by Danish Breweries being put under voluntary creditors’ liquidation, as well as lower sales from its remaining outlets – Little Sheep Hotpot at Orchard Gateway and nosignboard Shen Jian at Northpoint – due to weaker consumer demand.
The group’s Q4 bottom line figures were helped by lower expenses. The group did not record any impairments on plant and equipment or right-of-use assets in Q4, compared to respective impairments of S$409,578 and S$1.3 million in the year-ago period.
Operating expenses, rental expenses and finance costs for the quarter also fell.
The company’s outlook statement was identical to that in its Q3 financial statements, where the group sounded a warning that the operating environment of the local food and beverage industry is expected to remain challenging in the next 12 months due to higher operating and manpower costs which will hit profit margins.
The group said its urgent priorities are to complete its restructuring exercise, the proposed investment and to resume the trading of its shares on the Singapore Exchange.
No Signboard added that it is preserving cash to support working capital requirements, continue to keep operating costs low, and ensure it has sufficient resources to tide through this period.
Copyright SPH Media. All rights reserved.
