No Signboard posts Q3 net loss of S$1.4m on higher costs

Singapore

SEAFOOD restaurant operator No Signboard Holdings - which recently announced that its CEO had been arrested and released on bail in connection to a share buyback probe - had more bad news to report as it slipped into the red for its fiscal third quarter.

It reported a net loss of S$1.4 million for the three months ended June 30, reversing from a profit of S$0.8 million the year before. The group said this was due to higher operating expenses incurred for its hotpot and quickserve restaurants, coupled with a decrease in its revenue.

The group's revenue fell 15.1 per cent to S$5.9 million from S$7 million the year before. It said revenue from its seafood restaurants was weak during the period, with a 10 per cent reduction in average spend per customer, while revenue from its beer segment declined significantly due to increased competition in the industry.

It reported a loss per share of 0.31 cent, compared to earnings of 0.16 cent the year before.

The group did not declare a dividend for the period. The year before, it paid out a dividend of 0.26 cent per share.

Looking ahead, No Signboard said it intends to leverage on its brand to look for growth outside of Singapore. It added that it would continue to explore suitable opportunities to strengthen its competitive edge in its existing business, while diversifying its food and beverage business.

In May, the group reported that its CEO Sam Lim Yong Sim was arrested on Apr 30 and released on bail, but not charged with any offence. The arrest had been made on "reasonable suspicion" of breaches in the Securities and Futures Act under Section 197 on false trading and market rigging transactions, as well as Section 218 on prohibited conduct by connected person in possession of inside information, it said.

It added that this was part of an ongoing probe by the Singapore Police Force's Commercial Affairs Department into the company's Jan 31 abortive share buyback. Those shares were bought at a price that was above the regulatory limit on share buyback and were purchased during a blackout period.

No Signboard shares closed unchanged at S$0.053 on Tuesday.