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No Signboard posts Q3 net loss of S$1.4m on higher expenses, revenue fall
SEAFOOD restaurant operator No Signboard Holdings slipped into the red in its fiscal third quarter, as reduced customer spending and increased competition in the industry hurt its revenues.
The group's revenue fell 15 per cent to S$5.9 million in the three months ended June 30 from S$7 million the year before. It said that revenue from its seafood restaurants was weak during the period, due to a 10 per cent reduction in the average spending per customer, while revenue from its beer segment declined significantly due to increased competition in the industry.
No Signboard reported a net loss of S$1.4 million for the quarter, compared to a net 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 the decrease in its revenue.
It reported a loss per share of 0.31 cent, compared to earnings per share 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.
No Signboard shares closed unchanged at S$0.053 on Tuesday.