Sakae warns of fiscal 2019 loss on S$3.2m impairment charge

SAKAE Holdings expects to record a loss for the financial year ended June 30, largely from a goodwill impairment of S$3.2 million in connection with its purchase of a 51 per cent equity interest in Cocosa Export.

It also saw an impairment loss of around S$2.8 million under other receivables associated with the group's investment in Cocosa Export and related entities, the operator of conveyor belt sushi restaurants said in a profit guidance issued on Thursday just before midnight.

Cocosa Export is a Chilean frozen seafood production and trading company in which the group acquired a stake in March 2016.

Sakae Holdings last closed at 8.5 Singapore cents on Wednesday, down 0.5 cent or 5.56 per cent. The group disclosed on June 5 that it had been placed on the Singapore Exchange watch list.