TSH reopens two bar outlets, expects to report loss for HY2020

FOOD and beverage operator TSH Corporation said in a regulatory update on Thursday that it has reopened two out of five of its bars for dine-in services, and is expecting to report a financial loss for HY2020.

It said that, as of Thursday, it does not foresee any material impairment to its receivables and inventories arising from Covid-19. Barring unforeseen circumstances, the expected losses for HY2020 and the decrease in cash and bank balances are not expected to affect the ability of the group to continue as a going concern and its ability to fulfill its obligations, said the company.

Based on unaudited management accounts, the group's revenue for April and May 2020 fell by more than 80 per cent from a year ago.

TSH said that its key management of the company and certain managers will continue to take a 10-per-cent and 3-per-cent pay cut respectively. Staff have also been requested to continue to take annual leave.

Meanwhile, the group will continue to focus on staff training and building a stronger team to prepare for the group's long-term growth, it said.

In addition to the waiver received for some rental fees in April 2020, the group has obtained further rebates for some rental fees in May and June. Certain landlords are still assessing the property tax rebates from the government before committing to passing down those rebates.

Shares of TSH last traded at 14 Singapore cents.