Lifestyle company Lifebrandz has reported a widening in second quarter net loss to $593,000 from $112,000 previously. Revenue for the three months to Jan 31 fell by 6 per cent to $6 million.
Sales during the festive period had been affected by lower patronage due to competition from other clubs.
Existing concepts of Aquanova, Mulligans and the new Fenix outlet were able to maintain their popularity.
The company noted that market condition in the industry had been challenging and competitive.
It will continue to embark on various promotion activities to maintain business sales and performance.
Miscellaneous income and expenses consisting of interest income, bad debt recovery and other related miscellaneous income increased to $53,000 during the quarter.
The increase was mainly due to miscellaneous income derived from productivity and innovative grant received.
Loss per share worsened to 0.03 cent from 0.01 cent previously while net asset value per share climbed to 0.21 cent from 0.1 cent a year ago.
Lifebrandz said the recent increase in excise duties of 25 per cent on liquor "will have a negative impact on our margin". Managing and controlling operations cost will remain a top priority.
It will continue to promote new concepts and revamp existing outlets to maintain business presence and activities.
It will also look into various business opportunity and diversification to explore and enhance business growth and values.