SINGAPORE - Mary Chia Holdings on Monday (June 4) said the Singapore Exchange Securities Trading (SGX-ST) has granted it an additional extension of time to report its results, and conduct its annual general meeting (AGM) for fiscal year 2018.
The slimming services chain has been granted a two-month extension to release its FY18 results by July 31, 2018, and hold its AGM by Sept 30, 2018. This is subject to the firm stating its reasons for seeking the waiver, and the company confirming that it is unaware of any information that will have a material bearing on investors' decisions that it has yet to announce, among other conditions.
Due to a six-month accounting backlog from its high staff turnover in the 12 months before October 2017, Mary Chia on Oct 20 last year made an application to the SGX-ST and was granted a three-and-a-half month extension to announce its half-year results for FY18, which it eventually made on Feb 28, 2018.
In March this year, the company also completed the disposal of the group's major assets relating to a hotel property at 48, 49 and 50 Mosque Street. Therefore, resources in its Singapore finance team were diverted to prepare the circular to shareholders and an extraordinary general meeting in relation to the disposal, Mary Chia said.
Subsequent to Suki Sushi and Lee Boon Leng (husband of Mary Chia Holdings' chief executive Ho Yow Ping) becoming controlling shareholders of the firm as at Aug 24, 2017, the group became dependent on its new controlling shareholders for funding support.
During this transition period from Aug 24, 2017 to March 29, 2018, the group submitted payment lists, payment plans and a cash forecast on the amounts of its borrowings on a weekly basis, the firm said.
However, its finance team in Singapore also faced challenges in managing the payments to creditors through various meetings and instalment plans.
In addition, prior to its decision to dispose of its hotel property to JL Asia Resources, the group had considered various proposals to raise funds, which required a financial analysis and a review of the impact on the group's financials. Thus, resources from its finance team were diverted to ensure that the hotel disposal could be completed in the "soonest time possible" in order to achieve "self-sufficiency" in its cash flow, Mary Chia explained in its exchange filing on Monday.
The company said the current staff strength in its Singapore finance team is adequate, but that it will "require a reasonable time to clear and complete the accounting backlogs".