SINGAPORE - No Signboard Holdings will impair the goodwill and intangible asset related to its beer business to reflect an underperforming segment that will be rationalised and restructured.
In a filing with the Singapore Exchange on Thursday (Nov 22), No Signboard said it had undertaken a review on the recoverability of the group's goodwill and intangible asset of its beer business, and has decided to impair the asset - or permanently lower its value - in accordance with Singapore Financial Reporting Standards. Therefore, it is expected to record accounting losses - or losses outside the normal operations of its business - for the fourth quarter and full-year of financial year 2018.
"Such impairment is primarily attributable to the fact that the beer business had not performed as anticipated," it added. It is expected to release its results on or before Nov 29.
No Signboard, which was listed on the Catalist board of the Singapore Exchange in November 2017, said previously that it would use its IPO (initial public offering) proceeds to build a new brewery in Indonesia and grow its range of in-house beer brands.
In June this year, it scooped up the remaining 20 per cent stake in Danish Breweries for $400,000. Danish Breweries owns its signature Draft Denmark brand as well as manufactures and distributes Draft Denmark lagers in Singapore. Established since 2014, Draft Denmark is distributed across around 300 outlets in Singapore comprising mainly pubs, coffee shops and clubs.
At the time, the group said that acquiring the remaining stake would allow the group to fully capitalise on the potential of the beer business and give it full control in the decision making of its day-to-day operations. This included reducing operational expenses. It first acquired 80 per cent of Danish Breweries in June 2017 for $1.78 million.