No Signboard losses widen to $573,643 for Q1

No Signboard Holdings said that it expects to open two more outlets under the Hawker brand and planned to open one outlet under Mom's Touch brand.
No Signboard Holdings said that it expects to open two more outlets under the Hawker brand and planned to open one outlet under Mom's Touch brand.PHOTO: NO SIGNBOARD

SINGAPORE - Catalist-listed seafood restaurant operator No Signboard Holdings sank deeper in the red with a net loss of $573,643 for the first quarter ended Dec 31, 2018, from a restated loss of $416,366 a year ago.

This comes as the numbers from a year ago were significantly restated after the company adopted the latest accounting rules.

Under the new accounting framework, the group reported a restated net loss of $416,366 for the fiscal first quarter ended December 2017, a marked difference from the $1.4 million net profit it had initially reported under the old accounting rules.

In the latest quarter, revenue fell 16.1 per cent to $5.6 million, as a result of loss of revenue from the closure of a seafood restaurant outlet for a month to carry out major repair works, a drop in average spending per customer in the restaurant business, as well as the termination of non-performing sales contracts of customers in the entertainment establishments as part of the beer business restructuring exercise.

Loss per share stood at 0.12 cents for the quarter, compared to 0.09 cents a year ago.

No dividend was declared.

In a filing to the Singapore Exchange (SGX) on Friday (Feb 1), the group said that it expects to open two more outlets under the Hawker brand and planned to open one outlet under Mom's Touch brand, in which it has secured under an exclusive master franchise agreement to development and operate in Singapore and Malaysia.

No Signboard said that it is continuing to work on the development of new brands, as well as its overseas expansion plans.

"With the completion of the beer business restructuring exercise, the beer business will work on expanding the distribution channels for the beer in according with the new sales strategy," said the group.

On Thursday, No Signboard halted trading in its shares after the morning session which saw the stock surge nearly 24 per cent, prompting a query from SGX. It also requested a trading halt pending an announcement at 12.30pm on Thursday.

The company has not yet responded to the market regulator's queries.