Seafood restaurant operator No Signboard Holdings slipped into the red in its fiscal third quarter, as reduced customer spending and increased competition in the industry hurt its revenues.
The group's revenue fell 15 per cent to $5.9 million in the three months ended June 30 from $7 million the year before. It said revenue from its seafood restaurants was weak during the period, due to a 10 per cent reduction in the average spending per customer, while revenue from its beer segment declined significantly due to increased competition in the industry.
No Signboard reported a net loss of $1.4 million for the quarter, compared with a net profit of $800,000 the year before. The group said this was due to higher operating expenses incurred for its hotpot and quickserve restaurants, coupled with the decrease in its revenue.
It reported a loss per share of 0.31 cent, compared with earnings per share of 0.16 cent the year before. The group did not declare a dividend for the period. The year before, it paid out a dividend of 0.26 cent per share.
No Signboard said it intends to leverage its brand to look for growth outside of Singapore. It added that it would continue to explore suitable opportunities to strengthen its competitive edge in its existing business, while diversifying its food and beverage business.
Ho Bee Land
Ho Bee Land's share of losses from associates and jointly controlled entities and the absence of fair-value gain dealt a blow to the property firm's second-quarter earnings.
Net profit plunged 79.9 per cent to $14.4 million from the previous year, as its Shanghai and Zhuhai associates faced accrual of land appreciation tax amounting to $20.5 million. For jointly controlled entities, Ho Bee captured losses from its residential development project in Tangshan and in-progress Australia projects.
In all, Ho Bee saw $6.7 million in share of losses from associates and jointly controlled entities compared with a share of profits of $28.3 million in the same quarter a year ago. Moreover, the group had recorded a fair-value gain of $28.3 million in the same quarter last year for selling its leasehold interest in the petrol station site along Bukit Timah Road.
Revenue rose 21.2 per cent to $52.6 million from the previous year, helped by contributions from Ropemaker Place, a London investment property. The group also noted positive rental reversions at The Metropolis in Singapore and other London properties. Earnings per share fell to 2.16 cents from 10.74 cents the previous year.