SINGAPORE - Seafood restaurant operator No Signboard on Monday reported a loss of just under $600,000 for the fourth fiscal quarter ended Sept 30, narrower than the loss of $4.4 million in the corresponding year-ago quarter.
Full-year losses came in at about $2.7 million versus red ink of $9.1 million in the previous year, the company said in a bourse filing.
Its stock last traded at 3.1 cents before its trading halt and subsequent suspension in January.
Revenue for the fourth quarter fell 37.8 per cent to $900,000 from $1.5 million, while revenue for the full year was down 31 per cent to $5.5 million.
The group attributed the lower annual revenue to a combination of factors including lower seafood restaurant sales due to travel restrictions and safe distancing regulations implemented during the Covid-19 pandemic, as well as lower sales from hotpots, quick-serve restaurants and the group’s beer business.
These were, however, partially offset by sales from No Signboard’s new business concept, nosignboard Sheng Jian.
No Signboard said it expects the operating environment of the local food and beverage industry to remain challenging in the next 12 months due to an uncertain economic outlook aggravated by high inflation and risks of recession that have dampened consumers’ demand and spending.
The group said it has been “conscientiously managing” its costs, and is taking steps to review and implement various cost-cutting and cost control measures.
No Signboard said its current priorities are to preserve cash to support working capital requirements, keep operating costs low, and ensure that the company has sufficient resources to tide through this period.
The company is currently in the process of a court-supervised restructuring exercise that includes a scheme to reorganise its liabilities and deleverage its balance sheet.
No Signboard said it has entered into an implementation agreement with Gazelle Ventures, where Gazelle will pump up to $5 million into No Signboard upon the completion of the proposed investment.
The group said it is “cautiously optimistic” that the funds from this investment will be sufficient to help it meet the working capital requirements and operate as a going concern.
The company added that it is in the middle of “preparing the application for the resumption of trading” of its shares on the Singapore Exchange.
The group is also preparing the circular and relevant documents for the purpose of convening an extraordinary general meeting (EGM) to seek approval from shareholders for certain transactions.
The EGM will be held on Nov 30, and the company said it aims to submit the resumption proposal “as soon as possible”. THE BUSINESS TIMES
