No Signboard sinks into the red in Q2 as revenue shrinks from outlet closures
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No Signboard's closure of multiple outlets and subsidiary food businesses has resulted in losses and reduced revenue.
PHOTO: NO SIGNBOARD
Derryn Wong
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SINGAPORE – Catalist-listed restaurant operator No Signboard sank into the red for the second quarter ended March 31, as revenue tumbled due to the closure of several outlets.
The company on Nov 23 reported a net loss of $400,000 for the second quarter, compared with a net profit of $90,230 in the year-ago period.
On a per-share basis, this amounted to a loss of 0.09 cent, compared with a profit of 0.02 cent in the year-ago period.
During the quarter, revenue fell 53.9 per cent to $700,000, from $1.5 million previously.
The company attributed this to the cessation of sales from its seafood restaurant business, with the closure of outlets at VivoCity in November 2021 and the Esplanade in March 2022.
There was no sales revenue from its quick-service Mom’s Touch outlets, which had contributed $200,000 in the year-ago period, but have also been closed.
It also had no revenue contribution from its beer subsidiary, Danish Breweries, which was put under voluntary creditors’ liquidation in March 2022.
As a result of the closures and liquidations, No Signboard noted that costs from raw materials and consumables dropped 52.7 per cent to $200,000, while employee benefits expenses came in 52.6 per cent lower at $500,000.
For the first half, the group’s losses narrowed to $700,000, from $900,000 the year before.
First-half revenue fell 54.1 per cent to $1.6 million, from $3.5 million in the corresponding period in 2022. No dividend was declared as there were no distributable profits, as was the case in the year-ago period.
The group has yet to post statements for its full financial year, which ended on Sept 30.
Trading in the shares of the group has been suspended since Jan 24, 2022, as it was unable to demonstrate that it could continue as a going concern.
The group said that one of its urgent priorities was to resume trading, and it submitted a trading resumption proposal in September, after an earlier revision in April.
In October, Mr Lim Teck-Ean was appointed interim chief executive, as former executive chairman and CEO Sam Lim faces charges of share price rigging THE BUSINESS TIMES
