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FIRST QUARTER FINANCIAL STATEMENT AND DIVIDEND ANNOUNCEMENT FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2019

Financials Archive

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Income Statement

Balance Sheet

Review of Performance

Revenue and Profitability

The Group’s revenue for the financial period ended 31 March 2019 (“3M2019”) was $11.9 million, an increase of $0.8 million or 7.2% as compared to $11.1 million for the financial period ended 31 March 2018 (“3M2018”). The increase was attributable to an increase in revenue from existing outlets and online delivery services of $0.2 million and a net increase in revenue from the opening and closure of outlets of $0.5 million due to mall refurbishment. Revenue for the food processing, distribution and procurement services segment has also increased by $0.1 million.

Other income increased by 12.3% mainly related to write back of expired vouchers.

Purchases and other consumables were maintained at approximately 22.0% of revenue as compared to 3M2018.

Employee benefits expense increased by $0.3 million or 7.0% in 3M2019 mainly due to the net increase as a result of the opening and closure of outlets as well as the set-up of a new catering kitchen located at Enabling Village in November 2018.

Depreciation and amortisation expenses increased by $1.8 million in 3M2019 mainly due to depreciation of right-of-use assets incurred upon the recognition of the right-of-use assets as a result of the adoption of SFRS(I) 16 Leases.

Other expenses decreased by $1.4 million or 35.6% in 3M2019 mainly due to a decrease in operating leases of $1.9 million, as a result of the adoption of SFRS(I) 16 Leases, netted off against the opening of an outlet of $0.1 million and variable rent of $0.1 million. The decrease was offset by an increase in sales commission of $0.1 million which is associated with online delivery services, and an increase in utilities and credit card commissions of $0.2 million which are associated with the opening of a new outlet and a higher level of business activities.

Finance costs increase was in relation to the interest expenses on lease liabilities taken up as a result of the adoption of SFRS (I) 16 Leases.

As a result, the Group’s profit before income tax decreased by $0.2 million or 20.9% as compared to 3M2018. Earnings per share stood at 0.21 cents in 3M2019.

Review of Financial and Cash Flow Position

Non-current assets increased by $15.2 million from $3.3 million, as at 31 December 2018 (“FY2018”), to $18.5 million as at 31 March 2019 (“1Q2019”), mainly due to recognition of right-of-use assets of $17.2 million and the addition of plant and equipment of $0.1 million, offset by depreciation and amortisation expenses of $2.1 million.

Current assets increased by $0.3 million as compared to FY2018 mainly due to an increase in trade and other receivables of $0.3 million and increase in inventories of $0.1 million, offset by a decrease in cash and cash equivalents of $0.1 million. The trade and other receivables increase was mainly due to the increase in receivables of $0.1 million, which is associated with the increased revenue and increase in prepayment and deposits of $0.2 million, due to the signing of new lease agreements. The decrease in cash and cash equivalents was attributable mainly to purchase of treasury shares of $0.1 million, repayment of lease liabilities of $1.9 million, partially offset by net cash from operating activities of $2.1 million.

Total liabilities increased by $15.0 million mainly due to an increase in lease liabilities of $15.5 million as a result of the adoption of SFRS(I) 16 Leases, offset by a decrease in trade and other payables of $0.5 million as a result of payments for staff bonuses and expenses accrued as at FY2018.

Total equity increased by $0.5 million from $11.0 million as at FY2018, to $11.5 million as at 1Q2019, attributable mainly to the profit reported during the financial period, offset against purchases of treasury shares of $0.1 million. The Group’s net asset value per share stood at 4.13 cents as at 1Q2019.

Commentary

The Group continues to focus on strengthening our brands with plans for the rejuvenation of some of our outlets in Singapore. The Group will also continue to bring our food offerings to more customers through online delivery platforms from all our outlets. At the same time, the Group will continue to manage the operations of our restaurants more effectively with the implementation of productivity measures with the intention of serving our customers better.

The food processing and distribution business remains focused on its core strategies to assist the Group through procurement sourcing and management, as well as widening its distribution networks for its consumer goods and ready meals through the central kitchen located in Changi Prison Complex and a new catering kitchen located at Enabling Village which started operations in November 2018.