- Fiscal year net loss narrowed, bolstered by government’s job support program
- The beer business was impacted by the continued closure of most outlets it was distributed
- No Signboard is exploring fund-raising activities
Iconic Singapore chilli crab restauranteur No Signboard Holdings reported Monday its fiscal year net loss narrowed to S$6.35 million, form a net loss of S$9.84 million the previous year, bolstered by the government’s job support program as Covid-related restrictions continued to weigh.
Revenue for the 12 months ended 30 September dropped 42 percent on-year to S$7.9 million, the company said in a filing to SGX.
“Since February 2020 in 2Q2020, the topline has been impacted by the decline in number of customers when Singapore implemented travel entry restrictions on short term visitors into Singapore,” No Signboard said.
“Till the end of FY2021, the group’s revenue continues to be impacted by the travel restrictions and safe distancing regulations implemented due to the Covid-19 pandemic as the outlets are not able to operate on the same level as prior to the onset of Covid-19 and the ongoing travel restrictions have significantly reduced the tourist footfall at our seafood outlets,” the chilli crab maker said.
Other income rose 37.5 percent on-year to S$2.62 million for the year due to the Singapore government’s job support program, which amounted to S$1.38 million, and a gain on lease termination of S$558,000, the filing said.
The seafood restaurants accounted for 31.5 percent of the year’s total revenue, down from 58.1 percent in the previous year, No Signboard said. The segment’s revenue fell to S$2.49 million, from S$7.13 million in the previous year, posting a net loss of S$636,020, compared with a year earlier net loss of S$938,028, the filing said.
Hot pot sales contributed 33.6 percent of total revenue, compared with 19.8 percent in the previous year, the filing said.
Quick-serve restaurants made up 29.1 percent of total revenue for the year, compared with 9.5 percent in the previous year, the filing said.
“Beer business was significantly impacted during the year as most of the outlets where its beer is distributed have been closed during the circuit breaker period and remained closed as of 30 September 2021,” No Signboard said.
The beer business reported revenue of S$457,684, down from S$1.79 million in the previous fiscal year, while the net loss narrowed to S$440,281, compared with a year-ago net loss of S$1.04 million.
For the fiscal fourth quarter, No Signboard reported a net loss of S$1.60 million, narrowing from a year-ago loss of S$4.22 million, on revenue of S$1.47 million, down 37.5 percent on-year.
No Signboard issued a cautious outlook, citing setbacks to re-opening of travel and the easing of restrictions.
“Given that the situation is fluid and rapidly evolving as government policies change in tandem, the group expects the operating environment of the local food and beverage industry to remain challenging in the next 12 months, due to uncertain economic outlook aggravated by respective travel restrictions imposed globally that dampened consumers’ demand and spending,” No Signboard said.
Due to the uncertainty, No Signboard said it was working on managing and cutting costs to preserve cash for working capital needs. The company said it is also exploring additional fund-raising activities and options.
The company noted, however, that it is still seeking expansion opportunities.
“Despite the above challenges, the group will continue to explore suitable opportunities to strengthen its competitive edge in its existing business and expand its F&B business both in Singapore and overseas,” No Signboard said, noting it opened its first No Signboard
Sheng Jian Bao outlet at Northpoint in September 2021.
No Signboard said it will be opening a new outlet with a new concept at Plaza Singapura in December.
“Going forward, the group plans to open more casual, quick-serve dining outlets at locations with high traffic,” the company said.