Financials

Unaudited Financial Statements Announcement For The Financial Year Ended 31 December 2017

Financials Archive

 

Consolidated Statement of Comprehensive Income

Income Statements

 

Statements of Financial Position

Statements of Financial Position

 

FINANCIAL REVIEW


FINANCIAL PERFORMANCE

The Group posted total revenue of S$58.0 million for FY2017, an increase of 2.0% year-on-year ("yoy"), as compared to S$56.8 million in FY2016. This was mainly attributed to higher online sales and overall increase in revenue from outlets branded under Bali Thai, Streats and So Pho. The Group mitigated the lacklustre industry conditions through more innovative online offerings and periodic reviews of outlet locations and concepts in relation to target customers.

Cost of sales, which mainly comprises food and beverage cost, rental of restaurants premises, staff costs and depreciation, increased by 7.9% or S$3.9 million from S$48.4 million in FY2016 to S$52.3 million in FY2017. The cost of sales as a percentage of revenue increased from 85.2% in FY2016 to 90.1% in FY2017 mainly due to higher staff costs and rental leases from four new outlets amounting to S$0.7 million and S$1.4 million, and higher commission paid and food costs of S$0.9 million and S$0.3 million respectively.

Due to an increase in cost of sales, the Group's gross profit reduced by 32.1% or S$2.7 million yoy to S$5.7 million in FY2017, with the Group's gross profit margin at 9.9% for FY2017.

The Group's operating expenses which comprised administrative expenses and selling and distribution expenses increased marginally by 2.2% or S$0.1 million yoy to S$5.0 million, as a result of the increased number of outlets. The Group will continue to take a three-pronged approach to its expansion plans, utilising technology to optimise productivity and manage operating expenses.

The Group also saw a decrease in other income by 12.7% or S$0.1 million yoy, mainly due to lower government grants accrued as a result of the decrease in payout rate during the current financial year.

Other expenses increased by 27.0% or S$0.1 million yoy mainly due to higher impairment loss on the property, plant and equipment of non-performing outlets in FY2017.

Overall, as a result of the above mentioned factors and weak consumer sentiments, the Group recorded a net profit of S$1.0 million for FY2017.

FINANCIAL POSITION

The Group's balance sheet recorded a total equity of S$14.2 million as at 31 December 2017. The Group's non-current assets increased from S$11.0 million as at 31 December 2016 to S$12.2 million as at 31 December 2017. The increase in non-current assets was mainly attributable to an increase in refundable deposits and property, plant and equipment acquired for the new outlets.

Current assets reduced from S$13.5 million as at 31 December 2016 to S$10.6 million as at 31 December 2017 mainly due to the decrease in cash and cash equivalents, which was used for business expansion and implementation of the new SAP and POS systems.

The Group's current liabilities decreased by S$1.6 million from S$8.9 million as at 31 December 2016 to S$7.3 million as at 31 December 2017. This was due to a decrease of S$1.7 million from amount due to directors, resulting from the payment of dividend declared in the previous year to the directors, who were then existing shareholders of a subsidiary. In addition, provision for taxation was lower at S$0.2 million compared to S$1.0 million for the previous corresponding period. These were partially offset by the increase in other liabilities due to accrual of staff bonus and unutilised leave of S$0.3 million, and the increase in trade payables of S$0.2 million, in line with the increase in sales.

Non-current liabilities increased slightly by S$0.2 million from S$1.1 million as at 31 December 2016 to S$1.3 million as at 31 December 2017, which was mainly attributed to additional provision for restoration costs for the new outlets.

Net asset value per ordinary share as at 31 December 2017 was recorded at 6.12 cents. Overall, the Group ended the year in a healthy cash position with cash and cash equivalents amounting to S$7.4 million and zero debts.

STATEMENT OF CASH FLOW

The Group generated net cash of S$3.9 million from operating activities before changes in working capital in FY2017. Net cash used in working capital amounted to S$0.5 million mainly due to an increase in trade and other receivables of S$0.4 million, and refundable deposits of S$0.4 million which were partially offset by increase in other liabilities of S$0.6 million. The Group also paid income tax of S$0.8 million. As a result, net cash generated from operating activities was S$2.7 million.

The Group used S$3.7 million in investing activities, mainly attributed to the acquisition of property, plant and equipment for the new outlets.

Net cash used in financing activities of S$2.9 million was mainly attributed to the net payment of dividends to directors of S$1.5 million and shareholders of S$1.4 million.

In view of the above, the Group recorded a net decrease in cash and cash equivalents of S$3.9 million for FY2017.

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