Chew's Group swings into 1H losses after disposal of subsidiaries

Chew's Group swings into 1H losses after disposal of subsidiaries

By: 
Michelle Zhu
07/05/18, 07:03 pm

SINGAPORE (May 7): Chew’s Group reversed into losses of $0.1 million for 1H18 comapred with earnings of $1.7 million in 1H17.

This follows the completion of the disposal of its four subsidiaries: Chew’s Agriculture, Chew’s Engineering Services, Chew’s Group Investment and Chew’s Group Marketing.

In March, Chew's signed an agreement to sell them to Malaysia's Huat Lai Resources for $11 million in cash.

On completion of the deal, Huat Lai will build a new farm along Neo Tiew Road, purchased under a lease agreement between Chew's Agriculture and the Singapore Land Authority.

In its outlook, Chew’s says it is currently “exploring various options" on its future plans although it continues its trading business in Hong Kong through its 90%-owned subsidiary, Chew’s Food International.

Meanwhile, revenue from continuing operations, which include the operations of Chew’s and its subsidiary in Hong Kong, grew 21% to $1.5 million over 1H18 compared to $1.2 million a year ago due to higher trading products in Hong Kong.

In line with the revenue growth, purchase of materials doubled to $0.4 million as according to the management, the purchase of eggs from Chew’s Agriculture will not be eliminated at the group level.

As at end March, Chew’s total assets increased to $68.7 million due to the receipt of a $2.5 million disposal of its subsidiaries, while total liabilities grew to $14.5 million in the same period.

Cash and cash equivalents were $48 million at end March compared to $44.8 million as at end Sept 2017.

A special cash dividend of 35 cents per share has been declared, and will be payable on May 10.

Shares in Chew’s closed 1.5 cents lower at 22 cents on Monday.

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