No Signboard reports 1.3% fall in FY17 earnings to $7.7 mil on higher expenses

No Signboard reports 1.3% fall in FY17 earnings to $7.7 mil on higher expenses

By: 
PC Lee
28/12/17, 06:06 pm

SINGAPORE (Dec 28): No Signboard reported a 1.3% fall in full-year earnings to $7.7 million in FY17 ended Sept from $7.8 million a year ago in FY16 on higher expenses.

The seafood restaurant operator had requested for a three-month extension from Singapore Exchange to report its FY17 results due to its listing on Nov 30.

Revenue rose 7.3% to $24.4 million in FY17 from $22.7 million. Restaurant sales decreased by 6.3% to $21.3 million. Sales at The Central outlet increased by 29.5%, whereas sales at the Esplanade outlet decreased by 16.6% while the Vivocity outlet saw sales drop by 0.5%.

While the overall customer count decreased by 15.9%, No Signboard says its restaurants continued to attract more tourists whose higher purchasing power helped increase the average customer spend to $104 per customer in FY17 from $94 per customer in FY16.

With the acquisition of its beer business in June, No Signboard also recorded a four-month beer sales of $3.1 million in FY17.

Other income rose to $1.2 million from $0.1 million due mainly to the one-time recognition of upfront deposit from its beer distributor of $1.1 million as income and waiver of outstanding obligations as agreed upon.

Expenses for raw materials and consumables used rose 21.7% to $5.9 million while expenses for employee benefits rose 16.1% to $5.5 million. Operating lease and other operating expenses also rose 3.6% and 58.1% respectively.

In its outlook, No Signboard says continuing demand for the group’s premium seafood restaurants is expected to remain steady. The group is also working on the two new casual dining concept restaurants to be launched in FY18.

With the addition of another distributor during the year, the group expects the beer business to contribute positively to group sales in FY18.

Meanwhile, the group will be expanding its range of in-house beer brands to cater to different consumer tastes and increasing customer sophistication. It is also in discussions with several third parties in relation to the establishment of the group’s own brewery.

The group is also monitoring the sales of its ready-to-eat meals and will consider other distribution channels when such opportunities arise.

Shares in No Signboard closed 1 cent higher at 26 cents on Thursday.

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