Condensed Interim Financial Statements For the six months and full year ended 31 March 2025
Condensed Interim Consolidated Income Statement And Statement Of Comprehensive Income For the six months and full year ended 31 March 2025
Condensed Interim Statements Of Financial Position
Review of the performance
Revenue
Overall, revenue for the financial year ended 31 March 2025 ("FY25") decreased by S$7.9 million (8.7%) to S$82.1 million from S$90.0 million for the financial year ended 31 March 2024 ("FY24") mainly due to:
- S$3.6 million lower revenue contribution from the catering business;
- S$2.6 million loss of revenue contribution from 5 outlets (3 were closed in FY24 and 2 were closed in FY25); and
- S$2.0 million lower revenue contribution from existing outlets.
This was partially offset by S$0.3 million higher revenue contribution from a new outlet which was opened in FY25.
Gross profit margin
Gross profit decreased by S$2.8 million (8.2%) to S$31.8 million in 2H FY25 from S$34.6 million in 2H FY24 and decreased by S$5.7 million (9.0%) to S$58.9 million in FY25 from S$64.6 million in FY24, in line with the lower revenue recorded in both 2H FY25 and FY25.
Gross profit margin decreased by 0.2 percentage points to 72.9% in 2H FY25 from 73.1% in 2H FY24 and to 71.7% in FY25 from 71.9% in FY24 due to higher food raw material costs.
Other operating income
Other operating income decreased by S$0.1 million (7.2%) to S$1.3 million in 2H FY25 from S$1.4 million in 2H FY24 mainly due to:>/p>
- S$0.2 million lower catering service income received;
- S$0.2 million lower marketing promotion funds received; and
- S$0.1 million lower interest income earned.
This was partially offset by S$0.4 million reversal of lease liabilities following the closure of 2 outlets in 2H FY25.
Other operating income decreased by S$0.3 million (11.6%) to S$2.5 million in FY25 from S$2.8 million in FY24 mainly due to:>
- S$0.3 million lower catering service income received;
- S$0.2 million lower marketing promotion funds received;
- S$0.1 million lower interest income earned; and
- absence of S$0.1 million reversal of provision for reinstatement cost for an outlet which was closed during FY24.
This was partially offset by S$0.4 million reversal of lease liabilities following the closure of 2 outlets in FY25.
Administrative expenses
Administrative expenses, mainly manpower-related expenses, decreased by S$0.9 million (5.0%) to S$16.8 million in 2H FY25 from S$17.7 million in 2H FY24 and decreased by S$0.6 million (1.8%) to S$33.1 million in FY25 from S$33.7 million in FY24, due to decrease in headcount by 21, following the closure of outlets over FY24 and FY25.
Other operating expenses
Other operating expenses decreased by S$0.8 million (4.7%) to S$14.8 million in 2H FY25 from S$15.6 million in 2H FY24. The operating expenses which had decreased in 2H FY25 include utilities expenses (S$0.3 million decrease), depreciation of property, plant and equipment (S$0.2 million decrease), impairment loss of property, plant and equipment (S$0.1 million decrease), lease rental expenses (S$0.1 million decrease), advertising and promotions expenses (S$0.1 million decrease), donation expenses (S$0.1 million decrease), professional fee (S$0.1 million decrease), upkeep and cleaning expenses (S$0.1 million decrease) as well as utensils expenses (S$0.1 million decrease).
This was partially offset by S$0.4 million increase in write-off of property, plant and equipment following the closure of 2 outlets in 2H FY25.
Other operating expenses decreased by S$0.8 million (2.7%) to S$29.0 million in FY25 from S$29.8 million in FY24. The operating expenses which had decreased in FY25 include depreciation of property, plant and equipment (S$0.4 million decrease), utilities expenses (S$0.3 million decrease), utensils expenses (S$0.2 million decrease), lease rental expenses (S$0.2 million decrease) and impairment loss of property, plant and equipment (S$0.1 million decrease).
This was partially offset by S$0.4 million increase in write-off of property, plant and equipment following the closure of 2 outlets in FY25.
Finance Costs
Finance costs, mainly interest expenses, increased by S$50,000 (12.2%) to S$460,000 in 2H FY25 from S$410,000 in 2H FY24 and increased by S$47,000 (5.7%) to S$869,000 in FY25 from S$822,000 in FY24 mainly due to increase in interest expenses on lease liabilities driven by higher lease liabilities in FY25.
Share of profit/(loss) of a joint venture
Share of profit of a joint venture of S$11,000 recorded in 2H FY25, compared to share of loss of a joint venture of S$239,000 recorded in 2H FY24 was due to reversal of provision of reinstatement costs from an outlet which was closed in six-month period ended 30 September 2024 ("1H FY25").
Share of loss of a joint venture decreased by S$295,000 (93.1%) to S$22,000 in FY25 from S$317,000 in FY24 due to the cessation of business operation of a joint venture during FY25.
Share of profits/(losses) of associates
Share of profits of associates of S$23,000 in 2H FY25, compared to share of losses of associates of S$9,000 in 2H FY24 was due to net profit contribution from an associate in 2H FY25.
Share of profits of associates of S$36,000 in FY25, compared to share of losses of associates of S$88,000 in FY24 was due to net profit contribution from associates in FY25 and the absence of loss on disposal of investment in an unquoted equity recorded by an associate in FY24.
Income tax (expense)/credit
Income tax expense decreased by S$93,000 (97.9%) to S$2,000 in 2H FY25 from S$95,000 in 2H FY24 mainly due to higher utilisation of group tax relief by certain taxable subsidiaries in 2H FY25.
Income tax credit increased by S$28,000 (>100%) to S$43,000 in FY25 from S$15,000 in FY24 mainly due to higher deferred tax benefits recorded in FY25.
Profit/(loss) attributable to owners of the Company
Despite facing headwinds from a subdued economic outlook and softer consumer sentiment, which weighed on overall revenue, the Group remained resilient and recorded a profit attributable to owners of the Company amounting to S$0.9 million in 2H FY25 (2H FY24: S$1.8 million).
However, due to the loss incurred in 1H FY25, the Group reported a full-year loss attributable to owners of Company amounting to S$1.8 million in FY25, compared to profit of S$2.0 million in FY24.
Cash and bank balances
Decrease in cash and bank balances at Group level was mainly due to:
- S$7.2 million repayment of lease obligations and interest;
- S$1.3 million repayment of bank borrowings;
- S$1.2 million cash outlays to acquire plant and equipment for existing and new outlets;
- S$0.6 million dividend payment to shareholders of the Company; and
- S$0.3 million dividend payment to non-controlling interest in a subsidiary.
This was partially offset by S$7.8 million operational cash inflow and S$0.1 million dividend received from an unquoted equity.
Increase in cash and bank balances at Company level was mainly due to S$1.1 million dividends received from a wholly-owned subsidiary and an unquoted equity but partially offset by S$0.6 million dividend payment to shareholders of the Company in FY25.
Trade receivables
Decrease in trade receivables at Group level was mainly due to lower credit sales from catering events amid lower revenue generated from catering divisions.
Other receivables and prepayments (current)
Decrease in other receivables and prepayments (current) at Group level was mainly due to S$0.2 million lower prepaid advertising expenses for existing outlets and S$0.2 million repayment of receivable due from a shareholder during FY25.
Decrease in other receivables and prepayments (current) at Company level was mainly due to repayment of advances from a wholly-owned subsidiary amounting to S$0.7 million.
Long-term security deposits
Increase in long-term security deposits at Group level was mainly due to the additional rental deposits placed with landlords for new and renewed leases during FY25.
Interests in subsidiaries
Increase in interests in subsidiaries at Company level was mainly due to fair value adjustment on deemed investment of a subsidiary amounting to S$0.2 million.
Interests in a joint venture
Decrease in interests in a joint venture at Group level was mainly due to share of loss of joint venture amounting to S$22,000 during FY25.
Interests in associates
Increase in interests in associates at Group level was due to share of profits of associates amounting to S$36,000 during FY25.
Property, plant and equipment
Decrease in property, plant and equipment at Group level was due to S$2.2 million depreciation charge, S$0.4 million write-off of property, plant and equipment and S$0.2 million impairment loss on property, plant and equipment but partially offset by the acquisition of plant and equipment amounting to S$1.2 million during FY25.
Right-of-use assets
Increase in right-of-use assets at Group level was mainly due to addition of right-of-use assets amounting to S$9.1 million but partially offset by S$6.6 million depreciation charge during FY25.
Trade payables
Decrease in trade payables at Group level was mainly due to lower credit purchases in tandem with lower year-end revenue generated from restaurant and catering divisions.
Other payables (current)
Decrease in other payables (current) at Group level was mainly due to S$0.4 million decrease in staff-related accrued expenses in tandem with reduction in headcounts, following closure of outlets during FY25.
Other payables (non-current)
Decrease in other payables (non-current) at Group level was mainly due to S$0.1 million utilisation of provision for reinstatement costs during FY25.
Income tax payable
Decrease in income tax payable at Group level was mainly due to S$262,000 net income tax paid during FY25.
Lease liabilities (current and non-current)
Increase in lease liabilities at Group level was mainly due to S$8.9 million addition of lease liabilities, but partially offset by S$6.4 million settlement of lease obligations and S$0.4 million reversal of lease liabilities during FY25.
Bank loans (current and non-current)
Decrease in bank loans at Group level was due to loan repayments of S$1.3 million during FY25.
Non-controlling interests
Decrease in non-controlling interests at Group level was mainly due to S$0.3 million dividend payment to non-controlling interest in a subsidiary, but partially offset by share of profits of S$0.2 million associated with non wholly-owned subsidiaries during FY25.
Total assets
Total assets of the Group decreased by S$2.9 million (5.2%) to S$52.8 million as of 31 March 2025 from S$55.7 million as of 31 March 2024 mainly due to:
- decrease in cash and bank balances of S$2.7 million;
- decrease in property, plant and equipments of S$1.6 million; and
- decrease in trade, other receivables and prepayments of S$1.2 million.
This was partially offset by increase in right-of-use assets of S$2.4 million and increase in long-term security deposit of S$0.1 million.
Total liabilities
Total liabilities of the Group decreased by S$0.3 million (0.8%) to S$39.7 million as of 31 March 2025 from S$40.0 million as of 31 March 2024 mainly due to:
- decrease in bank borrowings of S$1.3 million;
- decrease in trade and other payables of S$0.8 million; and
- decrease in income tax payable of S$0.3 million
However, this was partially offset by increase in lease liabilities of S$2.1 million.
Cashflow
The Group’s operating cashflow recorded a net inflow of S$7.8 million in FY25, compared to S$12.9 million in FY24. The decrease was mainly due to lower revenue generated as well as settlement of manpower-related accrued expenses in FY25.
The Group’s investing cashflow recorded a net outflow of S$1.1 million in FY25, compared to S$3.1 million in FY24. The decrease was mainly due to reduced acquisition of plant and equipment and absence of advances to a joint venture in FY25.
The Group’s financing cashflow recorded a net outflow of S$9.4 million in FY25, compared to S$10.5 million in FY24. The decrease was mainly due to lower dividend payment to shareholders of the Company in FY25.
Overall, the Group’s cash position decreased by S$2.7 million to S$13.3 million as of 31 March 2025 from S$16.0 million as of 31 March 2024.
Working capital
The Group's net working capital decreased by S$2.9 million to S$1.9 million as of 31 March 2025 from S$4.8 million as of 31 March 2024 due to operating loss recorded in FY25 and payment of S$0.6 million dividend to shareholders of the Company.
Commentary on current year prospects
The operating landscape for the food and beverage (“F&B”) industry is expected to remain challenging in the coming year, as persistent macroeconomic volatility continues to dampen business sentiment. This compounds existing industry pressures, including escalating operating costs, ongoing labour shortages, and a growing shift in consumer behavior towards price sensitivity, which are set to weigh on profit margins.
Even with an uncertain outlook, the Group does not adopt a purely defensive stance. In addition to streamlining operations and consolidating resources to enhance efficiency, the Group also embraces measured risks and remains proactive in seizing suitable expansion opportunities and innovation as they emerge.
While challenges lie ahead, the Group remains confident in the resilience of its business fundamentals and is well-positioned to navigate obstacles by staying adaptable, focused, and responsive to market dynamics.
