Income Statement
For the financial year ended 31 December 2008 (“FY2008”), the Group recorded a 12.7% increase in revenue
compared to the previous corresponding period ended 31 December 2007 (“FY2007”), mainly due to the
increase in sales from retail operations, food catering and offshore catering operations. Offshore catering had
substantially commenced operations at the beginning of 2008.
The Group posted a net loss after tax of $905K for FY 2008 as compared to a net loss after tax of $1,430K for
FY2007. The losses are mainly a result of:
- bad debts of $242K and $125K being written off for our subsidiaries in Johor and Suzhou, respectively, as operations were discontinued;
- Café A971 and Wisteria Hotel recording respective net loss after tax of $130K and $69K, mainly due to startup costs being written off; and
- Select Food Services (Offshore Catering) incurring a net loss after tax of $341K for the year due to fewer
contracts awarded and higher overhead costs incurred in FY2008.
Food Catering (FC)
Sales of the Group’s food catering division registered an increase of $1,765K or 20.9%, with segmental profit
of $648K (FY2008) as compared to segmental profit of $225K (FY2007), mainly as a result of targeted sales
of premium buffet packages.
31.12.08 31.12.07
Net asset value (S$’000) 13,171 12,081
No. of ordinary shares (excluding treasury shares) 142,380,400 131,713,400
Net asset value backing per ordinary share (cents) 9.25 9.17
11 Select Group Ltd
www.select.com.sg
Institutional Catering (IC)
The Group’s institutional catering division recorded a decline in revenue of $4,013K or 23.3% and a
segmental profit of $337K, as compared with segmental loss of $253K in the FY2007. As a result of
continuing relocation of electronic industry from Singapore to the regional countries, this segment suffered a
decline in sales. However, the adoption of tighter cost control measures in FY2008 and the discontinued
operation of the loss making subsidiary in Suzhou, has reversed this loss making segment.
Food Retail (FR)
In the food retail segment, sales increased by $5,298K or 47.4% and recorded a segmental loss of $1,386K
for FY2008 as compared to a profit of $693K in FY2007. The loss was mainly due to the start-up costs
incurred for the new retail concept “Quickserve”, which commenced operations at the beginning of 2008. The
higher rental and food costs also negatively affected this division.
Balance Sheet
Goodwill of $7,445K arose from the acquisition of the entire share capital of PG Holdings Pte. Ltd., which
operates a chain of restaurants under the brand name of Peach Garden (“PG”).
Intangible assets of $197K refers to the technical know-how acquired from a Japanese company to set up and
operate Café A971 in FY2008.
Decrease in Cash and Cash Equivalents is mainly due to the partial cash consideration used to acquire PG on
12 December 2008. The balance cash consideration of $3,000K is included in the Other Financial Liabilities,
Current.
Cash Flow
The Group’s operations in FY2008 generated a positive cashflow of $842K from operating activities. The decrease in cash was mainly attributable to the partial cash consideration of $2,944K used to acquire PG and
the professional fees of $216K paid in relation to the PG acquisition in FY2008.
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