SINGAPORE (Aug 24): FJ Benjamin announced losses narrowed 24% to $17.4 million in FY17 from $23 million in FY16. Operating losses decreased 43% to $11.4 million.
Turnover decreased 18% to $207.5 million compared to $253.6 million last year, mainly due to the discontinuance of business that amounted to $22 million as well as a decrease in sales at its Indonesian associate company of $21.2 million.
Sales in Singapore and Malaysia were also down $400,000 after restating the $2.5 million currency translation loss due to the depreciation of MYR against SGD.
This was however offset by the group selling its eco-friendly paper and tissue business as well as its retail franchise of Goyard, which resulted in a gain of $10.8 million.
A franchise brand under the group also incurred an operating loss of $6 million and the group will not be renewing its agreement.
Meanwhile, additional provision has been made for impairment and onerous leases of this brand and along with the provision made for impairment in value of investment, totalled $7.8 million.
Therefore, resulting in a net gain of $3 million was recorded under other income.
As at end June, cash and cash equivalents stood at $538,000, compared to a negative position of $5.8 million the previous year.
Management expects the operating environment in Singapore to remain challenging as the economic growth stays sluggish and the SGD continues to strengthen against regional currencies.
It says it will remain conscious of the challenges and vigilant on costs, while identifying new business opportunities that will enhance the group’s portfolio and assist its return to profitability.
Shares in FJ Benjamin closed at 4.1 cents on Thursday.
