FOOD JUNCTION REPORTS THIRD QUARTER NET PROFIT OF S$1.7 MILLION
FOOD JUNCTION REPORTS THIRD QUARTER NET PROFIT OF S$1.7 MILLION
| - | Maiden quarterly reporting |
Financial Highlights:
- Turnover of S$10.4 million
- Net Profit of S$1.7 million
- Net Profit Margin of 16.0%
- Earnings Per Share of 1.41 cents
SINGAPORE, 3 August 2006 – SESDAQ-listed Food Junction Holdings Limited and its subsidiaries (“Food Junction” or the “Group”), a specialised food and beverage service-management group, today announced that for the third quarter ended 30 June 2006 (“3QFY06″), the Group reported a net profit attributable to shareholders of S$1.7 million, a S$0.3 million decrease from the S$2.0 million recorded in 3QFY05. Turnover declined from S$11.0 million in 3QFY05 to S$10.4 million in 3QFY06 due mainly to the absence of revenue from Malaysian food courts under renovation and the closure of food courts upon the expiry of their leases.
The Group recorded a higher turnover for its Singapore operations in 3QFY06, mainly due to revenue contribution from its new food courts at United Square, Choa Chu Kang Lot 1 Level 3, Century Square Level 3 and Level 4, and its new “ROTI-PRATA” stalls. This was partially offset by the absence of revenue contribution from food courts that had closed upon their lease expiry and the closure of Punggol food house.
During the period under review, the Group’s Malaysian operations saw a decline in turnover. This was mainly due to the temporary closure of its City Square (Johor Bahru) and Mid-Valley (Kuala Lumpur) food courts for renovation. In the month of May 2006, the Group closed its operations at The Curve food court in Putra Jaya.
As at 30 June 2006, Food Junction manages and operates a total of 14 food courts: 12 in Singapore and 2 in Malaysia. It also self-operates 49 F&B stalls, out of the 214 stalls in the Group’s food court business.
The Group’s profit before tax declined S$0.2 million from S$2.6 million in 3QFY05 to S$2.4 million in 3QFY06, largely due to the temporary closure of its two Malaysian food courts for renovation.
The Group’s effective tax rate was approximately 30.0% for 3QFY06. The higher tax rate reflected the tax effect on the non tax-deductible assets written off for the closure of The Curve food court. As a result, net profit attributable to shareholders decreased S$0.3 million to S$1.7 million in 3QFY06.
The Group has declared a special dividend of 2.0 cents per share, and this special dividend will be paid on 31 August 2006.
Said Mr Andrew Fu, Managing Director of Food Junction: “To reward our shareholders for their support, we are pleased to declare a special dividend of 2.0 cents per share for FY2006 to return excess cash to shareholders. We propose to continue with this special dividend policy, subject to favourable cash flow and performance of the Group.”
Moving forward, the Group’s overseas drive is starting to take shape with three new overseas food courts. In Indonesia, the Group opened its first food court located in Universitas Pelita Harapan (“UPH”) in Lippo Karawaci, Tangerang. The UPH food court is about 44,000 sq.ft. and shall be launched in two phases in July and September 2006 respectively.
In China, the Group commenced renovation for its first China food court at Hefei, Anhui Province, and the 40,000 sq.ft. food court is expected to open by end September 2006. Its other food court in the Four Seasons Shopping Centre, Beijing, is scheduled to commence operations in 2007.
In Singapore, the Group has also added a new 4,250 sq.ft. food court at Holland Village, and the food court is scheduled to commence operations in August 2006
Commenting on the Group’s expansion, Mr Andrew Fu added: “We are pleased to add another food court to our Singapore operations. Our new food court at Holland Village will be opening this Saturday. Meanwhile, we are in an exciting phase for our overseas expansion. We have already opened our first food court in Indonesia in July 2006. Our first China food court is set to commence operations by end September 2006, and our second food court in China is targeted to open in 2007. We will continue to source for suitable sites to expand our reach in these growing markets.”
About Food Junction Holdings Limited
A market leader and trendsetter in food court operations for more than 12 years, Food Junction opened its first food court at Junction 8 Shopping Centre in 1993 – to become amongst the first to introduce food courts with theme concepts to Singapore.
Food Junction currently manages and operates a total of 14 food courts: 12 in Singapore and 2 in Malaysia. It also self-operates 49 F&B stalls, out of the 214 stalls in the Group’s food courts business.
A food court management specialist, Food Junction manages the operational aspects of its food courts and food stalls, ranging from cash collection services to dish collection, dish washing, cleaning and general maintenance. To enable tenants to stay focused on food quality and services, an operations team is stationed at each food court to ensure smooth day-to-day running of the food courts as well as the food stalls. The Group also handles the marketing and business development of the food courts, like the food and tenant mix of each food court, and handles the advertising and promotion of the food courts to create greater awareness.
| ISSUED ON BEHALF OF : | Food Junction Holdings Limited |
Aug 3, 2006
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