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5 Things to Know About RE&S Holdings Ltd’s Financial Statements and Valuation

RE&S Holdings Ltd (SGX: 1G1), which went public on 22 November 2017, is a concept owner and operator of Japanese food and beverage (F&B) outlets in Singapore and Malaysia. In this article, we will look at the firm’s financials and valuation.

1. For the financial year ended 30 June 2017 (FY2017), RE&S Holdings posted a revenue of S$140.9 million, up from S$135.3 million a year ago. Out of the S$140.9 million, 74.4% were from its full-service restaurants, and the rest were from quick-service restaurants, convenience and others.

2. Moving down the income statement, the F&B firm raked in a net profit of S$5.7 million in FY2017, almost two times higher than FY2016’s net profit of S$2.9 million.

3. As of 30 June 2017, it had S$4.2 million in cash and cash equivalents, and S$17.2 million in total debt. The balance sheet had weakened as one year prior, RE&S had S$6.9 million in cash and cash equivalents, and S$15.4 million in total borrowings.

4. Now, turning our attention to the cash flow statement, the firm raked in S$17.1 million from its operating activities in FY2017. With capital expenditure coming in at around S$5.9 million, the F&B outfit had a free cash flow of S$11.3 million. In comparison, it brought in lesser free cash flow of S$2.8 million in FY2016.

5. With 354 million shares outstanding and a share price of S$0.29 (at the time of writing), RE&S Holdings is selling at 18 times its FY2017 earnings. Using the price-to-book metric, it is going at 3.2 times its book value.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.