No Signboard Holdings Ltd’s Initial Public Offering: What You Need to Know About the Company’s Financial Performance

No Signboard Holdings Ltd is set to be the latest company to go public. In this article, let’s explore the firm’s revenue, net profit and net profit margin trends over the years.

Show Me the Money

No Signboard Holdings Ltd’s revenue is generated from 1) the sales of food, under the restaurant business, at its three seafood restaurants located at Esplanade, VivoCity and The Central @ Clarke Quay; and 2) sales of beer under the beer business.

For the nine months ended 30 June 2017 (9M2017), the firm raked in a revenue of S$16.7 million, a fall from S$17 million brought in a year ago. Overall sales at the restaurant business fell due to lower sales at Esplanade and VivoCity, but partially offset by higher sales at The Central @ Clarke Quay. 5.8% of the revenue for 9M2017 came from beer sales, with the acquisition of the beer business, Danish Breweries, in June 2017.

For the financial year ended 30 September 2016 (FY2016), revenue fell 10.3% year-on-year to S$22.7 million.

The table below summarises the revenue performance of the firm in recent history:

Source: No Signboard Holdings Ltd Initial Public Offering Prospectus

How the Bottom Line Looks Like

For 9M2017, profit after tax rose 12.1% year-on-year to S$6.5 million. For FY2016, however, profit after tax tumbled 13.3% year-on-year to S$7.8 million.

No Signboard Holdings Ltd’s net profit margin has improved from 26.1% in FY2014 to 38.7% in 9M2017. The net profit margin of more than 20% looks commendable for a food and beverage firm. In comparison, JUMBO Group Ltd (SGX: 42R) had a net profit margin of only around 10% for its latest financial year.

The table below shows the profit after tax and net profit margin trends over the years for No Signboard Holdings:

Source: No Signboard Holdings Ltd Initial Public Offering Prospectus

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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.