When we first started at
East Coast Seafood Centre
Recognition is the
Your dining experience is
Profit before tax ($'000)
|Profit Before Tax||10,021||15,591||15,141||18,438||17,819|
|Profit for the Year||9,546||13,778||13,322||15,708||15,040|
|Net Profit Attributable to|
|Owners of the Company||8,539||11,521||10,600||15,508||14,472|
|Fellow Co-operative Venturers||1,009||1,828||2,152||-||-|
|Basic and diluted earnings per share (cents)||1.3||1.8||1.7||2.4||2.3|
Review Of The Group's Performance
Revenue increased by 6.1% or $8.3 million, from $136.8 million in FY2016 to $145.1 million in FY2017. Revenue from our Singapore operations increased by $2.9 million while revenue from our outlets in the PRC increased by $5.4 million with full year revenue contributions from our third Jumbo Seafood restaurant in Shanghai, PRC.
Cost of sales
Cost of sales which comprised raw materials and consumables used increased by 5.7% or $2.9 million, from $50.3 million in FY2016 to $53.2 million in FY2017, in line with the increase in revenue. Cost of sales as a percentage of revenue remained stable at approximately 37% in both FY2017 and FY2016.
Gross profit increased by 6.3% or $5.4 million, from $86.5 million in FY2016 to $91.9 million in FY2017. Gross profit margin was approximately 63% in both FY2017 and FY2016.
Other income decreased by 17.6% or $0.6 million, from $3.3 million in FY2016 to $2.7 million in FY2017, largely due to lower government grants resulting from a reduced wage credit scheme payout.
Employee benefits expense
Employee benefits expense increased by 6.4% or $2.6 million, from $39.2 million in FY2016 to $41.8 million in FY2017. This was mainly due to an overall increase in employee headcount and remuneration to support our regional expansion.
Operating lease expenses
Operating lease expenses increased by 16.7% or $2.0 million, from $11.9 million in FY2016 to $13.9 million in FY2017 mainly due to the additional floor space for our new outlets, outlet expansion and new corporate offices in Singapore and Shanghai, PRC.
Depreciation expense increased by 29.9% or $1.1 million, from $3.5 million in FY2016 to $4.6 million in FY2017 mainly due to the additional depreciation for our new outlets and new corporate offices in Singapore and Shanghai, PRC.
Other operating expenses
Other operating expenses increased by 1.1% or $0.2 million, from $13.3 million in FY2016 to $13.5 million in FY2017. Included in other operating expenses were expenses of approximately $1.0 million in relation to the Group’s 30th Anniversary celebrations. These expenses included monthly lucky draws, celebration dinners and gifts.
Income tax expense
Income tax expense increased by 1.8% or $0.1 million, from $2.7 million in FY2016 to $2.8 million in FY2017 mainly due to higher taxable profits in our PRC operations.
Profit after tax
Profit after tax decreased by 4.3% or $0.7 million, from $15.7 million in FY2016 to $15.0 million in FY2017.
Profit attributable to owners of the Company
Profit attributable to owners of the Company decreased by 6.7% or $1.0 million, from $15.5 million in FY2016 to $14.5 million in FY2017.
Review Of The Group'S Financial Position
The Group’s current assets decreased by $4.5 million from $66.7 million as at 30 September 2016 to $62.2 million as at 30 September 2017 mainly due to the decrease in cash and cash equivalents.
The Group’s non-current assets increased by $1.5 million from $19.5 million as at 30 September 2016 to $21.0 million as at 30 September 2017 due to the increase in property, plant and equipment resulting from the establishment of new outlets and new corporate offices in Singapore and Shanghai, PRC.
The Group’s current liabilities decreased by $4.4 million from $18.9 million as at 30 September 2016 to $14.5 million as at 30 September 2017 mainly due to the decrease in trade and other payables.
The Group’s non-current liabilities decreased by $0.5 million from $0.8 million as at 30 September 2016 to $0.3 million as at 30 September 2017 due to full repayment of bank borrowings.
Review Of The Group's Cash Flow Statement
The Group generated net cash from operating activities before changes in working capital of $22.3 million. Net cash used in working capital amounted to $7.8 million mainly due to an increase in trade and other receivables of $3.0 million, resulting from rental deposits due to new leases and higher receivables from credit card issuers in line with the increase in revenue, an increase in inventories of $0.4 million and a decrease in trade and other payables of $4.4 million. The Group paid income tax of $2.9 million. As a result, net cash generated from operating activities was $11.6 million.
Net cash used in investing activities amounted to $5.9 million and was mainly for the acquisition of property, plant and equipment (relating to the establishment of new outlets, outlet expansion and the acquisition of new equipment for our central kitchen).
Net cash used in financing activities of $13.7 million was mainly due to the payment of dividend amounting to $14.1 million to the owners of the Company and full repayment of bank borrowings of $0.6 million, partially offset by capital contribution of $1.0 million from non-controlling interest in a subsidiary. As a result, net cash and cash equivalents decreased by $8.0 million in FY2017.