Published August 21, 2009

St James Hldgs posts $16.3m full-year loss

Non-recurring items account for the bulk of loss, says group

By TEH SHI NING
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(SINGAPORE) Night entertainment group St James Holdings, hit by party-goers' recession-dampened spirits and non-recurring costs, yesterday posted a full-year net loss of $16.3 million.

Tough times: Poor economic sentiment and roadworks near St James Power Station at Sentosa Gateway took their toll on sales, says the group

The non-recurring items - which account for the bulk of the loss - comprise $14.25 million for costs of reverse acquisition written off, $0.5 million for write-off of goodwill from acquiring Bar None (now known as Firefly Entertainment) and $0.58 million in impairment loss on plant and equipment.

But even excluding the one-time costs, the group still posted a loss of $0.72 million at the operating level for the year ended June 30, falling from its full-year operating profits of $5.34 million and full-year net profit of $4.3 million the preceding financial year.

Poor economic sentiment, coupled with roadworks near St James Power Station at Sentosa Gateway, took its toll on sales, especially in the second half of the financial year, the group said.

For the full year, total revenue had in fact risen 7 per cent to $41.4 million, from $38.7 million the preceding year, with added contributions from Bar None and The Living Room, acquired last April, and Bellini Grande at Clarke Quay, which opened on the former premises of the Crazy Horse last October.

These new outlets, which the group added to its existing stable of nine entertainment outlets in St James Power Station, also led to a 26 per cent increase in costs to $42.1 million from $33.4 million a year ago, hence the overall operating loss.

The group's loss per share of 5.36 cents as at June 30, compares with earnings per share of 1.79 cents the year before. Net asset value per share also fell to 4.25 cents as at June 30 this year, from 15.85 cents a year ago. Its cash and cash equivalents as at June 30 totalled $3.8 million, compared with $3.7 million a year back.

St James was listed on Catalist last August via a $108 million reverse takeover of the former JK Technology. To avoid doubt, the group said, yesterday's results announcement did not include the discontinued operations of the IT business of JK Tech, wholly divested last August.

The group said that it expects the opening of Resorts World at Sentosa next year to boost traffic to its Sentosa-Harbourfront outlets, and hopes that when roadworks at Sentosa Gateway and the travellator connecting VivoCity and Resorts World are complete, St James Power Station will benefit from added buzz in the area.

It is planning for the opening of a new venue within Resorts World next year, and expects positive contributions from these developments by the second half of FY 2010.

St James' shares fell 3.5 cents or 18 per cent yesterday to 16 cents, making it one of the top 20 losers on the exchange.