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Mr Michael Tay, the Executive Director of The Hour Glass said: “Discretionary spending on luxury and specialist watches are trending downwards. While this had an impact on the Group’s performance, we continue to pursue a strategy of selective merchandising, driving sales and improving our operating efficiencies to stay profitable. That said, the coming months will pose unprecedented challenges which we are more than ready to face. It will be some time before consumer sentiment returns to pre-crisis levels.”
Highlights of FY2009 First Nine Months Financial as reported by The Hour Glass
• Revenue dips 7% to S$342.1 million from a year ago
• Impairment charge of S$14.1 million on investment security
• S$7.1 million net profit after tax for 9MFY2009
• Expects challenging times ahead but to remain profitable for the full financial year
Revenue generated for 9MFY2009 declined 7% to S$342.1 million. This decrease in revenue from the S$368.8 million produced in the corresponding period a year ago is primarily attributed to a marked slowdown in discretionary spending on luxury watches.
In the Group’s latest financial results, gross margins increased to 21.5% for 3QFY2009, compared with 19.8% in the last corresponding period.
A one off impairment charge taken in 3QFY2009 has resulted in an earnings per share decline to 2.82 Singapore cents.
The Group’s balance sheet remains strong with cash and cash equivalents of S$31.2 million for 9MFY2009 and an improved debt to equity ratio of 10.6%.
The Group’s sound business fundamentals, prudent financial strategy and experienced management team provide the Company with a high degree of operational stability in spite of the economic turbulence impacting the business. The Group expects to remain profitable for the full financial year.
ISSUED BY
THE HOUR GLASS LIMITED
11 February 2009
Mr Michael Tay, the Executive Director of The Hour Glass said: “Discretionary spending on luxury and specialist watches are trending downwards. While this had an impact on the Group’s performance, we continue to pursue a strategy of selective merchandising, driving sales and improving our operating efficiencies to stay profitable. That said, the coming months will pose unprecedented challenges which we are more than ready to face. It will be some time before consumer sentiment returns to pre-crisis levels.”
Highlights of FY2009 First Nine Months Financial as reported by The Hour Glass
• Revenue dips 7% to S$342.1 million from a year ago
• Impairment charge of S$14.1 million on investment security
• S$7.1 million net profit after tax for 9MFY2009
• Expects challenging times ahead but to remain profitable for the full financial year
Revenue generated for 9MFY2009 declined 7% to S$342.1 million. This decrease in revenue from the S$368.8 million produced in the corresponding period a year ago is primarily attributed to a marked slowdown in discretionary spending on luxury watches.
In the Group’s latest financial results, gross margins increased to 21.5% for 3QFY2009, compared with 19.8% in the last corresponding period.
A one off impairment charge taken in 3QFY2009 has resulted in an earnings per share decline to 2.82 Singapore cents.
The Group’s balance sheet remains strong with cash and cash equivalents of S$31.2 million for 9MFY2009 and an improved debt to equity ratio of 10.6%.
The Group’s sound business fundamentals, prudent financial strategy and experienced management team provide the Company with a high degree of operational stability in spite of the economic turbulence impacting the business. The Group expects to remain profitable for the full financial year.
ISSUED BY
THE HOUR GLASS LIMITED
11 February 2009
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