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Straits Times
6 days ago
- Business
- Straits Times
ST Group Food to liquidate loss-making Gong Cha business in UK
Find out what's new on ST website and app. While the liquidation will result in some losses on a pro-forma basis, it will likely have a positive impact on the group's consolidated net tangible assets. SINGAPORE - Catalist-listed ST Group Food plans to liquidate its loss-making subsidiary in the UK, GCTea Outlets 2B, which operates a food and beverage outlet under the Gong Cha brand in the country. PappaRich, Ippudo, and Hokkaido Baked Cheese Tart are other brands owned or franchised by the Australia-based company. 'It has been determined that it is no longer viable for GCTea Outlets 2B to continue its business due to amongst others, (its) liabilities... and the challenging economic situation in the UK,' the food and beverage company said on July 23. While the liquidation will result in some losses on a pro-forma basis, it will likely have a positive impact on the group's consolidated net tangible assets (NTA) and earnings per share in the long run, due to the loss-making nature of GCTea Outlets 2B, ST Group Food said. For illustrative purposes, and based on the group's latest audited financials for the year ended June 2024, liquidating GCTea Outlets would lead to a slight drop in the group's NTA, from A$19.65 million (S$16.6 million) to A$19.59 million. This would translate to its NTA per share remaining unchanged before and after liquidation at A$0.077. Assuming GCTea Outlets was wound up on July 1, 2023, the group's net profit would fall from A$858,979 before liquidation to A$803,433 after liquidation. This would translate to a drop in earnings per share from A$0.35 to A$0.32. ST Group Food's interest in GCTea Outlets 2B is held through its subsidiary GC (England), in which it has an 84 per cent stake. GC (England) holds the entire equity interest of GCTea, which in turn fully owns GCTea Outlets 2B. Top stories Swipe. Select. Stay informed. World Trump was told he is in Epstein files, Wall Street Journal reports Opinion The US dollar is down, but it has a lot going for it Singapore Judge asks prosecution for more information on Kpods in first case involving etomidate-laced vapes Singapore Singapore Oceanarium will enhance tourism while supporting sustainability: Grace Fu Singapore 5 teens arrested for threatening boy with knife, 2 charged with causing hurt Singapore Over 1.15 million Singaporeans aged 21 to 59 have claimed SG60 vouchers Opinion Cinemas struggle in a world that cannot sit still Asia Japan PM Ishiba refutes reports of imminent resignation after surprise US trade deal
Business Times
6 days ago
- Business
- Business Times
ST Group Food moves to liquidate UK unit that operates Gong Cha brand in the country
[SINGAPORE] Catalist-listed ST Group Food plans to liquidate its indirect subsidiary in the UK, GCTea Outlets 2B, which operates a food and beverage outlet under the Gong Cha brand in the country. This comes amid the Australian-headquartered company's plans to exit from the Gong Cha brand in the UK, as the unit has been loss-making and is in a net liabilities position as at end-December 2024. 'It has been determined that it is no longer viable for GCTea Outlets 2B to continue its business due to amongst others, (its) liabilities... and the challenging economic situation in the UK,' the food and beverage company said on Wednesday (Jul 23). While the liquidation will result in some losses on a pro-forma basis, it will likely have a positive impact on the group's consolidated net tangible assets (NTA) and earnings per share in the long run, due to the loss-making nature of GCTea Outlets 2B, ST Group Food said. For illustrative purposes, and based on the group's latest audited financials for the year ended June 2024, liquidating GCTea Outlets would lead to a slight drop in the group's NTA, from A$19.65 million (S$16.6 million) to A$19.59 million. This would translate to its NTA per share remaining unchanged before and after liquidation at A$0.077. Assuming GCTea Outlets was wound up on Jul 1, 2023, the group's net profit would fall from A$858,979 before liquidation to A$803,433 after liquidation. This would translate to a drop in earnings per share from A$0.35 to A$0.32. ST Group Food's interest in GCTea Outlets 2B is held through its subsidiary GC (England), which it has an 84 per cent stake in. GC (England) owns the entire equity interest of GCTea, which in turn entirely owns GCTea Outlets 2B. The company's portfolio includes brands such as PappaRich, Ippudo and Hokkaido Baked Cheese Tart, based on its website. The counter finished Wednesday unchanged at S$0.145, before the announcement.
