Lifebrandz sinks deeper into the red with $4.44m loss

Lifebrandz sinks deeper into the red with $4.44m loss

LIFESTYLE company Lifebrandz has deepened its losses to $4.44 million for the full year ended July 31, from its net loss of $2.47 million a year ago.

Loss per share was higher at 0.24 of a cent from 0.13 cent, while net asset value fell to 0.13 cent from 0.37 cent previously.

Revenue from its continuing operations registered a 17 per cent slump to $29.01 million from $34.82 million previously, with the decline attributed to the revamp of its business operations and the closure of underperforming outlets in Clarke Quay.

The group shut Cafe Del Mar in Sentosa with the expiration of its franchise licence; its Lunar Cafe in Resorts World Sentosa was also shut due to slow business.

Lifebrandz said: "Managing and controlling the cost of operations will remain a top priority while the group focuses on improving and expanding the existing portfolio of brands and its performance." The owner of brands such as Zirca, Rebel and Mulligan's added restaurant bar Aquanova in Clarke Quay to its club-and-dining portfolio last December.

The group has been fed legal papers by Giorgio Ferrari and Mint Studio Group. In the continued legal tussle with Giorgio Ferrari, the result of which is still pending, the liquor distributor had turned to its last hope, the Court of Appeal, in August to retrieve $5.82 million in damages as well as about $700,000 in refund of advertising and promotion funds. The High Court dismissed its claim in May and the subsequent appeal in July.

The second writ of summons was filed in July on subsidiary Cannery Leisure for a sum of about $730,000 from five contracts for renovation works. It is still ongoing and the group said it will defend its case "vigorously".

Lifebrandz shares ended trading at 0.8 cent on Wednesday.

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