Retail Holdings N.V. Announces First Half 2020 Results

The financial results for the period, as well as the historic comparables, have been materially impacted both by the sale, effective March 31, 2019, of the entire equity of Retail Holdings Bhold B.V., an intermediate subsidiary of the Company, which at that date owned 56.99% of the equity of Singer Bangladesh Limited ("Singer Bangladesh"), and by the emergence, in late 2019 or early in 2020, of the COVID 19 Pandemic and the resulting impact on the world and India economy, and the operations of Singer India Limited ("Singer India").  As a result of the sale of the ownership of Singer Bangladesh, the results for that operation are included as a Discontinued Operation for the three months ended March 31, 2019, and are excluded for the second quarter of 2019 and for the full first half of 2020.

First Half Results 

Continuing Operations

The Company's consolidated Revenue from Continuing Operations, now only the operations at Singer India, was $21.0 million, for the six months ended June 30, 2020. This compares to consolidated Revenue from Continuing Operations of $37.1 million for the same period in 2019, a decrease, as measured in U.S. dollars, of 43.4%. The decline of revenue is primarily  a consequence of the lockdown in India due to the Covid 19 Pandemic.  Measured in local currency, Revenue at Singer India declined 40.8% during the first half of 2020, as compared with the same period prior year.

Included in Consolidated Revenue are royalties from third parties (Thailand) of $151 thousand in the first half of 2020, as compared to $350 thousand in the first half of 2019.  The decline in royalty reflects a slowdown in the Thailand business, attributable, in part, to the COVID 19 Pandemic and resulting lockdown.

Gross profit from Continuing Operations for the six months ended June 30, 2020 was $4.8 million, representing a Gross profit margin of 22.7%, as compared to $8.6 million and a Gross profit margin of 23.1% for the six months ended June 30, 2019.

Selling and administrative expenses ("S&A") from Continuing Operations for the six months ended June 30, 2020 were $5.7 million, representing 27.0% of Revenue, as compared to $9.0 million and 24.2% of Revenue for the six months ended June 30, 2019. The increase in S&A expenses as a percentage of Revenue in 2020, compared to the same period prior year, reflects the inability to reduce costs as sharply as the fall off in Revenue, despite a substantial decline in the S&A expenses amount. Of the Company's total S&A expenses, $4.5 million reflects S&A expenses at Singer India during the first half of 2020 ($6.9 million in the first half of 2019), and $1.2 million represents S&A expenses at Corporate in the 2020 period ($2.0 million in the 2019 period).

Other expenses, primarily, royalty paid to SVP for the use of the Singer trademark by Singer Asia and Singer India, totaled $0.2 million for the first half of 2020, and $0.3 million for the first half of 2019. Royalty is calculated essentially at 0.88% of Revenue.

Results from operating activities from Continuing Operations for the six months ending June 30, 2020 and June 30, 2019 were a loss of $1.0 million and $0.5 million respectively. The higher loss reflects the flow through of the decrease in Revenue and Gross profit.

Net finance costs from Continuing Operations for the six months ended June 30, 2020 were $0.l million as compared to Net finance costs of nil for the same period in 2019. The swing in net finance costs primarily reflects an increase in interest expense at Singer India as a result of higher borrowings.

The Company's Loss from Continuing Operations before income taxes was $1.1 million for the six months ended June 30, 2020, compared to a Loss from Continuing Operations of $0.6 million for the same period in 2019. Income tax credit from Continuing Operations for the six-months ended June 30, 2020 was $35 thousand and income tax expense for 2019 were $0.3 million. For the six months ended June 30, 2020, the Company's Loss from Continuing Operations after tax was $1.1 million, compared to a Loss from Continuing Operations after tax of $0.9 million for the same period in 2019.

Discontinued Operations

Profit from Discontinued Operations, net of tax, for the three-month period ended March 31, 2019 was $42.9 million. Of this amount, $1.6 million represents Profit from the ongoing business operations of Singer Bangladesh for the three-month period January 1 – March 31, 2019. The balance of $41.3 million represents the Gain on the disposal of Retail Holdings Bhold B.V, the entity holding the Company's equity in Singer Bangladesh, effective March 31. 2019.

Total Company

The Company's loss for the period ended June 30, 2020 was $1.1 million, compared to a profit of $42.0 million in the same period prior year. The substantial decrease in profit primarily reflects the Gain in the 2019 period on the disposal of Retail Holdings Bhold B.V., with no comparable Gain in 2020. 

The loss attributable to equity holders of Retail Holdings was $ 0.8 million for the six months ended June 30, 2020, as compared to a profit of $21.2 million for the same period prior year. A loss of $0.2 million is attributable to minority shareholders at the Company and its subsidiaries for the six months ended June 30, 2020, as compared to profit of $20.8 million for the six months ended June 30, 2019. The loss attributable to the owners of Retail Holdings, 79.4% of the total Company loss in the first half of 2020, compares to 50.5% of the total Company profit in the same period prior year. The higher percentage attributable to equity holders of Retail Holdings in 2020 reflects S&A expenses at Retail Holdings Corporate, which represents a larger percentage of the smaller consolidated scale of the Company.

The loss attributable to Retail Holdings' shareholders is equivalent to earnings per Share of $0.18 for the six months ended June 30, 2020, as compared to $4.56 per Share profit attributable to Retail Holdings' shareholders for the same period prior year.

About Retail Holdings

Retail Holdings N.V. is a holding company with one principal asset, a 54.1% equity interest in Singer Asia Limited, which in turn, owns 59.1% of Singer India Limited, an Indian public company. Singer India's principal business is the sale of sewing machines and appliances throughout India. It is primarily a wholesale business supplemented by a relatively small number of direct distribution points and a factory/assembly facility. Additional financial and other information about Retail Holdings N.V. may be found at the Corporate/Investor section of the Retail Holdings' website www.retailholdings.com. Price quotations for Retail Holdings' shares are available on the "Pink Sheet" quotation service under the symbol "RHDGF".

RETAIL HOLDINGS N.V. AND SUBSIDIARIES CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME  FOR THE SIX MONTHS ENDED JUNE 30, 2020 AND 2019 (Unaudited) In thousands of US Dollars except per Share data
			June 30, 2020		June 30, 2019
Continuing Operations
Revenue			20,999		37,128
Cost of sales			16,241		28,533
Gross profit			4,758		8,595
Other income			132		155
Selling and administrative expenses			(5,672)		(8,968)
Other expenses			(185)		(327)
Results from operating activities			(967)		(545)
Finance income			69		195
Finance costs			(203)		(207)
Net finance costs			(134)		(12)
Loss before income taxes			(1,101)		(557)
Income tax expense			35		(332)
Loss from Continuing Operations			(1,066)		(889)
Discontinued Operations
Profit from Discontinued Operation (Bangladesh)			-		1,612
Gain on disposal of Retail Holdings Bhold B.V.			-		41,260
Profit from Discontinued Operations, net of tax			-		42,872
Profit/(Loss) for the period			(1,066)		41,983
Attributable to:
Owners of Retail Holdings			(846)		21,187
Non-controlling interests			(220)		20,796
Profit /(Loss) for the period			(1,066)		41,983
Earnings/(Loss) per Share (US Dollars)			(0.18)		4.56
Loss per Share – Continuing Operations  (US Dollars) Werbung Mehr Nachrichten zur Retail Holdings Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 03.06.24 - PR Newswire Rightmove Plc - Total Voting Rights 03.06.24 - PR Newswire Stellar Asset Management Ltd - Form 8.3 - Equals Group Plc 03.06.24 - PR Newswire Augmentum Fintech plc - Total Voting Rights Importverbot für Uran    Hammernachricht im Uran-Superzyklus weiterlesen» Anzeige wo-site-teaser-box-17145_site-teaser-box_2024-06-03_07%253A00%253A00_2024-06-04_09%253A00%253A59