SINGAPORE: mDR Limited has notified the Singapore Exchange that its four business segments have resumed operations amid restructuring and salary cuts.
MDR’s business segments including After Market Services (AMS), Distribution Management Solutions (DMS), Digital Inkjet Printing for Out-Of-Home Advertising Solutions (DPAS) and Investment, some of which were temporarily closed during the Circuit Breaker Period in Singapore, are fully operational since June 2020.
Upon the cessation of the M1 distributorship from 19 September 20201, Group’s subsidiary, HandphoneShop Pte Ltd (HPL) embarked on the rationalisation of its Retail network.
Of HPL’s total 8 stores, HPL has closed 4 stores and is currently in the process of closing an additional 5th store by October-end.
HPL has converted the rest of the 3 stores to multi-brand concept stores offering mobile devices, gadgets and accessories. In addition to the rationalisation of the retail network, the MDR Limited’s Singapore operations have undertaken a restructuring exercise in line with the business requirements.
DPAS division in Malaysia has also carried a restructuring exercise as per operational and business requirements and implemented salary cuts of 10%-20%.
In view of the current challenging and uncertain business environment, the Group’s Executive Directors and senior management have voluntarily taken a 10% salary cut effective from October 2020.
The Company’s independent directors (other than those recently appointed in September 2020) have also voluntarily taken an approximately 25% cut in Directors’ fees effective from October 2020.
Financial assessments and impact The resumption of the business and operations of the various business divisions has resulted in improved sales and revenue in Q3-20 compared to Q2-20.
On a Year-on-Year basis, Group’s revenue for the period ended 30 September 2020 (based on preliminary review and estimates of the unaudited management accounts), is approximately 34.4% lower than the corresponding period in FY2019, due to, inter alia, a decline in sales from the above-mentioned temporary closure of business operations of certain divisions during the CB Period / MCO Period, subdued demand from domestic customers, and significant decrease in tourists.
Various support measures from the Singapore Government such as Wage credit, Job Support Scheme, rental assistance and/or rental subsidies from the malls, and the various cost-control measures undertaken by the Group, have however helped in mitigating the impact on the Group’s financial performance. Barring any unforeseen circumstances, the Group expects an overall decline in revenue and net income for FY2020.
However, the Group’s financial position is expected to be stable taking into account the net asset value and cash and bank balances available to the Group.
“MDR Limited will continue to monitor the evolving situation amid the COVID-19 outbreak and will make the appropriate announcement to keep shareholders updated on any material developments,” a news release said.
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