FJ Benjamin Holdings gets 12-month extension to exit SGX watchlist

After booking pre-tax losses for three straight years, the retailer bounced back with $939,000 profit in FY2018/2019.

Struggling retailer FJ Benjamin Holdings has been granted a 12-month extension, ending 4 December 2020, to exit the Singapore Exchange (SGX) watchlist, an announcement revealed.

The company was first placed on the watchlist of the Singapore Exchange Securities Trading (SGX-ST) in December 2016 after reporting pre-tax losses for more than three consecutive financial years and a market cap of less than $40m. It was given 36 months to meet the requirements for removal.

Also read: Six more firms join SGX watchlist

FJ Benjamin Holdings applied for an extension for its cure period in May after it recorded a consolidated pre-tax profit of approximately $939,000 for the financial year ended 30 June, as a result of discontinuing its loss-making brands and implementing cost control measures.

It explained that the company’s small market cap was a result of the market having priced the company’s shares at a significant discount. “The undervaluation of the company’s shares by the market is reflected in the company’s low price-to-book ratio of 0.534, which has been derived based on the two market price per share of the company of $0.031 as at 29 March, and the net asset value for the group per share of the company of $0.0581 as at 31 March 2019,” FJ Benjamin Holdings explained.

It is reportedly continuing to explore and undertake various strategic initiatives to improve the market's perception of it, with the aim of meeting or exceeding the $40m threshold in the near future.

Ongoing improvements to its corporate prospects are also underway as the firm looks to cushion itself from the challenges arising from the retail outlook in Singapore, Malaysia and Indonesia, as well as changes in consumer behaviour.