Singapore-based barramundi farmer Barramundi Group has released its FY 2023 results over five months after they were due, revealing SGD 11.7 million (USD 8.7 million, EUR 8.3 million) in comprehensive losses for the year.
Barramundi Group is publicly traded on the Oslo Børs, or Euronext Oslo exchange, but was placed on the exchange's “penalty bench” in June 2024 for failing to release its FY 2023 results by 30 May. In September, the company announced a restructuring plan that included hiring KordaMentha, an independent advisory and investment firm, to assist with a comprehensive restructuring scheme to bring it back into financial sustainability.
When the company announced its restructuring plan, the Oslo Børs placed it into its “recovery box” – a special compartment for companies in situations "subject to circumstances that make pricing of the securities particularly uncertain.”
The company also sought relief from the High Court of the Republic of Singapore under the country’s Insolvency, Restructuring, and Dissolution Act. The company wanted a six-month moratorium on any receivership and legal proceedings as it worked to restructure.
According to a release from the company on 7 November, the high court granted it a four-month moratorium from the date of its 11 October application – ending 11 February 2025.
“The company will take this time to carry on negotiations for restructuring funding, as well as a compromise of its debts with creditors,” Barramundi Group said.
Soon after it was granted the new moratorium, the company released its FY 2023 results revealing the extent of its losses.
According to its results, the company posted revenues of SGD 16.6 million (USD 12.4 million, EUR 11.7 million) in FY 2023, down from the SGD 19.7 million (USD 14.7 million, EUR 13.9 million) it posted in FY 2022. The company also posted other income of SGD 5.3 million (USD 3.9 million, EUR 3.7 million), up from SGD 1.3 million (USD 968,000, EUR 918,000).
The company’s revenue drops were partially offset by decreases in expenses. Its raw material expenses dropped from SGD 13.5 million (USD 10 million, EUR 9.5 million) in FY 2022 to SGD 12.7 million (USD 9.5 million, EUR 8.9 million) in FY 2023. Its farm personnel expenses, distribution expenses, and fish mortality expenses all also decreased.
The company’s largest decrease came from administrative expenses, which dropped from SGD 7.4 million (USD 5.5 million, EUR 5.2 million) in FY 2022 to SGD 3.2 million (USD 2.4 million, EUR 2.3 million) in FY 2023.
Overall, the company’s loss before tax decreased, dropping to a loss of SGD 4.5 million (USD 3.3 million, EUR 3.2 million) from a much higher loss before tax of SGD 18.2 million (USD 13.5 million, EUR 12.8 million) in FY 2022. The company’s net loss for the financial year reached SGD 13 million (USD 9.6 million, EUR 9.2 million) in FY 2023, an improvement from the SGD 30.8 million (USD 22.9 million, EUR 21.8 million) net loss for the financial year posted in FY 2022.
It’s total comprehensive loss for the financial year stood at SGD 11.7 million (USD 8.7 million, EUR 8.2 million), an improvement from the SGD 28.9 million (USD 21.5 million, EUR 20.4 million) loss it posted in FY 2022.
In its results, the company said that the group’s assessment of the company as operational is based on multiple factors, including the moratorium order it was granted on 7 November.
“At the date of these financial statements, the bank has issued expressed support for the Moratorium Order of four months sought by the company,” Barramundi Group said. “In addition, no notice of event of default and/or early repayment of loans taken by subsidiary companies has been received.”
The company also said it acquired an SGD 400,000 (USD 297,000, EUR 282,000) bridging loan from a shareholder, which will give it operational runway to finalize its restructuring plans.
Barramundi Group said its cash flow projections for the 12-month period from 31 December 2023 indicate it will be able to meet its debts and obligations over the 12 months, based on reduced operating costs, receipts of trade, receipts of grant income, and other factors.
