NOT FOR DISTRIBUTION IN THE UNITED STATES
TORONTO, Aug. 27, 2018 (GLOBE NEWSWIRE) — Sarment Holding Limited (“Sarment” or the “Company”), a leader in global luxury lifestyle management and the pre-eminent marketplace for the high net worth individuals and ultra-high net worth individuals market segment announced today its second quarter 2018 financial results for the period ended June 30, 2018.
For the three-month period ended June 30, 2018, total revenue increased 62.5% to US$5.9 million compared to US$3.6 million for the same period in 2017. Gross Profit for the quarter increased 61% to US$1.8 million, or 30% as a percentage of revenue versus US$1.1 million or 30% as a percentage of revenue during the comparative period in 2017.
During the second quarter, revenue growth was robust across all business units. The revenue of the China business unit grew by 58.6% from the three months ended June 30, 2017 to the three months ended June 30, 2018. The Hong Kong business unit achieved revenue growth of 78.0% from the three months ended June 30, 2017 to the three months ended June 30, 2018 while the Singapore business unit achieved revenue growth of 43.7% from the three months ended June 30, 2017 to the three months ended June 30, 2018.
Beginning February 2018, our Customer Experience Management Platform (“CEM”) system has been live and able to process members purchases. For the six months ended June 30, 2018, sales to members through the CEM are not yet material to total revenue for the period. As of June 30, 2018, there are 588 registered members of which 240 are active members. This represented a growth of 473 registered members and 149 active members when compared to the first quarter ended March 31, 2018. We have also processed sales of a number of our existing customers through the CEM and it has met all functionality and performance expectations
Operating expenses increased by 95.6% or US$3.8 million, from US$3.9 million in the three months ended June 30, 2017 to US$7.7 million in the three months ended June 30, 2018. The increase in operating expenses was mainly attributed to the following items:
For the three months
ended June 30 2018 2017Increase/ (Decrease) US$’000 US$’000%US$’000 Staff costs 3,506 2,23956.61,267IPO expenses 671 -N/A671Rental of premises 311 15896.8153Foreign exchange gain (loss) (1,370)301N/A1,671
Foreign exchange loss of US$1.4 million for the three months ended June 30, 2018 (2017: foreign exchange gain of $0.3 million) represented $0.8 million (2017: foreign exchange gain of $0.1 million), $0.5 million (2017: foreign exchange gain of $0.2 million) and $0.1 million (2017: Nil) of the exchange loss attributed to the Singapore business unit, China and Hong Kong business unit, respectively.
As a result of the foregoing, EBITDA amounted to a loss of US$5.8 million during the second quarter of 2018, when compared to a loss of US$2.8 million in the corresponding period in 2017.
On August 21, 2018, the Company completed the IPO of an aggregate of 6,057,553 ordinary shares at a price of CAD$3.15 per ordinary share and its shares started trading on the TSX Venture Exchange (“TSXV”) under the symbol SAIS. Gross proceeds of the offering were US$14.61 million (CAD$19 million). The Company has granted the agents an over-allotment option (the “Over-Allotment Option”), exercisable in whole or in part for a period of 30 days following the closing of the IPO (“Closing”), to purchase up to an additional 908,632 ordinary shares at the IPO price of CAD$3.15 per ordinary share for additional gross proceeds of approximately CAD$2,862,191, assuming the Over-Allotment Option is exercised in full.
“I am very pleased with the continued strong progress and momentum across our various business units while we also continue to successfully roll-out our proprietary digital platform with double digit monthly growth rates in our immediate geographies,” noted Quentin Chiarugi, CEO of Sarment. “We are also extremely excited as we near the end of a long journey in completing Sarment’s IPO on the TSXV, which will now enable us to have access to growth capital as we continue to execute against our strategic growth plan.”
Sarment is Singapore-based and operates a luxury marketplace focused on offering curated luxury goods and services to High-Net-Worth and Ultra-High-Net-Worth individuals. Sarment’s AI-based digital ecosystem provides intelligent personal services focusing on creating unique luxury experiences. Sarment’s objective is to become the leader in global luxury lifestyle management and the preeminent marketplace for this market segment. Since its establishment in 2012, Sarment has expanded throughout Asia and is now seeking global expansion.
Certain statements contained in this press release contain “forward-looking information” (“forward-looking statements”) within the meaning of Canadian securities laws, including statements regarding the successful completion of the Offering and the anticipated Closing Date. These forward-looking statements represent Sarment‘s expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, including conditions to closing this Offering, many of which are outside of Sarment’s control, which could cause actual results to differ materially from the results discussed in the forward-looking statements.
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Sarment does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Sarment to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Sarment’s final prospectus filed with the applicable Canadian securities regulatory authorities in connection with the Offering. The risk factors and other factors noted in Sarment’s final prospectus could cause actual events or Sarment’s actual results to differ materially from those contained in any forward-looking statement.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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