SMI was severely impacted by the continuation of the pandemic for the entire financial year. The Travel Retail business was unable to operate as the airport was closed by the airport operator in conformity prevailing government regulations. The businesses in the domestic market were also heavily impacted by restricted operating hours linked to both health and safety issues.
The management team led by CEO, Mark Bedingham has continued to implement very strong and robust cost control measures as well as liaising with our staff and our suppliers to achieve positive outcomes for nearly all of our stakeholders.
The business has continued to be refocused onto Retail, F&B and Logistics and the exit from the Auto Services and Serviced Office business has been successfully concluded.
The Company is well positioned to reopen its Travel Retail business which is expected to start to recover over the course of the next year or so and in addition, the Company has announced some exciting new business directions which we expect to be able to comment on at greater length in the future.
In continuation of the previous announcements made by The Company’s reflecting its new focus on technology-based services including F&B related businesses; the Company confirmed that it plans to launch up to six RoboChef stores within its current financial year and following on the launch of the first outlet, the Company has opened a second outlet in April 2023.
The Company acquired a number of Bitcoin mining machines, as previously announced, the low prices of BTC during most of the year reduced the utilisation of these machines; however the Company is looking to increase activity in the current financial year, and is looking at new sites with advantageous power costs, an agreement has been signed with SOVSYSTEK of Malaysia to identify suitable locations.
The Company has announced on 27 June 2023 that it has signed an agreement to acquire 51% of Provino Logistics Pte. Ltd. in line with the Group’s corporate strategy to diversify and expand into complementary business areas within the Food & Beverage industry. The Board is of the view that the acquisition would allow the Company to further develop its logistics business, an area which the Group already has an existing joint venture in SMI-Senko Logistics Pte. Ltd. with Senko Co., Ltd. (Japan) and combined with the Group’s CEO’s considerable knowledge of, and global network in the field of wine and spirits. This will provide the Group with the new source of revenue, improve profitability, and enhance shareholders’ values.
The Company will continue to look into more new business opportunities in line with announcements made on its new business direction as well as reflecting the core competencies of the Company and its senior management.
President and Chief Executive Officer