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Kresta Holdings Limited has reported revenue of $12,413,000 for the first half of 2020 which was 46.12% lower than the corresponding period (2019: $23,041,000).
The company attributes the fall to the outbreak of Covid-19 and sale of Curtain wonderland Pty Ltd at the end of December 2019. The Group recorded a net loss for the period of $128,000 which compared with a net loss after tax of $6,678,000 for the comparative period, however the loss was tempered by over $1.3M in Jobkeeper payments, plus rent reductions and payroll tax deferrals.
The company shut its 22 Australian stores temporarily during the early stages of the pandemic, with 130 staff stood down during the closure.
The company’s future remains precarious with the ASX set to delist the company in line with the ASX’s long term suspended entity policy. The company’s auditors Bentleys also indicated in the latest financial report that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern.
During the first six months of 2020, Kresta entered into a Deed of Parent Company Support with Dream Curtain Holding Co (DCH), following an internal corporate restructure whereby Van Dairy (Hong Kong) Co. Ltd transferred its 84.35% shares in Kresta to DCH.
DCH agreed to subordinate the debt owned by Kresta to Van Dairy in favour of all other creditors of Kresta in order that Kresta may continue trading and also agreed to provide the $10million cash support when Kresta needs and requires.
In July 2020, Kresta’s overseas suppliers had cash flow issues and pressure from local authorities to recover debt and made a request to Kresta to repay the balance of invoices owing. The group asked for assistance from DCH and Kresta drew down $8.5 million from the $10 million parent loan to pay the overseas suppliers at the end of July.
