Page 6 - ar2014

CHAIRMAN’S STATEMENT AND OPERATIONS REVIEW
4
Annual Report 2014 •
c) advertising and promotion expenses decreased from 0.6% of
revenue in FY2013 to 0.4% of revenue in FY2014;
d) depreciation for outlet renovation and equipment decreased
from approximately 2.5% of revenue in FY2013 to approximately
2.3% in FY2014;
e) provision for reinstatement costs of outlets decreased from
0.7% of revenue in FY2013 to 0.4% in FY2014;
f) outlet utilities expenses, including water and electricity
decreased from 2.1% of revenue in FY2013 to 1.9% of revenue
in FY2014; and
g) lower operating lease expenses, mainly storage charges, from
approximately 0.5% in FY2013 to 0.2% in FY2014.
The decrease in S & D expenses as a percentage of revenue
was partially offset by an increase in the foreign worker levies
contributions from approximately 0.9% of revenue in FY2013 to 1.4%
in FY2014.
Administrative expenses
Administrative expenses increased from approximately S$9.3 million
in FY2013 to approximately S$10.1 million in FY2014, an increase of
approximately S$806,000 or 8.6%.
The increase in administrative expenses was mainly due to the
following:
a) an increase in staff cost, inclusive of executive directors’
remuneration, by approximately S$631,000;
b) an increase in insurance expenses by approximately S$51,000;
c) an increase in employees’ unconsumed leave and medical
expenses by approximately S$91,000;
d) an increase in travelling and membership expenses by
approximately S$60,000;
e) an increase in legal, professional and consultancy expenses
by approximately S$53,000; and
f) an increase in repair and maintenance and general expenses
by approximately S$54,000.
The increase in administrative expenses was partially offset by
decreases in stamp duties, donation and sponsorship expenses
which amounted to approximately S$122,000.
Other expenses
Other expenses increased by approximately S$358,000 or 42.6%
from S$841,000 in FY2013 to S$1.2 million in FY2014, mainly due to
the following: