Parkson Retail Asia faces ‘significant doubt’ in ability to operate as going concern, says independent auditor

THE independent auditor for Parkson Retail Asia has again raised concerns about the ability of the department store retailer to operate as a going concern.

In a bourse filing on Tuesday (Apr 4), the board of Parkson Retail Asia said the independent auditor has, without qualifying its opinion, included an emphasis of matter in its report for the group’s financial statements for the year ended Dec 31, 2022.

Independent auditor Foo Kon Tan noted that Parkson Retail Asia’s current liabilities exceeded its current assets by S$19.8 million as at Dec 31.

Together with its subsidiaries, the group’s current liabilities exceeded their current assets by S$59.3 million.

“Notwithstanding that the group reported net profit from continuing operations before taxation of S$44.1 million for the year ended Dec 31, 2022… These events or conditions indicate the existence of a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern,” the independent auditor said.

Parkson Retail Asia’s board of directors noted that the independent auditor’s report for the group’s previous 18-month financial period ended December 2021 contained a similar emphasis of matter.

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Shares of Parkson Retail Asia fell 3.2 per cent or S$0.003 to close at S$0.09 on Tuesday, before the announcement.