Since Kimly is the first listed coffeeshop chain, I would rather the Management use the cash for M& A to gain more Market shares before the rest of the chains starts getting listed. Although the 85m may not be adequate to buy out another target group, they can always issue shares to make up the difference like how they did with the few of the recent aquisitions.

More importantly, they must make use of the first mover advantage and ability to issue shares to grow to become the market leader quickly, in order to monopolize the market.

" The Group is also actively exploring suitable opportunities to grow its business through acquisitions, joint ventures and form strategic alliances with parties who can help us strengthen our market position" .

Kimly posts S$5m Q4 profit on higher revenue

COFFEE shop operator Kimly Limited reported S$4.98 million of net profit attributable to owners of the company for the fourth quarter ended Sept 30, up from S$2.5 million a year ago.

This brings the full fiscal-year net profit to S$21.4 million, 76 per cent more than the preceding year.

But the surge was mainly technical, due to a restructuring exercise in shareholding structure when Kimly was listed on the Catalist board in March this year.

This resulted in S$2.5 million and S$12 million of net profit in Q4 2016 and fiscal 2016, respectively being attributable to non-controlling interests.

Its full-year revenue growth was driven by broad-based growth in both business divisions - the outlet management division and the food retail division.

In line with its healthy financial performance, the board of directors has proposed a final dividend of 0.68 Singapore cent per share to be paid.

Together with the interim dividend of 0.28 Singapore cent per share paid in June 2017, the total dividend declared in fiscal 2017 was 0.96 Singapore cent per share.

Kimly said it anticipates the F& B industry to remain challenging and will remain vigilant about controlling cost, lowering operating expenses and increasing productivity.

" We are aware of the intense competition and tight labour situation within the F& B industry,and therefore we are adopting technology to improve work processes and maximise our manpower resources to boost productivity and operation efficiency," said Kimly executive director Vincent Chia.