GS Holdings (IPO)

GS Holdings: Centralised dishwashing specialist to list on Catalist
GS Holdings, a centralised commercial dishware washing company is seeking to list on the Catalist board.

GS provides dishwashing services for Singapore’s F&B industry, where it commands a 40% market share. The group has a diversified customer base comprising food courts, coffee shops, restaurants, hawker centres, and a public hospital.

Its main value proposition is to help food centres reduce manpower reliance and labour costs, while ensuring the cleanliness of utensils and crockery.

The group is capitalising on the following trends to underpin its prospects:
1) Strong domestic “eating-out” culture
2) Rising income and living standards
3) Stricter regulations on food hygiene after recent spats of food poisoning cases

To this end, the group is looking to fully automate its dishware washing processes and relocate its existing Senoko facility to a larger one at Loyang.

The new facility is expected to commence operations from Mar ‘16 and will help the group cater to an expanding customer base while reducing costs through greater economies of scale.

It is also exploring other value-added services such as the management of waste disposal and kitchen workflow design to complement its current cleaning services.

GS achieved $3.4m (+183.3% y/y) revenue in 1H15, buoyed by additional contracts from Big Box, F&B tenants in shopping malls such as IMM, The Star Vista, and Westgate, as well as increased sales from the Paradise Group and a hospital.

No profit figures or indicative pricing have been disclosed at this point.