Daidomon Group Plc's auditors have issued a disclaimer on the company's 2005 financial results. "It can be considered that the numbers, which represent the company's financial status and operating outcome as presented in its financial statements, failed to adequately and/or properly reflect the actual position of the company," the Stock Exchange of Thailand (SET) said in a statement yesterday.

The restaurant chain's 2005 net loss narrowed to Bt238.4 million from Bt783.1 million in 2004.

The company's operating loss in 2005 amounted to Bt71.2 million due mainly to a Bt115.4-million decline in revenues, according to the company's financial statement. At the same time, the company's costs last year declined Bt212.6 million - or 40.7 per

cent - from the previous year, resulting in a reduced net loss.

The company added that Bt106.2 million in extraordinary items booked in 2005 also contributed to the year's net loss. Of the total, Bt67.5 million was incurred from losses associated with asset impairment, Bt2 million was losses from sales of and write-offs of fixed assets and the rest from fines as a result of defaulting on loans.

Earlier this year reports surfaced that Daidomon was negotiating with the Hot Pot sukiyaki chain to form a cross-holding partnership after negotiations with MK Restaurant collapsed.

Wichai Tongtaeng, a major shareholder of Prasit Patana Plc, which operates Phyathai Hospital, took over the financially ailing firm a few years ago. Daidomon's stock is in danger of being de-listed from the stock market after its shareholders' equity plunged into negative territory.

In 2005, the Securities and Exchange Commission filed a criminal complaint against three former Daidomon executives, accusing them of of cooking the books and misleading the public about the company's true financial condition. The three executives allegedly listed false revenues and expenses in financial statements for 2002 and the first and second quarters of 2003.