Financials Results
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 MARCH 2025
Financials Archive
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Condensed interim consolidated statement of profit or loss and other comprehensive income
Condensed interim statements of financial position
Review of the Group's Financial Performance
Overview
The Group recorded a marginal net profit of S$0.01 million for the six-month period ended 31 March 2025 (“1H2025”), as compared to a net loss of S$0.99 million in the corresponding six-month period ended 31 March 2024 (“1H2024”).
Excluding the one-off adjustment of the Convertible Bonds Issue transaction costs of S$0.2 million incurred in 1H2025, net profit for 1H2025 would have been S$0.21 million (1H2024: Net loss of S$0.99 million).
Revenue
For the sales of doors and shutter systems, the Group typically experiences a fluctuation in revenue contribution from its customers from period to period due to the project-based nature of its business. The Group’s projects differ in their scope and size and are typically non-recurring.
The Group’s revenue for 1H2025 was S$11.13 million, an increase of S$5.60 million from S$5.53 million in 1H2024. The increase in revenue was mainly from the sales of door and shutter systems segment from several projects completed in 1H2025 and export sales.
Cost of sales
Cost of sales increased by S$3.41 million or 92.8% from S$3.67 million in 1H2024 to S$7.08 million in 1H2025. The increase was mainly from increased purchases of raw materials, sub-contractors and labour cost to complete projects, in line with the higher revenue.
Gross profit
Gross profit increased by S$2.19 million or 117.6% from S$1.86 million in 1H2024 to S$4.05 million in 1H2025, and gross profit margin increased from 34% in 1H2024 to approximately 36% in 1H2025. The increase is mainly driven by higher revenue generated from project completion of sales of door and shutter systems in 1H2025.
Other operating income
Other operating income increased by S$0.05 million or 74.6% in 1H2025 from S$0.07 million in 1H2024 to S$0.12 million in 1H2025. The increase was mainly due to government grants and government incentives received in 1H2025.
Marketing and distribution expenses
Marketing and distribution expenses increased by S$0.53 million in 1H2025 from S$0.14 million in 1H2024 to S$0.67 million in 1H2025. The increase was mainly from higher local logistics cost to complete projects (procurement of more rental forklifts and scissor lifts and lorry cranes to transport forklifts and scissor lifts to sites) and higher provision for marketing expenses set aside to support the Group’s planned export market expansion strategy (penetrate new markets, deepen existing partnerships and investment to strengthen our brand equity to enhance long term competitive positioning) in line with the Group’s strategic business focus and strategies.
Administrative expenses
Administrative expenses increased by S$0.82 million or 32.8% from S$2.50 million in 1H2024 to S$3.32 million in 1H2025 mainly due to a one-off transaction cost in relation to Convertible Bonds issue of S$0.20 million, additional headcount salaries and related statutory payments and additional dormitories for workers to cope with production and projects.
Other operating expenses
Other operating expenses decreased by S$0.05 million or 35.0% in 1H2025. The decrease was mainly from lower research and development expense and fewer building security personnel, which is outsourced from a security company.
Other gains and losses
Other gains and losses reversed from a loss of S$0.02 million in 1H2024 to a gain of S$0.06 million in 1H2025.The reversal was mainly from realised and unrealised gains from foreign currency translation on subsidiary’s assets (trade receivables and bank balances) which is primarily denominated in USD.
Finance costs
Finance costs increased by S$2,000 or 2.6% from S$78,000 in 1H2024 to S$80,000 in 1H2025, mainly due to interest incurred on issuance of Convertible Bonds in February 2025. This increase was partially offset by a reduction in interest on lease liabilities.
Income tax expense
The income tax expense increased by S$21,000 from S$29,000 in 1H2024 to S$50,000 in 1H2025. The increase in income tax expense was mainly due to higher taxable profit from subsidiary in 1H2025.
Profit (loss) for the period
As a result of the above, the Group reported a profit of S$0.01 million for 1H2025, as compared to a loss of S$0.99 million in 1H2024.
Review of the Group's Financial Position
Current assets
Current assets increased by S$6.27 million from S$10.39 million as at 30 September 2024 to S$16.66 million as at 31 March 2025. The increase in current assets was mainly due to:
- an increase in cash and cash equivalents of S$2.25 million;
- an increase in trade and other receivables of S$2.14 million corresponding with increased sales on credit from higher revenue from higher project activities.
- an increase in contract assets of S$1.15 million corresponding with higher revenue related to work performed but not yet invoiced; and
- an increase in inventories of S$0.73 million, with more raw materials and supplies purchased and kept as inventories.
Non-current assets
Non-current assets decreased by S$0.86 million, from S$7.28 million as at 30 September 2024 to S$6.42 million as at 31 March 2025. The decrease mainly due to depreciation of property, plant and equipment, and Right-of-Use assets and amortisation of intangible assets.
Current liabilities
Current liabilities increased by S$2.81 million from S$4.27 million as at 30 September 2024 to S$7.08 million as at 31 March 2025. The increase in current liabilities was a result of mainly the following:
- increase in trade and other payables of S$2.72 million, in line with higher revenue from more projects completed;
- increase in contract liabilities which is mainly comprise of deposit received from customers of S$0.08 million:
Non-current liabilities
Non-current liabilities increased by S$2.66 million from S$4.49 million as at 30 September 2024 to S$7.15 million as at 31 March 2025. The increase in non-current liabilities was mainly due to issuance of convertible bonds of S$3.40 million in 1H2025 which was partially offset by a decrease in lease liabilities of S$0.73 million as the remaining lease periods decrease over the contractual lease term.
Capital, reserves and non-controlling interests
Total equity decreased by S$0.05 million from S$8.90 million as at 30 September 2024 to S$8.85 million as at 31 March 2025 mainly due to current period loss, but partially offset by higher contribution from non-controlling interests.
Review of the Group's Cash Flows
Net cash used in operating activities
In 1H2025, the Group generated cash from operating activities before movement in working capital of S$1.05 million. The Group’s cash used in operations amounted to S$0.24 million due to:
- increase in inventories of S$0.73 million
- increase in trade receivables of S$2.14 million
- increase in contract assets (accrued revenue) of S$1.15 million; offset by
- increase in trade and other payables of S$2.65 million
- increase in contract liabilities (deposit received from customers) of S$0.08 million
Net cash used in investing activities
Net cash used in investing activities amounted to S$0.08 million, due to the purchase of property, plant and equipment.
Net cash from financing activities
Net cash from financing activities amounted to S$2.65 million, mainly from the proceeds on issuance of convertible bonds of S$3.40 million, and offset by the repayment of lease liabilities (Right-Of-Use asset) of S$0.75 million.
Commentary
Looking ahead, the Group will continue to focus on sustaining our 1H2025 growth momentum and actively pursue and secure more projects locally and overseas. The Group will have stronger focus on export sales and marketing from 6 months ended 30 September 2025 (“2H2025”), as well as planned actions to revitalise and enhance our strong brand presence.
Despite this, the Group expects the doors and shutters and trading of production components segments to be challenging in the next 6 to 12 months with US trade tariffs uncertainties which may drive up inflation and unrelenting Russia and Ukraine conflict affecting supply chain, pricier raw materials, freight and energy costs and demand for our goods and services as the Group is one of the end-process contractors, and all such factors may affect our export plans and overseas demands.
Nevertheless, the Group will continue with its strategic initiatives of growing our sales (with added focus on exports) and improving operational efficiencies to stay competitive. Locally, the Group will continue sales efforts to capture opportunities from improved Singapore construction industry prospects such as mega public infrastructure projects, housing projects, , future Changi Airport Terminal 5 and Tuas Port development, as well as government investment projects like renewable energy.