Back 09 Jul 2025

Rich Capital FY2025: Revenue Falls 75% to S$1.24M, Narrower Net Loss at S$1.07M

Link: https://links.sgx.com/1.0.0/corporate-announcements/XXL76THBONKSNECT/03b098645c5ef7724681650997bb19f00b60c15015910eab49520c17b4125952

Summary

  • Financial performance: Revenue dropped sharply by 75% to S$1.24 million in FY2025 from S$4.89 million in FY2024, mainly because most construction projects neared completion. Cost of sales fell similarly, resulting in a smaller gross profit of S$0.14 million. Net loss slightly narrowed to S$1.07 million compared to a S$1.14 million loss in FY2024.

  • Balance sheet: Net asset value per share declined from 0.04 cents to 0.03 cents. Contract assets and receivables decreased as projects completed, while payables fell by about 38% due to lower accrued project costs.

  • Cash flow: Net cash used in operations was S$1.19 million, with total cash outflow of S$1.24 million for the year.

  • Corporate updates: Completed disposal of Rich Batam Pte Ltd for S$1; the investment in its indirect subsidiary Oxley Batam Pte Ltd remains fully impaired, with related legal claims formally withdrawn.

  • Outlook: Management maintains a cautiously optimistic view on the real estate and construction sectors but expects FY2026 revenue to decline given current high interest rates and subdued global economic outlook. It plans to adopt a prudent approach in taking on new projects.