Link: https://links.sgx.com/1.0.0/corporate-announcements/FLWHTFHD65LGV24W/f8c86af39a91b52cf9fa4a363ba36b529e4f2974427135e445d2eea21b5e3af5

Summary:

• Revenue: S$25.2m, up 84% YoY (1H2024: S$13.7m), led by Services (S$15.3m vs S$4.7m) and stronger Mooring division activity.

• Gross profit: S$10.9m, up 115% YoY, with cost of sales rising slower than revenue, indicating margin expansion.

• Net profit/loss: S$3.5m profit vs S$1.3m loss YoY; basic EPS 1.37 cents, diluted 1.28 cents.

• Operating results: Mooring division revenue S$16.1m (vs S$3.4m), segment profit S$5.8m; Yard also profitable (S$0.6m); Corporate costs weighed S$2.8m but offset by operating gains.

• Segment mix: Revenue by division – Mooring S$16.1m, Rigging & Heavy Lifting S$2.1m, Marine Supplies S$1.0m, Renewable Energy S$1.9m, Yard S$4.2m; majority recognized over time (S$19.8m).

• Expenses: Administrative expenses modestly higher at S$4.7m (+5% YoY); other expenses down to S$0.6m (from S$0.9m); R&D lower at S$0.03m.

• Finance costs: S$1.05m (slightly lower YoY), comprising loans/borrowings S$0.41m, leases S$0.20m, convertible note S$0.38m, others S$0.05m; interest income S$0.25m.

• Cash flow: Operating cash inflow S$5.3m (vs outflow S$0.6m YoY); investing inflow S$3.3m (fixed deposits matured), financing outflow S$2.7m; cash and equivalents rose to S$18.5m (from S$13.0m at start of period).

• Balance sheet: Net assets S$22.5m (Dec-2024: S$19.1m); current assets S$44.0m vs current liabilities S$15.5m (net current assets S$28.5m).

• Borrowings: Total loans and borrowings S$23.7m (Dec-2024: S$25.0m), including secured commercial property loan S$10.6m current/non-current and shareholder loan S$13.0m.

• Convertible notes: CN2 liability S$5.48m (interest 9% p.a., maturity 22 Nov 2026); equity component S$0.41m unchanged; potential 17.48m new shares on conversion at S$0.286.

• Working capital: Trade receivables increased (current S$7.3m; non-current S$1.4m), contract assets S$6.1m, inventories slightly lower at S$6.1m; payables and accruals higher with project activity.

• Tax: Income tax expense S$0.79m (vs S$0.00m low base YoY); effective tax reflects return to profitability and prior-year under-provision.