Southern Archipelago posts FY2025 net loss of S$0.9m as revenue falls 18% to S$4.0m; auditors highlight covenant breach and going‑concern risks with NTA at S$0.93m
Summary:
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Group revenue from sterilisation services declined 18% year on year to S$3.96 million on lower volumes in Indonesia and adverse FX translation, while other gains dropped to S$0.08 million from S$0.27 million.
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The Group swung from a S$0.24 million pre‑tax profit to a S$0.74 million pre‑tax loss, and from a S$0.15 million net profit to a S$0.94 million net loss, despite tighter control of employee and other operating expenses.
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Net asset value shrank to S$0.93 million (0.0034 cents per share) from S$2.44 million, with total borrowings up 25% to S$8.40 million and net current liabilities widening to S$5.22 million.
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Management discloses a breach of a bank loan covenant requiring minimum Group NTA of S$2.0 million, creating a potential event of default on S$1.0 million of bank debt, though the lender has verbally indicated willingness to accommodate pending an April 2026 review.
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The board states that going‑concern remains appropriate based on continued cash generation from the sterilisation unit, planned fund‑raising (bank loans, shareholder loans and equity) and a written financial‑support undertaking from the controlling shareholder.