Latest Financials

Condensed Interim Financial Statements For the 6 Months and 12 Months Ended 31 March 2025

Consolidated Income Statement

Consolidated Statement of Comprehensive Income

Statement of Financial Position

Review of the Performance of the Group

Consolidated Statement of Profit or Loss

2HFY25 – for the 6 months ended 31 March 2025
1HFY25 – for the 6 months ended 30 September 2024
2HFY24 – for the 6 months ended 31 March 2024
FY25 – for the 12 months ended 31 March 2025
FY24 – for the 12 months ended 31 March 2024

Review of Results for the 6 Months and 12 Months Ended 31 March 2025

Revenue

Group revenue improved notably for the periods under review, due to higher level of construction activity in Singapore driving increased demand for construction services. Revenue for FY25 rose 10.6% to $337.8 million in FY25, from $305.3 million in FY24. For 2HFY25, revenue amounted to $183.3 million, which was a 15.4% and 18.7% increase respectively compared to $158.9 million in 2HFY24 and $154.5 million in 1HFY25.

By capitalizing on the robust demand for construction services in Singapore, the Group expanded its order book by 20%, from $250 million in April 2024 to $300 million in April 2025.

Gross Profit

The higher revenue, coupled with continued stringent cost control efforts, resulted in an increase in the Group’s gross profit and gross profit margin to $35.4 million and 10.5% respectively in FY25 (FY24: $14.4 million and 4.7%). Gross profit and gross profit margin in 2HFY25 had also similarly risen to $17.8 million and 9.7% respectively (2HFY24: $1.5 million and 0.9%), with 2HFY24 affected by certain lower-margin projects undertaken amid challenging market conditions and subdued construction activity.

Compared to 1HFY25, gross profit margin for 2HFY25 was lower than the 11.4% in 1HFY25, taking into account the certain lower-margin projects undertaken in Malaysia.

Other Income

The Group recorded higher other income of $2.3 million for FY25 (FY24: $2.2 million), mainly due to a higher gain from the disposal of old equipment in FY25.

As part of the Group’s ongoing fleet renewal plan, older equipment is disposed of and replaced with newer and more efficient models. This approach also resulted in higher gain from disposal of old equipment in FY25.

Other income for 2HFY25 of $1.1 million was lower than the $1.5 million in 2HFY24 and $1.2 million in 1HFY25, as a result of a smaller gain from the disposal of old equipment in 2HFY25.

Operating Expenses

Other operating expenses rose by 6.7% to $25.0 million in FY25 (FY24: $23.5 million) and by 1.4% to $12.5 million in 2HFY25 (2HFY24: $12.3 million). The increases were in line with the higher business activity, and increased staff costs that reflect annual salary increments aimed at aligning with inflation.

The Group’s depreciation of right-of-use assets include depreciation charge of $2.4 million in FY25 (FY24: $2.4 million) and $1.2 million in 2HFY25 (2HFY24: $1.2 million) recorded in relation to its headquarters located at No 2, Tanjong Penjuru Crescent (“2TPC”).

In 2HFY24, the Group recovered $1.3 million in certain long outstanding bad debts that had been fully impaired previously.

The Group also recorded a foreign exchange gain of $1.7 million for FY25, compared to a loss of $1.7 million in FY24, due to the appreciation of the Malaysian Ringgit (“MYR”) and Thai Baht (“THB”) against the Group’s functional currency, the Singapore Dollar (“SGD”). Since March 2024, MYR and THB had strengthened by approximately 6% and 7% respectively, against SGD.

Net Finance Expenses

Net interest expenses declined to $5.4 million for FY25 (FY24: $5.5 million) and $2.5 million in 2HFY25 (2HFY24: $2.9 million; 1HFY25: $2.9 million). The Group utilised a higher level of floating interest rate trade facilities in FY25 and 2HFY25, in line with increased construction activity in Singapore. Nevertheless, net interest expenses fell, mainly due to lower floating interest rates charged by financial institutions in FY25. In addition, since December 2023, the Group also launched a multi-series unsecured commercial paper facility programme (“SDAX CP Facility Programme”) to progressively replace higher-cost loans as part of ongoing efforts to reduce its borrowing costs.

With respect to the lease liability relating to 2TPC, the Group recognised an interest expense of $1.1 million for FY25 (FY24: $1.1 million) and $0.6 million for 2HFY25 (2HFY24: $0.5 million; 1HFY25: $0.5 million).

Share of Profit/(Loss) of Associates

The Group recorded a $0.9 million share of profit from associates in FY25, compared to a $0.8 million loss in FY24. In 2HFY25, the share of profit was $0.6 million, versus a loss of $0.9 million in 2HFY24 and a profit of $0.3 million in 1HFY25. The improvements were due to higher contribution from its associates’ business operations, partially offset by revaluation losses following the independent valuation of an associate company’s investment property.

Profit/(Loss) for the period/year

In view of the above, the Group recorded a net profit before tax of $2.6 million in FY25 and $0.2 million in 2HFY25. This marked a significant turnaround from a loss before tax of $20.4 million in FY24 and $16.4 million in 2HFY24.

Earnings before interest, tax, depreciation and amortization (EBITDA) recovered to $31.4 million in FY25 (FY24: $9.2 million) and $14.0 million in 2HFY25, from a negative EBITDA of $1.3 million in 2HFY24.

Earnings per share amounted to 0.05 cent for FY25, compared to a loss per share of 0.57 cent in FY24. For 2HFY25, loss per share narrowed to 0.01 cent for 2HFY25, from 0.49 cent in 2HFY24.

Statement Of Financial Position

Non-Current Assets

Property, Plant and Equipment

Net book value of property, plant and equipment (“PPE”) as at 31 March 2025 was $115.8 million (31 March 2024: $115.3 million).

In FY25, as part of its ongoing fleet renewal plan, the Group invested $18.9 million in new PPE. In addition, the Group recapitalised $2.0 million in inventories as PPE following a reassessment of their economic use. Conversely, the Group recapitalised $0.2 million and $1.4 million in PPE as inventories and assets held for sale respectively.

The Group disposed of plant and equipment with carrying values of $2.9 million, resulting in a $1.4 million gain. Depreciation charge for FY25 amounted to $17.0 million (FY24: $18.0 million).

Right-of-use Assets

Right-of-use asset and lease liability relating to 2TPC amounted to $31.8 million (31 March 2024: $34.2 million) and $34.8 million respectively as at 31 March 2025 (31 March 2024: $36.6 million).

Net Current Liabilities

As at 31 March 2025, net current liabilities stood at $2.2 million (31 March 2024: $6.1 million). Current ratio (current assets / current liabilities) was 0.99 (31 March 2024: 0.97).

Net current liabilities as at 31 March 2025 factored in:

• Increased utilisation of revolving trade facilities of short tenures of about 2 to 5 months to support the higher level of construction activity; and
• Slower collections from certain customers which the Group is monitoring closely.

Notwithstanding the Group’s net current liability position as at 31 March 2025, the Group has assessed the sources of liquidity and funding available to the Group, believes that the Group will be able to meet its obligations due within the next 12 months. These include committed unutilised credit facilities (which also contains overdraft facilities) of $29 million as at 31 March 2025 (31 March 2024: $31 million), projected net operating cash inflows for the next 12 months and available cash reserves as at 31 March 2025 to finance the Group’s working capital and day-to-day operation requirements.

In addition, the Group held higher inventories of $24.0 million as at 31 March 2025 (31 March 2024: $20.2 million), to support the anticipated increase in construction, equipment sales and leasing activities.

Trade and other receivables and contract assets increased by $20.6 million to $176.9 million (31 March 2024: $156.3 million), while trade and other payables and contract liabilities increased by $11.6 million to $124.7 million (31 March 2024: $113.1 million), in view of the higher level of construction activity in Singapore in FY25.

As at 31 March 2025, assets held for sale stood at $3.5 million (31 March 2024: $4.7).

Loans and Borrowings

The Group’s loans and borrowings stood at $101.7 million as at 31 March 2025 (31 March 2024: $96.7 million). Of these, $67.8 million or 67% were floating interest rate loans (31 March 2024: $58.9 million, 61%). The increase was mainly due to higher drawdowns of trade facilities to finance its business operations, in line with increased construction activity in Singapore and slower collections from certain customers.

In FY25, the Group issued $41.3 million in unsecured commercial papers under SDAX CP Facility Programme. $34.5 million of such commercial papers matured and were fully redeemed by external parties in FY25. As at 31 March 2025, outstanding commercial papers amounted to $12.7 million (31 March 2024: $5.9 million), with interests payable ranging from 5.2% to 5.6% per annum and maturities on 19 June 2025 and 19 August 2925.

The debt-to-equity ratio was 0.95 as at 31 March 2025 (31 March 2024: 0.92).

Equity and Net Asset Value

In FY25, the Group repurchased 17.2 million ordinary shares for a total consideration of $0.2 million. Following this, 94.1 million shares with carrying values of $3.2 million were held as treasury shares as at 31 March 2025 (31 March 2024: 76.9 million shares with $3.1 million).

As at 31 March 2025, the Group’s total equity stood at $107.4 million (31 March 2024: $105.3 million), while net asset value per ordinary share was 3.1 cents (31 March 2024: 3.0 cents).

Cash Flow

Cash Flow from Operating Activities

The Group generated positive cash flows from operating activities with a net cash inflow of $12.0 million for FY25 (FY24: $17.4 million) and $6.7 million for 2HFY25 (2HFY24: $10.7 million; 1HFY25: $5.3 million). The lower net cash inflows in FY25 and 2HFY25 were mainly due to timing differences between billings and receipt of customers’ payments. The Group remains vigilant over slower collections from certain customers and continues to monitor these accounts closely.

Cash Flow from Investing Activities

Net cash outflow from investing activities declined to $3.7 million for FY25 (FY24: $7.3 million), mainly due to higher proceeds from disposal of old equipment as part of the Group’s fleet renewal plan in FY25. In addition, the Group invested $0.2 million in property development projects in Malaysia in FY25 (FY24: $1.2 million).

For 2HFY25, the net cash outflow amounted to $2.9 million, compared to $1.6 million in 2HFY24 and $0.8 million in 1HFY25, reflecting higher capital expenditure incurred in 2HFY25.

Cash Flow from Financing Activities

Net cash outflow from financing activities for FY25 amounted to $7.9 million (FY24: $10.9 million), taking into account lower net repayment of bank borrowings. In FY25, the Group raised $6.8 million from the issuance of commercial papers under the SDAX CP Facility Programme (FY24: $5.9 million).

In 2HFY25, the Group recorded a net cash inflow of $1.6 million, compared to an outflow of $7.0 million in 2HFY24 and $9.6 million in 1HFY25, as the Group had utilized more trade facilities and raised higher funds from the issuance of commercial papers to support the business operations in 2HFY25.

Cash and Cash Equivalents

As at 31 March 2025, the Group’s cash and cash equivalents stood at $16.3 million, which were higher than $16.1 million as at 31 March 2024 and $10.9 million as at 30 September 2024.

Outlook

The Group is cautiously optimistic about the outlook of the operating environment in the year ahead, particularly in Singapore, where construction demand is expected to remain strong. This is supported by major public and private sector developments such as Changi Airport Terminal 5, expansion of the two Integrated Resorts, Cross Island MRT Line and Thomson-East Coast MRT Line Extension, new public housing, and foreign investments into pharmaceutical and semiconductor manufacturing facilities here. The Building and Construction Authority has forecast total construction demand in Singapore to reach between $47 billion and $53 billion in 2025, representing an increase of 6% to 20% from $44 billion in 2024.

This favourable market outlook is expected to benefit established foundation specialists like CSC, which possesses the capabilities and substantial resources necessary to support large- scale infrastructure and industrial projects. In addition, the Group’s trading division, which is the appointed distributor for a major Chinese heavy equipment manufacturer, Xuzhou Construction Machinery Group Co., Ltd. (“XCMG”), is also well positioned to capitalise on the sustained demand in Singapore and the region through sales and rental of foundation equipment such as boring rigs.

Nevertheless, the Group remains vigilant about rising competition, especially from foreign foundation contractors entering Singapore market, which could exert upward pressure on key project operating costs. These include expenses related to labour, materials such as concrete and cement, soil disposal, transport and equipment rentals, all of which are likely to be impacted by Singapore’s finite domestic resources. Labour market conditions are also expected to tighten further, with the next increase in foreign worker levy in September 2025. The Group is also closely monitoring any potential impact on raw material and energy costs arising from geopolitical uncertainties.

To mitigate these risks, the Group will focus on cost discipline and operational productivity to maintain its competitive edge.

The Group’s order book reached $300 million as of 30 April 2025 (30 April 2024: $250 million), representing a 20% year-on-year growth, with the majority of these projects to be delivered within the next 12 months.