Captii (AWV) H1 2023 earnings summary

Executive summary

• H1 2023 revenue fell 4.8% YoY to S$10.188m; net profit declined to S$0.299m from S$1.093m, reflecting lower gross profit and higher net expenses.

• H1 total comprehensive loss was S$1.099m, including S$1.398m of currency translation differences; Q2 net profit was S$0.206m.

Financial highlights

• H1 gross profit fell 14.3% YoY to S$4.419m; gross margin declined to 43.4% from 48.2%.

• H1 profit before tax was S$0.396m versus S$1.322m; attributable profit was S$0.185m versus S$1.004m.

• H1 EBITDA decreased to S$0.842m from S$1.864m; Q2 EBITDA was S$0.496m versus S$0.940m.

• H1 EPS was 0.58 cents versus 3.14 cents; Q2 EPS was 0.54 cents versus 1.72 cents.

Outlook and guidance

• Unifiedcomms and GlobeOSS contracts in hand continued to progress; management was optimistic that customers would pursue new projects and initiatives.

• Larger system-sale contracts not yet committed could be deferred or abandoned if macroeconomic and industry conditions worsen or fail to improve sufficiently.

• Start-up business development and funding conditions remained challenging in certain industries; management planned to work with customers and investees to limit economic uncertainty’s impact.