Captii (AWV) H2 2023 earnings summary

Executive summary

• FY2023 was a difficult year: revenue fell 21.4% YoY to S$18.3m and net loss widened to S$11.7m, driven mainly by S$11.0m of non-cash fair-value and goodwill impairment losses. Excluding those items, net loss was S$0.7m.

• Lower revenue and gross margin at Unifiedcomms and GlobeOSS weakened underlying results; management aims to improve performance in 2024.

Financial highlights

• Revenue was S$18.281m vs S$23.249m in 2022; gross profit was S$8.515m vs S$11.302m.

• Loss before tax was S$11.288m vs S$2.527m; net loss was S$11.717m vs S$3.244m. Adjusted net loss excluding non-cash exceptional losses was S$0.7m vs adjusted net profit of S$1.6m.

• Reported EBITDA was negative S$10.539m; EBITDA before exceptional items was S$0.434m vs S$3.296m in 2022.

Outlook and guidance

• Management expects challenging system-sale conditions and uncertainty around timing of larger contracts; some uncommitted projects may be deferred or abandoned if market conditions worsen.

• In-hand Unifiedcomms and GlobeOSS contracts are progressing; management is pursuing new customer projects and strengthening recurring managed-service revenue and venture investment activity.

• The stated strategic plan targets sustained double-digit group profit growth and a significant improvement in ROE.