Darco Water Technologies (BLR) H2 2024 earnings summary

Executive summary

• FY2024 returned to profitability, with net profit of $0.5m versus a $6.0m loss in FY2023; revenue declined 15.8%, while gross margin improved to 20.1%.

• Higher O&M Services revenue and tighter procurement, risk controls and project-cost management supported a shift toward more recurring, higher-margin work.

Financial highlights

• Revenue was $59.136m versus $70.247m; gross profit rose 24.4% to $11.907m from $9.575m.

• Profit before tax was $0.736m versus a $6.042m loss; net profit was $0.534m versus a $5.990m loss.

• Administrative expenses fell to $9.860m from $10.711m and distribution expenses to $0.506m from $0.894m; finance costs increased to $1.209m from $0.984m.

• Operating cash outflow was $3.099m; cash and cash equivalents at year-end were $6.931m versus $10.901m a year earlier.

Outlook and guidance

• A July 2024 Singapore HDB award for a $5.8m District PWCS Design, Build and Operate project is expected to be followed by a 10-year O&M agreement upon completion.

• Plans include bidding for projects, pursuing direct negotiations and strategic collaborations across China, Malaysia, Singapore and Vietnam, while prioritising efficient execution and cost discipline.

• New Singapore public housing districts and structural demand drivers including urbanisation, industrialisation and environmental awareness support the long-term water and waste solutions outlook.