Enviro-Hub (L23) H2 2024 earnings summary

Executive summary

• FY2024 continuing-operations revenue fell 25.6% YoY to $30.0m; a $24.0m continuing-operations loss was driven primarily by healthcare goodwill and PPE impairments.

• Recycling remained the largest business at 86.3% of revenue; management is prioritizing liquidity, cost control and restructuring underperforming healthcare operations.

Financial highlights

• Continuing revenue was $29.957m vs $40.291m; gross profit was $7.287m vs $7.534m, while operating activities recorded a $21.357m loss vs $7.916m profit.

• Continuing-operations loss before tax was $24.268m vs $4.790m profit; loss after tax was $24.036m vs $4.053m profit. Total loss for the year was $24.027m vs $3.902m profit.

• Basic and diluted EPS from continuing operations was -1.68 cents vs 0.08 cents; total EPS was -1.68 cents vs 0.07 cents.

• Other income included a $6.066m PGSB profit-guarantee compensation receivable and a $3.286m investment-property fair-value gain; inventory write-down reversal was $1.460m.

• Operating cash flow was $1.868m vs $8.890m; year-end cash and cash equivalents were $12.419m vs $15.689m.

Outlook and guidance

• Recycling has long-term growth potential from sustainability priorities and tighter environmental rules, but near-term material shortages, supply-chain disruption and higher operating costs may pressure profit.

• Singapore industrial and warehouse rents are forecast to rise 1%–3% in 2025 as increased supply moderates rental growth.

• Glove-sector oversupply is easing, with demand and supply expected to stabilize by 2026; higher U.S. tariffs on Chinese gloves may improve Malaysian manufacturers’ price competitiveness.

• Priorities include optimizing liquidity, managing expenses and interest costs, evaluating loan repricing or refinancing, and restructuring underperforming businesses.