Global Resource Construction (S3N) H1 2025 earnings summary

Executive summary

• Unaudited H1 FY2025 profit rose 53.7% YoY to S$1.543m, with revenue up 6.5% to S$5.659m; statements were neither audited nor reviewed.

• Higher rental rates, lower administrative expenses and reduced finance costs supported results; cash fell to S$3.656m after loan repayments.

Financial highlights

• Revenue was S$5.659m, up 6.5% YoY; gross profit was S$4.531m, up 5.4%, with no significant change in gross margin as cost of sales increased correspondingly.

• Profit before tax increased 43.8% to S$1.851m; profit for the period rose 53.7% to S$1.543m.

• Other income rose 10.7% to S$433k; G&A expenses fell 4.3% to S$1.797m and finance costs declined 13.6% to S$1.316m.

• Operating cash flow was S$722k vs S$276k YoY; investing cash inflow was S$4.196m vs S$3.287m, while financing cash outflow was S$6.717m vs S$5.061m.

Outlook and guidance

• Proposed acquisition of Chip Eng Seng Construction Pte. Ltd. is in progress; it is expected to revitalize operations and strengthen the financial footing for future growth.

• No dividends were declared or recommended, with funds retained for working capital.