Intraco (I06) H1 2024 earnings summary

Executive summary

• H1 revenue rose 19.5% YoY to S$94.0m, led by Trading and Distribution; gross profit fell 11.9% to S$3.8m as margins weakened.

• Profit for the period was S$259k vs S$391k; operating activities used S$17.9m, mainly from higher receivables.

Financial highlights

• Revenue increased S$15.3m YoY; Trading and Distribution revenue rose S$15.8m, while Fire Protection revenue declined S$1.0m.

• Gross profit decreased S$0.5m YoY; lower margins in Trading and Distribution and passive fire protection were the main factors.

• Operating activities recorded a S$210k loss vs a S$37k loss; profit before tax was S$252k vs S$384k.

• Administrative expenses declined 5.2% to S$4.3m; finance costs increased to S$470k from S$378k, mainly due to working-capital borrowings.

Outlook and guidance

• Trading and Distribution plans to expand its product range, customer base in principal markets and sales into new markets, while optimizing operations.

• Focus areas include plastics resin trading, trade finance and supply-chain solutions, digital-asset and tokenization advisory, and regulated money-transfer and money-changing services.

• Subject to MAS approval, plans call for increasing the SlideSG stake from 19.9% to as much as 50%.

• Fire Protection divestment and proposed capital reduction were targeted for completion by Q1 2025, subject to independent shareholder approval.