SUTL Enterprise Limited (BHU) H2 2024 earnings summary

Executive summary

• Proposed renewal of the Share Purchase Mandate authorizing directors to repurchase up to 10% of issued shares, excluding treasury and subsidiary holdings, at a price not exceeding 5% above the average closing price over the last five market days.

• The mandate aims to enhance earnings per share, net asset value per share, and provide flexibility in capital management, dividend payout, and cash reserves.

• Purchases can be made via market or off-market transactions and will be funded from internal resources without incurring new borrowings.

Financial highlights

• As of 1 April 2025, the company had 88,668,902 issued shares (excluding treasury shares), with a potential buyback of up to 8,866,890 shares.

• Maximum funds required for a full buyback at S$0.739 per share would be approximately S$6.55 million.

• If shares are held as treasury, group net tangible assets (NTA) would decrease from S$70.0 million to S$63.5 million; if cancelled, issued capital and reserves would also decrease accordingly.

• Profit per share would increase from 9.61 cents to 10.68 cents (group basis) post-buyback.

• Current ratio would decrease from 3.57 to 3.25 (group basis) after buyback.

Outlook and guidance

• Directors will exercise the mandate prudently, ensuring no material adverse impact on working capital or gearing.

• Share purchases are prohibited during blackout periods around financial results announcements and after price-sensitive developments until public disclosure.