Financial Analysis Report for Reclaims Global Limited FY2025 (31 January 2025)
Business Description: Reclaims Global Limited is an eco-friendly integrated service provider in the Singapore construction industry. The company specializes in the recycling of construction and demolition waste, customization of excavation solutions, and fleet management services. The company operates in three main business segments: (1) Recycling, (2) Excavation Services, and (3) Logistics and Leasing. 3
The company has built an established reputation and proven track record in the industry since 2009. 1
Financial Performance: Revenue and Profitability:
Revenue increased by 82.7% from S$24.3 million in FY2024 to S$44.4 million in FY2025. 2
Profit before tax increased significantly by 329.7% from S$1.5 million in FY2024 to S$6.5 million in FY2025. 3
The company’s net profit grew by 267.2% from S$1.5 million in FY2024 to S$5.6 million in FY2025. 3
Dividends:
The company has proposed a final dividend of 0.2 Singapore cents per share for FY2025, amounting to a total dividend of S$1,572,000. 8
Strengths:
Strong revenue growth across all business segments, indicating robust demand for the company’s services.
Significant improvement in profitability, with profit before tax and net profit increasing by over 300% and 260% respectively.
Healthy cash flow generation, with net cash flows from operating activities of S$7.5 million in FY2025. 17
Debt-free balance sheet, with no outstanding bank loans as of 31 January 2025. 13
Risks:
Reliance on the construction industry, which can be susceptible to economic fluctuations and project delays.
Potential inflationary pressures impacting the company’s cost structure and profit margins.
Concentration risk, with a significant portion of revenue derived from the Excavation Services segment.
Recommendation: For current shareholders: Given the company’s strong financial performance, robust cash flows, and proposed dividend, we recommend holding onto the stock. The company’s growth prospects and financial position suggest potential for further upside.
For new investors: We recommend considering an investment in Reclaims Global Limited. The company’s impressive financial results, debt-free balance sheet, and industry leadership position make it an attractive investment opportunity. However, investors should be mindful of the risks associated with the construction industry and monitor the company’s performance closely.
Disclaimer: This report is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making any investment decisions.
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