mDR Limited: Net Profit Growth of 8.4% in FY2024

Business Description

mDR Limited is a Singaporean company that operates in the telecommunications industry. The company’s core business is the distribution and retail of mobile phones, accessories, and other related products. mDR Limited has a presence across Singapore and the region, with subsidiaries in various countries.

Financial Statement Analysis

Income Statement

The company reported a net profit of \$17.2 million for the financial year ended 31 December 2024, representing an 8.4% increase from the previous year. This growth can be attributed to the company’s ability to maintain its market share and control costs effectively.

Balance Sheet

mDR Limited has a strong balance sheet, with a healthy current ratio of 1.8 and a low debt-to-equity ratio of 0.3. This suggests the company has the financial flexibility to fund its operations and pursue growth opportunities.

Cash Flow Statement

The company generated \$20.8 million in cash from operating activities, which was used to fund capital expenditures and pay dividends to shareholders. The company’s cash position remains robust, with a cash balance of \$35.4 million as of 31 December 2024.

Dividends

The company has proposed a final dividend of \$0.02 per share, in addition to the interim dividend of \$0.01 per share paid earlier in the year. This represents a total dividend payout of \$0.03 per share for the financial year, which is in line with the company’s dividend policy.

Key Findings

mDR Limited’s financial performance in FY2024 was strong, with the company reporting an 8.4% increase in net profit. The company’s balance sheet remains healthy, and it has generated robust cash flows to fund its operations and reward shareholders. However, the report also highlights the ongoing legal proceedings related to the suspected misappropriation of assets by former employees, which could result in further adjustments to the financial statements.

Recommendation

Based on the financial analysis, investors currently holding mDR Limited stock should consider holding on to their investment, as the company has demonstrated its ability to grow profitably and maintain a strong financial position. For investors not currently holding the stock, the company’s solid financial performance and growth prospects may make it an attractive investment opportunity, but the ongoing legal proceedings should be closely monitored.

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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