Annica Holdings Limited: Financial Report Analysis (Net Profit of \$74,000 for FY2024)

Business Description

Annica Holdings Limited is a Singapore-incorporated company with a diverse range of business segments, including oil and gas equipment and engineering services, and renewable energy. The company operates globally, with a presence in various countries.

Industry Position and Competitors

The company’s position within the industry is not explicitly stated in the report. However, it is mentioned that the company has streamlined its oil and gas equipment and engineering services segments, redirecting their focus to serve broader markets along the value chain while enhancing cost-efficiency and brand visibility.

Revenue Streams and Customer Base

The company’s revenue streams are not explicitly stated in the report. However, it is mentioned that the renewable segment is expected to contribute positively to the Group’s cash flows, driven by anticipated growth in this segment over the next 16 months.

Financial Statement Analysis

Income Statement

The company reported a net profit of \$74,000 for the financial year ended 31 December 2024, compared to a net loss of \$928,000 for the financial year ended 31 December 2023.

Balance Sheet

The Group’s current liabilities exceeded their current assets by \$2,212,000 as at 31 December 2024. The Company has a net capital deficiency of \$508,000 as at 31 December 2024.

Cash Flow Statement

The Group incurred net operating cash outflows of \$310,000 for the financial year ended 31 December 2024, compared to net operating cash inflows of \$1,409,000 for the financial year ended 31 December 2023.

Key Facts and Investor Action

The report highlights the following key facts:
The company’s ability to continue as a going concern is uncertain due to its financial position.
The Group has prepared a 16-month consolidated cash flow forecast, which indicates that it will be able to generate sufficient cash flows to meet its financial obligations.
The company has secured an additional loan facility of $2,000,000 to support its working capital requirements.
The company has received comfort letters from potential investors expressing their commitment to a capital injection of approximately $2,000,000.

Dividend and Earnings

No dividend is proposed in the report.

Strengths and Risks

The company’s strengths include:
Expected growth in the renewable segment
Streamlined oil and gas equipment and engineering services segments
Additional loan facility to support working capital requirements
The company’s risks include:
Uncertainty about its ability to continue as a going concern
Net capital deficiency
Negative cash flow

Special Activities or Actions

The company is taking the following special activities or actions to improve its profitability:
Exploring various corporate strategies, including fund raising for the renewable segment, strategic acquisitions, and restructuring the Group’s existing businesses or assets.
Integration of P.J. Services Pte Ltd and Industrial Engineering Systems Pte Ltd operations to enhance cost-efficiency and brand visibility.

Report Date and Financial Year

The report is dated 11 April 2025 and is reporting for the financial year ended 31 December 2024.

Recommendations

For current investors: Hold with caution. The company’s financial position is uncertain, and its ability to continue as a going concern is questionable. However, the company has taken steps to improve its profitability, and the renewable segment is expected to contribute positively to its cash flows.
For potential investors: Exercise caution. The company’s financial position is uncertain, and its ability to continue as a going concern is questionable. However, the company has taken steps to improve its profitability, and the renewable segment is expected to contribute positively to its cash flows.
Disclaimer: The recommendations are based solely on the information provided in the report and should not be considered as investment advice. Investors should conduct their own research and consult with financial advisors before making any investment decisions.

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