Financial Analysis Report: VCPlus Limited (Net Profit Decline)
Date: 15 April 2025 Financial Year: 2024
Business Description
VCPlus Limited is a company incorporated in Singapore, operating in the Fintech business and related sectors. The company’s core business operations and business segments are not explicitly stated in the report, but it mentions that the Group will focus on forming strategic partnerships within the Fintech Business and related sectors in 2025.
Industry Position and Competitors
The report does not provide information on the company’s position within the industry, its competitors, and its market share.
Revenue Streams and Customer Base
The report does not provide detailed information on the company’s revenue streams, customer base, supply chain, and competitive advantage.
Financial Statement Analysis
Income Statement
The Group incurred a net loss of S$2,281,000 for the financial year ended 31 December 2024.
This represents a net profit decline compared to the previous year’s loss of S$2,186,000.
Balance Sheet
The Group and the Company have net current liabilities of S$857,000 and S$1,043,000, respectively.
The Company’s total assets are not explicitly stated, but it mentions that the carrying amount of investment in subsidiaries amounted to S$2.35 million.
Cash Flow Statement
The Group recorded net cash used in operating activities of S$960,000.
Key Facts for Investor Action
The company’s auditor, Nexia Singapore PAC, has included a Material Uncertainty Related to Going Concern section in their report, indicating that the Group’s ability to continue as a going concern is dependent on additional funding from investors and financial support from a director.
The company has prepared a cash flow forecast for the next 12 months and has obtained a letter of financial support from a director.
The company has entered into a new subscription agreement with an investor to allot and issue 900,000,000 subscription shares at an issue price of S$0.0034 per share, amounting to a total aggregate consideration of S$3,060,000.
Dividend and Earnings
No dividend is proposed.
Strengths and Risks
Strengths:
The company has obtained a letter of financial support from a director.
The company has entered into a new subscription agreement with an investor.
Risks:
The Group’s ability to continue as a going concern is uncertain.
The company has incurred a net loss and recorded net cash used in operating activities.
Special Activity or Action
The company is taking steps to improve its profitability by focusing on forming strategic partnerships within the Fintech Business and related sectors in 2025.
Recommendation
For current investors: Hold, but be cautious of the uncertainty surrounding the company’s ability to continue as a going concern.
For potential investors: Avoid investing in the company until the uncertainty surrounding its going concern is resolved.
Disclaimer: This recommendation is 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 a financial advisor before making any investment decisions.
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