Procurri Corporation Limited: 1H2025 Financial Review and Outlook
Procurri Corporation Limited (SGX: BVQ), a global provider of sustainable IT solutions, has released its financial results for the half year ended 30 June 2025. The report highlights resilience in its core Hardware segment amidst broader market softness, with an overall dip in profitability. Below, we provide a structured analysis of Procurri’s key financial metrics, segmental performance, and business outlook for investors.
Key Financial Metrics
| Metric |
1H2025 |
2H2024 |
1H2024 |
YoY Change |
HoH Change |
| Revenue (S\$ million) |
93.6 |
95.2 |
96.1 |
-2.6% |
-1.7% |
| Gross Profit (S\$ million) |
18.7 |
20.7 |
22.4 |
-16.8% |
-9.8% |
| Gross Profit Margin (%) |
19.9% |
21.7% |
23.3% |
-3.4 ppt |
-1.8 ppt |
| Net (Loss)/Profit (S\$ million) |
(5.3) |
(0.7) |
1.1 |
N.M. |
N.M. |
| Operating Cash Flow (S\$ million) |
4.9 |
– |
– |
– |
– |
| Dividend |
Not disclosed |
Not disclosed |
Not disclosed |
– |
– |
Segmental Performance
| Segment |
Revenue (S\$’000) |
YoY Change |
Gross Profit (S\$’000) |
YoY Change |
Gross Margin (%) |
YoY Change |
| Hardware |
66,477 |
+1.0% |
13,031 |
-4.0% |
19.6% |
-1.0 ppt |
| Lifecycle Services |
12,703 |
-3.8% |
2,435 |
-42.9% |
19.2% |
-13.1 ppt |
| Third Party Maintenance |
14,425 |
-15.5% |
3,201 |
-30.1% |
22.2% |
-4.6 ppt |
Historical Performance Trends
- Stability in Hardware: Revenue from the Hardware segment grew 1% YoY, demonstrating resilience despite broader market softness.
- Pressure on Services: Both Lifecycle Services and Third Party Maintenance saw significant revenue and margin contraction, primarily due to shifting IT priorities, project delays, and a high fixed cost structure.
- Profitability: Gross profit margin compressed by 3.4 percentage points YoY to 19.9%, reflecting a less favorable revenue mix and market-driven price pressures.
- Net Loss: The group swung to a net loss of S\$5.3 million, compared to a profit of S\$1.1 million a year earlier.
- Cash Discipline: Net operating cash flow remained positive at S\$4.9 million, indicating solid cash management even in a challenging environment.
Business Developments and Outlook
- Service Expansion: Procurri is expanding into Modern Workplace services (hardware staging and global deployment of end-user computing) and Professional Services (global field engineering resources).
- Sustainability Focus: The company is investing in end-of-life solutions to extract value from green boards and precious metals, supporting its IT Asset Disposition (ITAD) and sustainability ambitions.
- Strategic Partnerships: Closer collaboration with OEMs and a focus on vendor-agnostic solutions are seen as key to navigating the decline in traditional hardware demand as cloud adoption accelerates.
- Margin Recovery Initiatives: Cost optimization, high-margin service model prioritization, and customer upscaling are ongoing priorities.
- Industry Trends: Growing interest in refurbished IT solutions and the emergence of GPU technology in the secondary market are expected to support hardware resale volumes.
Chairman’s/CEO’s Statement
Mathew Jordan, Executive Director and CEO, acknowledged the headwinds of 1H2025, citing market softening and margin pressure. He emphasized the company’s decisive actions to strengthen its cash position and reduce costs. The tone of the statement is cautiously optimistic, highlighting resilience in hardware operations and targeted expansion into sustainable and modern workplace services as reasons for confidence in adapting to ongoing industry shifts.
Conclusion
Procurri’s 1H2025 results indicate a weak financial performance, characterized by revenue and profit declines and margin compression, although the Hardware segment remains stable. The company’s positive cash flow and strategic pivot towards services, sustainability, and high-margin offerings are encouraging, but significant challenges remain amid declining service revenues and persistent market softness. The outlook hinges on the successful execution of diversification efforts and ongoing cost management to restore profitability and shareholder value.
View Procurri Historical chart here
