IPS Securex Holdings Limited: Profit Guidance for FY2025
IPS Securex Holdings Limited has released a profit guidance announcement for the financial year ended 30 June 2025 (FY2025). The company, which operates in the security solutions and maintenance business in Singapore and Southeast Asia, signals a challenging year ahead with an expected net loss after posting a profit in the prior year.
Key Financial Guidance
- Net Profit/Loss: The Group expects to report a net loss after tax for FY2025, reversing from a net profit after tax in FY2024.
- Revenue Drivers:
- Decrease in revenue from Security Solutions Business in Singapore, attributed to slower project delivery as requested by certain customers.
- Decline in revenue from the Maintenance and Leasing Business, due to reduced demand for maintenance support and the expiry of a major maintenance contract in the rest of Southeast Asia.
- Gross Margin: A further decline in gross margin is expected, driven by lower revenues and a higher cost base from a newly commenced integrated security solutions project.
Comparative Financial Table
As the company has only provided profit guidance and has not disclosed absolute figures for revenue, net profit, or EPS, a full quantitative comparison is not possible at this stage. However, the key directional change is summarized below:
| Metric |
FY2025 (Guidance) |
FY2024 (Actual) |
YoY Change |
| Revenue |
Lower (guidance) |
Higher |
Negative |
| Net Profit/(Loss) |
Net Loss (guidance) |
Net Profit |
Negative reversal |
| Gross Margin |
Lower (guidance) |
Higher |
Negative |
| Dividend |
No information disclosed |
No information disclosed |
N/A |
Chairman’s Statement
The Chairman, Ong Beng Chye, has provided a succinct and cautious statement. The tone is clearly negative, as the company warns investors of the anticipated net loss and attributes this to both demand-side and operational challenges. The statement underscores that the full financial details will be available by 28 August 2025, and advises shareholders to exercise caution.
Exceptional Items and Business Risks
- No asset revaluation, exceptional earnings/expenses, or major legal, policy, or macroeconomic events were disclosed in this announcement.
- No mention of directors’ remuneration, share buybacks, fundraising, or other corporate actions.
- The company highlights significant revenue recognition timing issues, especially with customer-requested project delays, and a cost-heavy project that has just commenced.
Forward-Looking Statements
The company is in the process of finalizing its unaudited financials and will provide a more detailed update by late August 2025. It is clear, however, that management expects challenging conditions to persist in the near term.
Conclusion
Based on the guidance, the financial outlook for IPS Securex Holdings Limited appears weak. The anticipated net loss, declining revenue, and lower gross margins signal operational and demand challenges in the company’s core markets. Investors should remain cautious and monitor the upcoming detailed financial results for FY2025 for further clarity on the company’s financial health and future prospects.
View IPS Securex Historical chart here
