Southern Archipelago Ltd. Issues Profit Warning for 1H2025

Southern Archipelago Ltd. has released a profit warning for the six months ended 30 June 2025 (1H2025), alerting investors that the group is expected to report a net loss for the period. This announcement precedes the upcoming release of its unaudited consolidated financial results, scheduled on or before 14 August 2025.

Key Financial Update

The anticipated net loss for 1H2025 is primarily attributed to a one-off, non-accounting adjustment of approximately S\$0.83 million. This adjustment is related to the voluntary liquidation of Trackplus Sdn. Bhd., a dormant wholly-owned subsidiary. The company emphasizes that this loss is not reflective of its operational performance or cash flow. Excluding this adjustment, Southern Archipelago Ltd. would have recorded a net profit for the period.

Exceptional Expenses

• One-off Non-Accounting Adjustment: S\$0.83 million loss due to liquidation of Trackplus Sdn. Bhd.
• This loss is classified as exceptional and does not arise from ongoing business operations.

Historical Performance and Trends

The report indicates that, operationally, the company would have achieved profitability in 1H2025 if not for the exceptional expense. There is no comparative financial data provided for the previous periods in this announcement, so deeper trend analysis is not possible.

Corporate Actions and Events

• Divestment: Voluntary liquidation of a dormant subsidiary, Trackplus Sdn. Bhd.

Chairman’s Statement and Tone

The statement from Non-Executive Chairman Siaw Lu Howe adopts a cautious but informative tone. While the company communicates transparency regarding the expected loss, it reassures stakeholders that the operational business remains sound, as the loss is purely an accounting adjustment unrelated to current performance or cash flow.

Guidance and Outlook

• The company will provide full details of its financial performance with the release of unaudited results for 1H2025 on or before 14 August 2025.
• Shareholders are advised to exercise caution when trading in the company’s shares and to consult professional advisers if uncertain.

Conclusion

Based strictly on the contents of the report, Southern Archipelago Ltd. appears to have a neutral to mildly positive operational outlook for 1H2025. The reported net loss is solely due to an exceptional, non-recurring adjustment related to the liquidation of a dormant subsidiary and does not reflect the underlying business performance or cash flow. Excluding this one-off event, the group would have been profitable. Investors should remain attentive to the upcoming detailed financial results for a fuller picture of the company’s operational health.

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