Natural Cool Holdings Limited: 1H 2025 Financial Results Analysis
Natural Cool Holdings Limited, listed on the Catalist Board of the Singapore Exchange, has released its unaudited condensed interim financial results for the six months ended 30 June 2025. The Group operates across Aircon and Engineering, Paint and Coatings, Food & Beverages (F&B), and Technology segments, with its principal activities in Singapore.
Key Financial Metrics
| Metric |
1H 2025 (Current Period) |
2H 2024 (Previous Half) |
1H 2024 (Same Period Last Year) |
YoY Change |
HoH Change |
| Revenue |
\$67.25m |
– |
\$67.83m |
-0.9% |
– |
| Gross Profit |
\$14.17m |
– |
\$13.91m |
+1.9% |
– |
| Net Profit |
\$0.97m |
– |
\$0.14m |
+613.2% |
– |
| EPS (Singapore cents) |
0.38 |
– |
0.20 |
+90.0% |
– |
| Dividend per Share |
0 |
– |
0 |
– |
– |
| Net Asset Value per Share (Singapore cents) |
6.38 |
6.95 (FY2024) |
– |
–8.2% |
-8.2% |
Performance Review
- Revenue: Group revenue declined marginally by 0.9% YoY to S\$67.25 million, primarily due to reduced sales in Paint and Coatings (down S\$0.2m) and F&B (down S\$0.5m), partially offset by a slight improvement in the Technology division (+S\$0.16m). Aircon and Engineering revenue remained stable.
- Gross Profit: Despite lower revenue, gross profit increased by 1.9% YoY to S\$14.17 million, with margin improving from 20.5% to 21.1%, driven by higher margin projects in Aircon and Engineering.
- Net Profit: Profit for the period surged to S\$0.97 million, up significantly from S\$0.14 million in 1H 2024, mainly due to better gross margins, lower administrative and distribution expenses, and reduced finance costs.
- EPS: Earnings per share rose to 0.38 Singapore cents, almost doubling YoY.
- Dividend: No interim dividend was declared for the period, similar to the previous year. Profits were retained for business use.
- Net Asset Value: NAV per share declined from 6.95 to 6.38 Singapore cents, primarily due to acquisition of non-controlling interests and dividend payments to NCI.
Segment Performance
- Aircon and Engineering: Revenue stable (~\$58.8m). Higher margin project works led to overall margin improvement.
- Paint and Coatings: Revenue fell 7.2% YoY due to lower retail sales.
- F&B: Revenue dropped 14.0% YoY, mainly from closure of non-performing food stalls in late 2024.
- Technology: Revenue increased 7.3% YoY on higher installation and maintenance works.
Cash Flow and Balance Sheet Highlights
- Operating Cash Flow: Net inflow of S\$3.8m due to improved collections and working capital management.
- Investing Activities: Net cash inflow of S\$1.0m, mainly from asset sale proceeds (S\$1.1m).
- Financing Activities: Net outflow of S\$5.8m, including debt repayments, acquisition of additional equity in iFocus Pte Ltd (S\$1.74m), and dividend to NCI.
- Cash Position: Cash and cash equivalents ended at S\$8.45m, down S\$1.1m from end-2024.
- Loans and Borrowings: Fell to S\$33.5m (from S\$35.7m at end-2024) due to repayments.
- Net Current Liabilities: S\$1.43m, mainly from a deferred consideration related to acquisition of iFocus Pte Ltd; management expects to fund this via bank borrowings over 5 years.
Exceptional Items and Corporate Actions
- Acquisition of iFocus Pte Ltd: In January 2025, the Group agreed to acquire the remaining 49% equity interest in iFocus Pte Ltd for S\$2.94m, with the first 29% completed in March 2025 and the remaining 20% scheduled for completion by August 2025.
- Asset Sale: Factory assets held for sale were disposed, resulting in a S\$231k gain.
- No Share Capital Changes: There were no changes in share capital, share buybacks, or outstanding convertible securities during the period.
- No Dividend to Shareholders: No interim or final dividend was declared for the period.
- Ongoing Liquidation: Creditors’ voluntary liquidation of Natural Cool Investments Pte Ltd remains ongoing.
Directors’ Remuneration
Key management personnel compensation for 1H 2025 amounted to S\$1.45 million (1H 2024: S\$1.33 million), with directors of the Company receiving S\$0.64 million (1H 2024: S\$0.57 million).
Macroeconomic and Industry Commentary
The Board highlighted ongoing global trade tensions and economic uncertainty, with Singapore expected to be affected as an open economy. The Aircon and Engineering division performed well, but management is cautious due to a weaker trend in new property completions and project award delays. Paint and Coatings faces pricing pressures in a competitive environment. The F&B division seeks to expand supermarket and wholesale channels, having recorded good festive sales, while the Technology division is focusing on new market verticals and product innovation.
Conclusion: Performance and Outlook
Natural Cool Holdings delivered a solid recovery in profitability for the first half of 2025, with net profit and margins improving despite marginally lower revenue. The Group maintained tight cost discipline and continued deleveraging, while investing in strategic acquisitions (notably iFocus Pte Ltd). The outlook is cautious, reflecting macroeconomic headwinds, sector-specific challenges, and project delays. However, the Group’s operating cash flow remains positive and management expects sufficient banking facilities to cover short-term obligations.
Overall, the financial performance for 1H 2025 is neutral to mildly positive. While bottom-line results improved and balance sheet risk was reduced, revenue headwinds and ongoing economic uncertainty temper the outlook. Investors should monitor project pipeline developments and the successful integration of recent acquisitions for future performance upside.
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