Shanaya Limited 1H FY2025 Results: Financial Analysis and Investor Insights

Shanaya Limited, a Singapore-listed provider of waste management services, has released its unaudited condensed interim financial statements for the half year ended 30 June 2025. This article presents a comprehensive analysis of the company’s key financial metrics, trends, and outlook, with actionable recommendations for investors.

Key Financial Metrics

*QoQ figures are inferred as half-yearly data was provided; 2H FY2024 is computed as difference between FY2024 full-year and 1H FY2024 where possible.
No dividends were declared for any period.

Financial Performance Summary

• Revenue: Marginal increase of 1% YoY to \$3.99 million, driven by higher contributions from general and oil waste collection, offset by lower construction waste revenue.
• Net Loss: Loss narrowed by 29% YoY to \$0.45 million, reflecting cost controls and lower depreciation/amortisation.
• Other Income: Decreased sharply due to the absence of a one-off government grant and lower asset disposal gains compared to prior year.
• Operating Expenses: Most major expense categories declined, including employee benefits (+3% due to pay increments), other operating expenses (-8%), finance costs (-18%), and depreciation/amortisation (-9% and -18% respectively).
• Earnings per Share (EPS): Basic and diluted loss per share improved significantly, reflecting both a smaller loss and a larger share base.

Balance Sheet and Cash Flow

• Assets: Total assets increased to \$20.2 million (from \$19.7 million at end-2024), with higher prepayments offsetting reductions in cash and non-current assets.
• Liabilities: Current liabilities rose due to reclassification of bank borrowings in anticipation of a property sale. Non-current liabilities fell after this reclassification and loan settlements.
• Cash Flow: Net cash from operations was \$0.31 million, down from \$0.82 million a year ago, reflecting higher prepayments. Investing outflows increased to \$0.72 million, mainly for equipment and a project feasibility study. Financing contributed a small net inflow of \$0.13 million from deposits for an upcoming share subscription, offset by debt repayments.
• Cash & Cash Equivalents: Ended the half at \$1.18 million, down from \$1.45 million at end-2024.

Exceptional Items and Corporate Actions

• Asset Sale: The company is in the process of selling its leasehold property at 27 Kian Teck Drive for \$4.1 million. The sale is expected to complete within 12 months and assets/liabilities have been reclassified as “held for sale.”
• Fundraising: Shanaya is raising capital via the proposed issue of 96 million new shares at S\$0.055/share, with a deposit already received. Completion was delayed to August 2025 due to external events.
• Project Investment: Significant prepayment (\$0.83 million) was made for a road upgrade project feasibility study in Indonesia, funded from rights issue proceeds and the pending share subscription.
• No dividends: No interim or final dividends declared for 1H FY2025 or the prior period.
• No related party transactions: No material related party transactions were reported for the period.
• No share buybacks: There were no share buybacks or option exercises.

Strategic Developments and Outlook

• Business Initiatives: The group is emphasizing operational efficiency, sustainability, and strategic partnerships—especially in food, biomedical, and toxic industrial waste management. New treatment plants are expected to come online between 4Q2025 and 1Q2026.
• Growth Pipeline: Management is focused on securing larger-scale projects and innovative green initiatives, including a collaboration with Zym-Tec for eco-friendly construction materials.
• Financial Position: The board highlighted continued cost-saving efforts and business optimization to stabilize operations and improve financial health.
• Risks and Uncertainties: The report notes ongoing macroeconomic and geopolitical uncertainties but expresses cautious optimism given the company’s resilience.

Chairman’s Statement

“The Board and Management continue to take active steps to stabilise the Group’s operations and financial position. Key initiatives have included implementing cost-saving measures, optimisation of the Group’s core business segments and exploring strategic growth opportunities, with a strong focus on innovation, sustainability, operational excellence, collaborations and joint ventures to secure larger scale projects.

The Group focuses on achieving sustainable growth through operational efficiency, service quality and agile decision-making to maintain business continuity and drive recovery. By embedding sustainability into the Group business model, this holistic approach enables Shanaya to create long-term value for its investors, customers and contribute meaningfully to the communities where it operates.”

The tone is cautiously optimistic, emphasizing resilience, sustainability, and a focus on long-term value amid industry and macroeconomic challenges.

Conclusion and Investor Recommendations

Overall Assessment: Shanaya Limited’s 1H FY2025 results show modest revenue growth and a marked reduction in net loss, supported by cost controls and lower financing costs. The company is not yet profitable and continues to face challenges, but is actively restructuring its business, raising fresh capital, and investing in new growth areas. Cash flow remains tight, with no dividend payout expected in the near term. The outlook is neutral-to-cautiously optimistic, contingent on successful execution of new projects, completion of asset sales, and stabilization of core operations.

• If you are currently holding Shanaya shares:
  • Hold the stock if you have a high risk tolerance and can wait for the outcome of the asset sale and new business initiatives. Monitor cash flows, progress on the new projects, and further capital raising activities. If the company delivers on its stated strategy and achieves profitability, upside may materialize. However, be mindful of continued losses and the absence of dividends.
  • Consider reducing exposure if you require immediate income or are risk-averse, as profitability is not expected in the short term and the company’s financial position remains fragile.
• If you do not currently hold Shanaya shares:
  • Wait for clearer signs of operational turnaround, completion of the property sale, and successful ramp-up of new business lines before considering entry. Current valuations may not fully reflect execution risks and the company’s fragile financials.
  • Shanaya may present an opportunistic buy only for speculative investors seeking exposure to the environmental/waste management sector and willing to accept volatility and potential dilution from ongoing fundraisings.

Disclaimer: This analysis is based solely on information disclosed in Shanaya Limited’s unaudited interim financial report for 1H FY2025. It does not constitute financial advice. Investors should conduct their own due diligence and consider their risk tolerance before making investment decisions.

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