GRP Limited FY2025 Financial Results: Challenges Persist Amidst Project Delays and One-Off Events
GRP Limited has released its financial results for the quarter and year ended 30 June 2025. The report indicates a challenging period for the group, marked by significant project setbacks, one-off gains in the prior year, and rising costs. Below is an in-depth analysis of the key financial metrics, performance trends, and management commentary relevant to investors.
Key Financial Metrics and Performance Comparison
| Metric |
4Q FY2025 |
3Q FY2025 |
4Q FY2024 |
YoY Change |
QoQ Change |
| Revenue (S\$’000) |
1,914 |
(Not disclosed) |
2,131 |
-10.2% |
N/A |
| Gross Profit (S\$’000) |
1,399 |
(Not disclosed) |
(158) |
N/M |
N/A |
| Net Profit (Loss) Attributable to Owners (S\$’000) |
(565) |
(Not disclosed) |
1,180 |
N/M |
N/A |
| EPS (Basic, cents) |
(0.3135) |
(Not disclosed) |
0.6548 |
N/M |
N/A |
| Dividend (cents per share) |
0.00 |
0.00 |
0.00 |
No change |
No change |
| Metric |
FY2025 |
FY2024 |
YoY Change |
| Revenue (S\$’000) |
7,761 |
17,965 |
-56.8% |
| Gross Profit (S\$’000) |
(1,676) |
3,444 |
N/M |
| Net Profit (Loss) Attributable to Owners (S\$’000) |
(5,914) |
(10) |
N/M |
| EPS (Basic, cents) |
(3.2820) |
(0.0055) |
N/M |
| Dividend (cents per share) |
0.00 |
0.00 |
No change |
| Net Asset Value per share (cents) |
15.69 |
18.81 |
-16.6% |
Historical Performance Trends & Notable Financial Events
- Revenue Decline: The Group’s total revenue dropped sharply by 56.8% YoY. This was mainly attributed to a negative revenue adjustment in the Property segment due to project delays and cost overruns, despite modest growth in the Measuring Instruments segment.
- Significant Losses: The Group swung to a substantial net loss of S\$5.9 million in FY2025 compared to near breakeven in FY2024. Gross profit turned negative, driven by downward revisions in percentage of completion and heavy provisions for liquidated damages and onerous contract losses on the Perak, Malaysia housing project.
- Exceptional Items: FY2024 benefited from a one-off S\$4.75 million gain on derecognition of non-current advance payment recoverable from the PRC authority, which did not recur in FY2025.
- Administrative Expenses & Provisions: Administrative expenses and provisions spiked due to higher contract losses and expected future losses on the housing project.
- No Dividends: No dividends have been declared for FY2025, consistent with the previous year, as the company seeks to preserve cash amidst project uncertainties.
- Cash Position: Cash and bank balances increased slightly to S\$19.5 million, but part of this is restricted or frozen due to disputes in Malaysia and ongoing recovery in China.
Divestments, Legal Disputes, and Other Corporate Actions
- Project Contractor Change and Arbitration: The Group terminated the main contractor for the Perak housing project and appointed a new one. There is an ongoing arbitration process, and project completion is delayed to March 2026 for Phases 1 and 2, and December 2026 for Phase 3.
- Asset Recovery Efforts: Recovery of advance payments from the PRC authority is progressing, with five instalments received but a significant balance (RMB14.05 million, approx. S\$2.5 million) still outstanding, expected to be recovered by year-end 2025.
- Discontinued Operations: Hose & Marine business has been discontinued and related assets disposed.
- No Share Buybacks or Dilution: The number of issued shares remained unchanged, and no buybacks, placements, or mandates were reported.
- New Business Exploration: The Group signed a non-binding heads of agreement to explore a Battery Energy Storage System (BESS) project in China, but this is still at the evaluation stage.
Macroeconomic, Legal, and Operational Risks
- Delays and cost overruns in the Perak project have severely impacted financial performance and created ongoing legal and operational uncertainty.
- Funds are tied up due to legal freezes in Malaysia and China, affecting liquidity and operational flexibility.
- The market environment remains challenging, with no material improvement in sight for the property development segment.
Chairman’s/Management’s Statement and Tone
The management commentary is cautious and acknowledges the tough operating environment:
“The market condition remains challenging… The Group will focus on carrying on and complete Phase 1 and 2 of the project by March 2026 and Phase 3 by December 2026. At the same time the Group is in consultation with its legal advisers on the appropriate actions to be taken subsequently… The Company will be preserving its cash and bank balances.”
Conclusion and Investment Recommendations
Overall Assessment: GRP Limited’s FY2025 results reflect a weak financial performance driven by project-specific setbacks, exceptional negative adjustments, and no recurring large one-off gains. The outlook remains uncertain, particularly as the company deals with litigation, delayed project completion, and ongoing asset recovery. The management’s tone is defensive, prioritizing cash preservation over growth or returns to shareholders.
Recommendations
-
If you are currently holding this stock:
Consider reducing your exposure or holding only if you have a high risk tolerance and a long-term outlook. The near-term prospects remain clouded by project risks, legal disputes, and lack of earnings visibility. Monitor closely for updates on project completion, arbitration outcomes, and asset recoveries.
-
If you are not currently holding this stock:
It may be prudent to stay on the sidelines for now. Wait for concrete signs of operational turnaround, project risk resolution, or consistent profitability before considering an entry.
Disclaimer: This analysis is based solely on information provided in the company’s official financial report and does not constitute investment advice. Investors should conduct their own due diligence and consider their own financial circumstances and risk tolerance before making any investment decision.
View GRP^ Historical chart here
