DISA Limited FY2025 Financial Results: Revenue Decrease, Losses Widen, No Dividend Declared

DISA Limited FY2025 Financial Results Analysis

DISA Limited, listed on the Catalist board of SGX, has released its condensed interim financial statements for the six months and full year ended 30 June 2025. The report provides key insights into the company’s financial performance, operational trends, and strategic developments for investors.

Key Financial Metrics and Performance Summary

Metric	2H FY2025	1H FY2025	2H FY2024	YoY Change	QoQ Change
Revenue	\$1.96M	\$4.14M	\$3.94M	-50.4%	-52.7%
Net Loss Attributable to Shareholders	\$(1.42)M	\$(1.12)M	\$(1.24)M	+14.7%	+26.8%
EPS (Basic/Diluted, cents)	(0.01)	(0.01)	(0.01)	No Change	No Change
Dividend Proposed	None	None	None	No Change	No Change
Net Asset Value/Share (cents)	0.0171	0.0171	0.0128	+33.6%	No Change

Summary: The company’s revenue and net profit declined sharply year-over-year and quarter-over-quarter, primarily due to external macroeconomic pressures. No dividend has been proposed, consistent with the previous year.

Historical Performance Trends

The Group’s revenue for FY2025 fell to \$6.10M, a 19.2% decrease from FY2024. The second half of FY2025 saw a more severe drop (down 50.4% YoY) marking a significant loss in momentum. The net loss for the year widened to \$(2.87)M from \$(2.08)M the prior year. Despite the weak profit trend, net asset value per share improved, benefiting from capital raised in the Rights Cum Warrants Issue.

Exceptional Earnings and Expenses

FY2024 saw one-off gains such as recovery of previously written-off deposit (\$388k), bad debts recovered (\$171k), and reversal of long outstanding payable (\$32k). These were absent in FY2025.
FY2025 included a \$15k gain from early lease termination, offsetting some expense increases.
Share-based payment expenses increased substantially in FY2025 (\$154k vs \$46k in FY2024), mainly due to new options granted and exercised.

Fundraising, Dilution, and Corporate Actions

Significant fundraising was completed via a Rights Cum Warrants Issue in June 2025, raising gross proceeds of approximately \$3.15M. The net proceeds were allocated to working capital, business growth, acquisition, and issue expenses.
Share capital increased to 13.84 billion shares (from 10.51 billion), representing notable dilution. Warrants outstanding may further dilute shareholdings if exercised.
Acquisition of a 50% stake in Rheumatology Associates Pte. Ltd. for \$5.5M was completed post-balance sheet date, expanding the Group’s footprint in healthcare.

Directors’ and Key Management Pay

Key management compensation totaled \$2.03M for FY2025 (up from \$1.54M). This included salaries, bonuses, CPF contributions, directors’ fees (\$101k), and share-based payments (\$162k).

Related-Party Transactions

Royalties of \$42k were paid to a director for patent use.
Aggregate interested person transactions were below \$100k.

Chairman’s Statement

The Chairman, Mr. Chng Weng Wah, provided the following statement:

“The Group’s strategic focus remains on deepening its commercial engagement with a major retailer in the United States… DiSa’s serialization solution, deployed at the retailer’s stores since 2017, has already demonstrated its effectiveness, delivering over US\$201 million in savings. Currently, more than 1.5 billion RFID-tagged units are ready for serialization, offering a significant opportunity for broader implementation and long-term value creation. With this foundation, the Group is well positioned to support a broad-scale implementation rollout once commercial terms are finalised… The Company is considering discontinuing its less profitable semiconductor devices trading business to allocate more resources towards scaling its SSP.”

Tone: The statement is cautiously optimistic, highlighting opportunities for expansion but also acknowledging the need for operational reshuffling and the impact of external market conditions.

Events Affecting the Business

U.S. tariffs and trade restrictions resulted in market uncertainty and revenue reduction, particularly impacting the core technology segment.
Termination of a license agreement for COVID-19 ART technology in February 2025.
Relocation of Shenzhen office led to reduced lease-related expenses.
Expansion into healthcare with the acquisition of Rheumatology Associates Pte. Ltd. in July 2025.

Conclusion and Investment Recommendations

Overall Assessment: The financial performance for FY2025 is weak, with revenue and profit declining significantly and no dividend payout. However, the company has strengthened its balance sheet via fundraising and is strategically pivoting towards higher-margin segments (RFID serialization, healthcare). The outlook is neutral to cautiously positive, contingent on successful commercialisation of new initiatives and recovery from macroeconomic headwinds.

Investor Recommendations

If you currently hold the stock: Consider maintaining your position if you believe in the long-term prospects of the Group’s strategic shift (RFID, healthcare). Monitor the execution of new contracts and cost management closely. However, be aware of continued losses and dilution risk from outstanding warrants.
If you do not currently hold the stock: Exercise caution before buying. Wait for evidence of a turnaround in earnings or confirmation of large-scale commercial rollouts, as current financials are weak and uncertainties remain. The fundraising and expansion provide potential, but risk remains elevated.

Disclaimer: This analysis is based solely on information disclosed in the company’s FY2025 financial report. It does not constitute investment advice. Investors should conduct their own due diligence and consult a qualified financial advisor before making investment decisions.