Noel Gifts International Ltd: FY2025 Financial Analysis and Review
Noel Gifts International Ltd has released its unaudited financial statement for the full year ended 30 June 2025. This report provides a comprehensive overview of the group’s operating performance, financial position, cash flows, and dividend declaration, with comparisons to previous periods. Below is a structured analysis for investors and market followers.
Key Financial Metrics & Performance Highlights
Metric |
2H 2025 |
2H 2024 |
FY 2025 |
FY 2024 |
YoY Change |
QoQ Change (2H) |
Revenue |
\$11,784k |
\$10,515k |
\$17,604k |
\$16,667k |
+5.6% |
+12.1% |
Gross Profit |
\$5,820k |
\$5,096k |
\$8,845k |
\$8,205k |
+7.8% |
+14.2% |
Profit from Continuing Ops (Net of Tax) |
\$1,345k |
\$504k |
\$262k |
(\$853k) |
n.m. |
n.m. |
EPS – Continuing Ops (cents) |
0.26 |
(0.83) |
0.26 |
(0.83) |
n.m. |
n.m. |
Net Asset Value/Share (Group, cents) |
31.26 |
42.83 |
31.26 |
42.83 |
-27.0% |
n/a |
Dividend Declared |
None |
None |
None |
\$12.3m |
-100% |
n/a |
Historical Performance and Trends
- Revenue Growth: Revenue increased 5.6% YoY, mainly due to a \$2.6 million sales contribution from the SG60 government project.
- Profitability: Gross profit margin improved from 49.2% to 50.2%. The group returned to profitability in FY2025 with \$262k net profit from continuing operations after a loss of \$853k last year.
- Cash Flow: Net cash used in operating activities was \$50.2 million, driven primarily by a \$43.9 million increase in property development costs. Cash and cash equivalents fell from \$9.8 million to \$4.3 million.
- Assets and Liabilities: Current assets increased substantially due to the new property development, but net asset value per share declined by 27% YoY as a result of higher borrowings (\$33.5 million) secured by development properties.
Dividends
- FY2025: No dividend declared for the current period.
- FY2024: The company paid a total of \$12.3 million in dividends (first & final plus special dividend).
- Dividend Policy: The Board cited the need to conserve cash to maintain liquidity and support ongoing investments and initiatives as the reason for not declaring a dividend in FY2025.
Exceptional Items & Corporate Actions
- Discontinued Operations: In FY2024, the group recognized a significant profit from discontinued operations due to the disposal of an investment property. No such gain was recorded in FY2025.
- Property Development: In March 2025, a freehold land parcel was acquired for development and sale. This led to a spike in development costs and borrowing.
- Borrowings: A new \$33.5 million loan was secured for property development, increasing non-current liabilities.
- No Share Buybacks or Placement: There were no changes in share capital, buybacks, or placements during the period.
- Related Party Disclosure: Managerial roles held by relatives of the Managing Director and substantial shareholder are disclosed; no significant changes in duties.
Management Commentary
Chairman’s Statement:
“The Board has determined that it is in the best interests of the Company to conserve cash to preserve operational liquidity and to support ongoing and planned investments and/or other business initiatives.”
The tone is cautious and focused on financial stability, reflecting management’s priority on liquidity and investment over distributions to shareholders.
Industry Trends & Outlook
- Gifts Division: Operating environment remains challenging due to declining demand and rising costs. However, government contracts such as the SG60 Family Packs are expected to contribute positively in the next year.
- Property Development: The new development project is expected to commence in the coming financial year, which may impact future financials.
Conclusion & Investment Recommendations
Overall Assessment: The group’s financial performance in FY2025 showed a modest recovery with a return to profit from continuing operations and improved gross margins. However, the significant increase in development assets and associated borrowings has led to a sharp decrease in net asset value per share, and the lack of dividends signals a conservative stance amid industry headwinds.
- For Existing Shareholders: Investors currently holding this stock should monitor the execution and progress of the property development project, as its success is crucial for future returns. The lack of dividend may disappoint income-focused investors, but the company’s increased asset base and government contracts in the Gifts division provide some upside potential. Consider holding if you are comfortable with medium-term risk and potential for capital appreciation, but reassess if liquidity or dividend payouts are your priority.
- For Prospective Investors: Those not currently holding the stock may wish to wait for greater clarity on the property development’s progress and a return of dividends before initiating a position. While the group has transitioned to profitability, ongoing industry challenges and high leverage warrant a cautious approach. Observe upcoming quarterly results and management’s ability to deliver on the development project.
Disclaimer: This analysis is based solely on information disclosed in the company’s unaudited financial statements for FY2025. It does not account for external market factors or subsequent events. Investors should conduct further due diligence and consult with a financial advisor before making investment decisions.
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