Aedge Group Limited FY2025 Financial Analysis: Continued Growth Amidst Strategic Expansion

Aedge Group Limited (SGX: Not Specified) has published its unaudited financial statements for the six months and full year ending 30 June 2025. The company’s diversified business spans engineering, transport, security & manpower services, and property investment. This analysis provides investors with a clear summary of key financial metrics, performance trends, and management’s outlook as disclosed in the report.

Key Financial Metrics & Performance Table

Historical Performance Trends

• Revenue Growth: The Group delivered strong revenue growth of 17.3% YoY, primarily driven by higher execution of contracts in security, manpower, and transport, as well as the addition of investment property leasing as a new segment.
• Net Profit: Despite higher gross profit and margin improvement (from 12.7% to 13.0%), net loss after tax widened to \$0.89 million (from \$0.59 million in FY2024) due to increased finance costs and reduced other income.
• Gross Profit: Gross profit rose 20.5% YoY to \$3.65 million, reflecting more efficient asset utilisation and better contract margins.
• Other Income: Decreased sharply due to lower government grants and reduced rental income recognition as property leasing was reclassified as a core business segment.
• Administrative Expenses: Slight reduction due to lower rental expenses offsetting other costs.
• Other Expenses: Fell as maintenance costs shifted to cost of sales under the new property investment segment.
• Finance Costs: Increased by 52.7% YoY to \$0.54 million, reflecting higher borrowings for property investments.

Balance Sheet & Cash Flow Highlights

• Non-Current Assets: Rose to \$22.64 million from \$14.15 million, mainly from new investment property acquisitions.
• Current Assets: Fell to \$9.68 million, largely due to cash outflows for property investments and loan repayments.
• Non-Current Liabilities: Increased to \$11.30 million from \$7.11 million, driven by new term loans for property purchases.
• Current Liabilities: Up to \$9.90 million from \$6.36 million, with higher payables and loans from related parties for property investment.
• Cash Flow: Operating cash flow remained robust at \$3.82 million, but net cash decreased due to heavy investing in properties. The Group received interest-free, unsecured shareholder loans, providing short-term liquidity flexibility.
• Working Capital: As of 30 June 2025, Group has net current liabilities of \$0.22 million, but management expects adequate liquidity and ongoing shareholder support for the next 12 months.

Exceptional Items & Corporate Actions

• Impairments: \$82,000 in trade receivables and \$205,000 in inventories were impaired in FY2025, reflecting prudent provisioning.
• Share Placement: Issuance of 1,950,000 new shares raised \$497,000, mainly earmarked for property investment expansion and working capital. As of the report date, \$447,300 remains unutilised.
• No Dividend: The Group did not declare or recommend any dividend for FY2025, as it recorded a net loss.
• Related-Party Transactions: The Group received interest-free, unsecured loans from holding companies and non-controlling shareholders, improving short-term liquidity.
• Subsidiary Incorporation: A new subsidiary, HPF Holdings Pte. Ltd., was incorporated for investment holdings, with paid-up capital increased to \$200,000 post-FY2025.

Chairman’s Statement & Outlook

“The Group’s Engineering division is looking to tap on the improved industry fundamentals. The Building and Construction Authority (BCA) has reaffirmed its projection that Singapore’s total construction demand will range between S\$47 billion and S\$53 billion in 2025 … These positive industry forecasts underpin a healthy pipeline of opportunities for our Engineering business. We are confident of leveraging this sustained construction demand by targeting projects where we have competitive strengths, while managing costs in the face of a still-challenging operating environment.
For our Transportation business, the Group remains cautiously optimistic as we see a steady uptick in demand for transport services. Recent contract wins in this segment have been secured on longer-term, fixed-contract bases, which help provide more stable revenue streams and reduce volatility in our transport operations…
Our Security and Manpower division is expected to maintain its growth momentum into the next reporting period… We remain vigilant about cost pressures — in particular, the progressive wage model (PWM) introduced by the Ministry of Manpower. These rising staff costs may temper our margin expansion. Nevertheless, the Group is actively managing expenses and enhancing productivity (through training and technology adoption) to mitigate the impact of higher wages.
In our Investment Properties segment, the Group expects a continued gradual pickup in performance … Notably, our second dormitory facility is scheduled to start operations in FY2026, which will increase the revenue-generating capacity of our dormitory business and broaden our tenant base.
Overall, we remain cautiously optimistic about delivering improved results, and we are committed to sustaining this positive momentum to enhance shareholder value in the year ahead.”

(Tone: cautiously optimistic with recognition of industry opportunities and ongoing cost challenges.)

Conclusion & Investment Recommendations

Aedge Group Limited showed strong revenue growth and improved gross margins in FY2025, supported by expansion into property investment and new long-term contracts in its transport and manpower segments. However, net losses widened due to higher finance costs and lower other income, and the Group remains in a net current liability position. Management expects continued financial support and positive cash generation moving forward, with strategic asset enhancements and contract wins underpinning its cautiously optimistic outlook.

• If you currently hold Aedge Group shares: Consider maintaining your position if you believe in the Group’s ability to leverage its expanded asset base and improved industry fundamentals. Watch for signs of margin improvement and successful ramp-up of new property assets. However, stay alert to ongoing cost pressures and the Group’s need for consistent profitability.
• If you do not currently hold Aedge Group shares: It may be prudent to adopt a wait-and-see approach until the Group demonstrates sustained profitability and fuller utilization of its new assets. Monitor upcoming operational cash flow, occupancy rates in new dormitory facilities, and cost management strategies before initiating a position.

Disclaimer: This analysis is based solely on the data and statements contained in the published financial report for the period ended 30 June 2025. It does not constitute investment advice. Investors should perform their own due diligence and consult with financial professionals before making investment decisions.

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