Camsing Healthcare Limited: FY2025 Audited Financial Analysis and Key Insights
Camsing Healthcare Limited has released its audited financial statements for the year ended 31 January 2025, following adjustments and reclassifications proposed by its external auditors, Foo Kon Tan LLP. This analysis summarizes the material variances between the unaudited and audited results, highlights key financial metrics, and discusses notable events impacting the company’s performance.
Key Financial Metrics and Variance Analysis
The following table summarizes notable line items where material variances between the unaudited and audited financial results were disclosed. Note that lack of quarter-over-quarter or prior-year data in the report limits comparison to intra-year adjustments only.
| Metric |
Audited FY2025 |
Unaudited FY2025 |
Variance (S\$’000) |
Variance (%) |
| Plant and Equipment |
33 |
178 |
-145 |
-81.5% |
| Right-of-use Assets |
122 |
1,221 |
-1,099 |
-90.0% |
| Trade and Other Payables |
2,496 |
2,163 |
+333 |
+15.4% |
| Borrowings (Non-current) |
1,949 |
2,105 |
-156 |
-7.4% |
| Other Income |
1,869 |
2,046 |
-177 |
-8.7% |
| Marketing & Distribution Expenses |
3,374 |
3,879 |
-505 |
-13.0% |
| General & Admin Expenses |
1,954 |
1,447 |
+507 |
+35.0% |
| Impairment Loss (Plant & ROU Assets) |
1,242 |
0 |
+1,242 |
N.M. |
| Loss Before Taxation |
2,302 |
881 |
+1,421 |
N.M. |
Exceptional Items and Errors in Financials
- Impairment Losses: Significant impairment losses of S\$1.242 million were recognized on plant and equipment and right-of-use assets due to under-performing outlets. This was not reflected in the unaudited results and represents a material downward adjustment.
- Reversal of Payables Write-back: After legal consultation, a previously written-back payable (S\$0.3 million) was reversed as the claim against Nature’s Farm Pte Ltd to I-Nitra Consulting Limited was found to be not yet time-barred.
- Impairment of Investments in Subsidiaries: An independent valuer determined a full impairment of S\$2.3 million on the company’s investment in subsidiaries, reducing the carrying amount to zero.
- Unwinding of Interest: Interest unwinding on non-current loans led to a reduction in reported borrowings and affected other income figures.
- Expense Reclassification: Marketing and distribution expenses were reclassified, resulting in a decrease of S\$505,000, offset by an increase in general and administrative expenses.
Notable Corporate Actions and Risks
- No Dividend Disclosure: The report does not mention any proposed or historical dividends for the period.
- Legal Risks: Management consulted legal counsel regarding the timing of claims under the Limitation Act 1959, which resulted in the reversal of previously written-back payables.
- Asset Valuation Issues: The impairment assessment of investments in subsidiaries was completed after the unaudited results, highlighting delays and risks in asset valuation processes.
Chairman’s Statement and Board Advice
Chairman’s Statement: The Board confirms: “to the best of its knowledge, all material disclosures, facts and information have been provided and announced and are not aware of any facts, information or disclosures, the omission of which would make any statement in this announcement or disclosures misleading.”
The tone is neutral to cautionary, with the Board advising shareholders to exercise caution and consult professional advisors if in doubt.
Conclusion and Investment Recommendations
Performance Summary: The audited results reveal significant material adjustments, mostly negative, including large impairment losses and reversals of previously written-back payables. Loss before taxation more than doubled after audit adjustments. The absence of dividend declaration and the Board’s cautionary advice highlight ongoing risks.
- If you currently hold Camsing Healthcare shares: Consider reviewing your position. The company faces operational challenges, significant asset write-downs, and ongoing legal risks. Unless you have strong conviction in a turnaround, it may be prudent to reduce exposure or exit your position.
- If you do not currently hold Camsing Healthcare shares: There is no compelling reason to initiate a position at this time. Wait for evidence of operational improvement, successful asset recovery, or management actions addressing underlying issues before considering an investment.
Disclaimer: This analysis is based strictly on the information provided in the company’s audited report for FY2025. It does not constitute investment advice and does not take into account individual investment objectives or risk tolerance. Investors should consult with their financial advisors before making any investment decisions.
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