GRP Limited (SGX: GRP) FY2025 Financial Analysis
GRP Limited has released its audited financial statements for the financial year ended 30 June 2025. This analysis focuses on material differences between audited and unaudited results, key financial metrics, and exceptional items. Investors should note that all data and commentary are strictly based on disclosed report content.
Key Financial Metrics and Material Adjustments
The audited financials reflect several reclassifications but no change to the net loss for FY2025. Notable adjustments include:
- Onerous contract losses reclassified from administrative expenses to cost of sales.
- Contract assets reclassified to other receivables due to completion of contractual obligations.
- Separate disclosure of contract liabilities.
- Some impairment losses and finance costs reclassified to administrative expenses.
- Significant reclassification in the statement of cash flows, notably restricted bank balances and interest received.
Financial Metrics Table
| Metric |
Audited FY2025 |
Unaudited FY2025 |
Variance (\$’000) |
Variance (%) |
| Cost of Sales |
10,419 |
9,437 |
982 |
+10.4% |
| Administrative Expenses |
4,551 |
5,416 |
(865) |
-16.0% |
| Net Impairment on Financial Assets |
16 |
123 |
(107) |
-87.0% |
| Finance Costs |
26 |
36 |
(10) |
-27.8% |
| Other Receivables |
3,477 |
1,320 |
2,157 |
+163.4% |
| Contract Assets |
0 |
2,157 |
(2,157) |
-100.0% |
| Contract Liabilities |
1,794 |
0 |
1,794 |
+100.0% |
| Trade Payables |
3,361 |
2,711 |
650 |
+24.0% |
| Other Payables |
2,073 |
4,517 |
(2,444) |
-54.1% |
| Net Cash from Operating Activities |
(6) |
1,834 |
(1,840) |
-100.3% |
| Net Cash from Investing Activities |
674 |
(1,092) |
1,766 |
>100.0% |
| Net Change in Cash & Equivalents |
(39) |
35 |
(74) |
>100.0% |
Exceptional Items and Explanatory Notes
- Onerous contract losses: \$0.982 million loss reclassified to cost of sales, related to the affordable housing project in Perak, Malaysia.
- Impairment and Finance Costs: \$0.107 million impairment losses and \$0.010 million finance costs moved to administrative expenses.
- Contract Assets and Liabilities: \$2.157 million of contract assets reclassified to other receivables. \$1.794 million contract liabilities separated from other payables.
- Cash Flows: Restricted bank balances and interest received reclassified, affecting both operating and investing cash flows.
Historical Performance Trends
While the report does not provide explicit historical comparisons (YoY or QoQ), several significant reclassifications indicate a shift in how the company recognizes costs and liabilities. The net loss remains unchanged despite adjustments, suggesting that the underlying business performance is stable but challenged by exceptional losses, particularly from the Perak project.
Errors, Inconsistencies, and Corporate Actions
- The financial report highlights material reclassifications but no errors or inconsistencies affecting the net loss.
- No mention of asset revaluation, directors’ remuneration, dividends, share buybacks, fundraising, or major corporate actions.
- No disclosure of events such as natural disasters, legal disputes, or policy changes that could impact future results.
Chairman’s Statement
No Chairman’s Statement is included in this report.
Conclusion and Investor Recommendations
Overall Assessment: The financial performance of GRP Limited for FY2025 appears weak, mainly due to exceptional losses on projects and significant reclassifications that reflect underlying challenges. The lack of improvement in net loss, combined with cash flow volatility and no dividend disclosures, signals continued operational and financial headwinds.
If You Are Holding GRP Stock:
Consider reassessing your position, as the company faces ongoing losses and project challenges. Unless there is a strategic turnaround or fresh positive developments in future reports, maintaining a large position may be risky.
If You Are Not Holding GRP Stock:
Exercise caution before initiating a new position. The current financials do not indicate an imminent recovery or strong value proposition. Wait for signs of operational improvement, cost control, or new growth opportunities before investing.
Disclaimer: This analysis is based solely on the financial report provided and does not constitute investment advice. Investors should conduct further due diligence and consult a qualified advisor before making any investment decisions.
View GRP^ Historical chart here
