Salt Investments Limited: H1 FY2026 Interim Financial Review
Salt Investments Limited, listed on the Singapore Exchange, has released its unaudited interim financial statements for the six months ended 30 September 2025. The Group’s operations, focused on investment holdings in the maritime sector, have seen substantial changes over the past year, primarily due to the consolidation of new subsidiaries and capital-raising initiatives. Below, we analyze the key financial metrics, performance trends, significant transactions, and outlook based strictly on the company’s disclosures.
Key Financial Metrics and Comparative Performance
| Metric |
2Q FY2026 |
1Q FY2026 |
2Q FY2025 |
YoY Change |
QoQ Change |
| Revenue (S\$’000) |
3,917 |
5,263 |
0 |
N/M* |
-25.5% |
| Gross Profit (S\$’000) |
726 |
493 |
0 |
N/M* |
+47.3% |
| Loss After Tax (S\$’000) |
(192) |
(315) |
(498) |
+61% |
+39% |
| EPS (Basic & Diluted, S’pore cents) |
(0.0017) |
(0.0020) |
(0.0114) |
+85% |
+15% |
| Net Asset Value/Share (S’pore cents) |
0.1136 |
0.4470 |
0.4470 |
-74.6% |
-74.6% |
| Dividend (cents/share) |
0 |
0 |
0 |
No change |
No change |
*N/M: Not meaningful, as the previous period reported no revenue.
Performance Review and Trends
The Group achieved S\$9.18 million in revenue for the first half of FY2026, compared to zero in the corresponding period last year. This surge is attributable to the commencement of consolidated revenue recognition from Prosper Excel Engineering Pte Ltd and TT Oil Pte Ltd, acquired during the period. Gross profit margin improved to 13.3% from 9.4% in the previous quarter, reflecting operational efficiencies and business integration benefits.
Administrative expenses increased sharply to S\$1.74 million from S\$0.689 million a year earlier, driven by costs associated with the new subsidiaries and higher senior executive remuneration. The group narrowed its loss after tax to S\$507,000 for H1 FY2026, a 27% improvement YoY. The Q2 loss after tax of S\$192,000 is a significant reduction from Q1’s S\$315,000, reflecting improved performance from the newly integrated subsidiaries.
Balance Sheet and Cash Flow Highlights
- Total Assets: Grew to S\$38.29 million from S\$23.33 million at the end of the previous financial year, due to business combinations and capital inflows.
- Current Assets: Rose to S\$21.62 million, largely from TT Oil’s consolidation and cash raised through share subscriptions.
- Net Asset Value/Share: Fell sharply to 0.1136 S’pore cents, largely due to a substantial increase in the number of shares outstanding following capital raises.
- Cash Flow: Net cash outflow from operating activities was S\$359,000. Investing activities consumed S\$3.41 million (mainly from acquisitions), while financing inflows totaled S\$5.35 million, resulting in a net increase in cash of S\$1.58 million for the half-year.
Corporate Actions and Notable Events
- Acquisitions: The Group acquired 60% of TT Oil Pte Ltd for S\$5.57 million (S\$3 million cash and S\$2.57 million in new shares), and previously acquired 51% of Prosper Excel Engineering Pte Ltd.
- Fundraising: Substantial equity was raised via new share subscriptions (S\$5.75 million completed in October 2025), increasing share capital and liquidity.
- Intangible Investments: The Group invested S\$4 million in proprietary digital platform development for the maritime industry, under a joint collaboration with Lyte Ventures Pte Ltd.
- Goodwill and Asset Impairment: Goodwill on consolidation stands at S\$12.29 million, with an impairment loss of S\$2.48 million recognized in the period to reflect recoverable values post-acquisition.
- No Dividend: No interim or final dividend was declared for the period, consistent with the prior year, due to the ongoing net loss.
- Related Party Transactions: Minimal, with interest on loans to Prosper Excel Engineering disclosed and full compliance with Singapore Exchange rules affirmed.
- Management Remuneration: Director and senior management remuneration increased, in line with new hires and expanded operations.
Chairman’s Statement and Outlook
“Maritime transport continues to account for approximately 80–90% of global trade volume, supported by improving trade flows. While geopolitical tensions are beginning to unwind, their residual impact on global supply chains, such as trade re-routing arising from the Red Sea crisis, may persist and continues to favour the global shipping demand… The positive momentum bodes well for the Group’s two subsidiaries, Prosper Excel Engineering Pte. Ltd. and TT Oil Pte. Ltd.… The Group’s long-term growth strategy remains firmly intact, focusing on providing capital for high-quality but overlooked maritime operators to fuel their expansion and capture attractive returns through their growth journey… The Board and management remain optimistic in the Group’s positioning and will continue to monitor market conditions and industry developments to capture opportunities across maritime engineering, fuel logistics and supplies as well as alternative financing solutions.”
The tone is cautiously optimistic, highlighting industry tailwinds and integration success, while acknowledging ongoing global uncertainties.
Conclusion and Investor Recommendations
Salt Investments Limited has undergone a transformative period, shifting from a dormant holding company to an active maritime sector consolidator. Revenues have surged due to acquisitions, and operational losses are narrowing. However, administrative costs remain high and net asset value per share has declined due to dilution. The Group’s balance sheet is strengthened through capital raising, and future growth depends on continuing integration success, operational improvements, and the realization of value from digital transformation investments.
Recommendation for Current Shareholders
- Hold: The Group’s operational metrics are trending positively, with revenue growth and narrowing losses. The expanded share base and ongoing investments point to a long-term transformation, but near-term volatility should be expected as integration continues and digital investments have yet to yield returns.
Recommendation for Potential Investors
- Wait and Monitor: While Salt Investments is positioned for growth in a recovering maritime sector, the lack of profitability, absence of dividends, and significant dilution suggest waiting for clearer signs of sustainable earnings and successful business integration before initiating a position.
Disclaimer: This analysis is based solely on the company’s published financial results and does not constitute investment advice. Please consult your financial advisor and consider your risk tolerance before making any investment decision.
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