Reclaims Global Limited Secures S\$15.5 Million Contract for Earthworks and Disposal

Reclaims Global Limited (“the Company”), together with its subsidiary group (“the Group”), has announced a significant new business development: its wholly-owned subsidiary, Reclaims Enterprise Pte Ltd, has been awarded a major contract by a main contractor in the construction industry. The total value of this contract stands at S\$15.5 million.

Key Highlights of the Awarded Contract

• Scope of Work: The contract covers the supply of labour and machineries for earthworks and disposal operations. This positions the Group as a key participant in the construction supply chain for a major project.
• Provisional Contract Sum: Of the S\$15.5 million total contract value, approximately S\$12.5 million is set aside as a provisional sum for disposal works. This provisional sum is indicative and subject to adjustment; the final revenue recognized will depend on the actual volume of work carried out.
• Optional Items: The contract includes options for additional disposal works, which could potentially increase the total value and scope of the project, offering further upside for the Group.
• Project Timeline: The project is scheduled for completion by the financial year ending 31 January 2027 (FY2027), with expected contributions to the Group’s earnings for the financial years ending 31 January 2026 and 31 January 2027.
• Financial Impact: Barring unforeseen circumstances, the contract is expected to have a positive impact on the Group’s earnings per share (EPS) and net tangible assets (NTA) for the next two financial years. Investors should note that the final contract sum and impact on financial performance may vary depending on the actual work performed.
• Independence: None of the Company’s Directors or substantial shareholders, nor their respective associates, have any direct or indirect interest in the contract, outside of their shareholdings in the Company (if any).

Why This News Matters for Shareholders

• Potential Price Sensitivity: The award of a large contract, especially with a substantial provisional sum and potential for additional works, is a material development that could positively influence investor sentiment and potentially impact the Company’s share price.
• Revenue Visibility and Growth: This contract provides increased revenue visibility for the Group over the next two years and demonstrates the Company’s competitiveness and ability to secure large-scale contracts in the construction sector.
• Upside Potential: The inclusion of optional disposal works in the contract signals potential for further revenue enhancement, subject to project requirements and scope expansions.
• Risk Factors: Investors should note that the S\$12.5 million provisional sum is not guaranteed revenue and may be subject to adjustments based on actual work performed. Final revenues and earnings impact may differ from indicative figures.

Additional Notes

• The announcement was reviewed by the Company’s sponsor, SAC Capital Private Limited, but has not been approved or endorsed by the Singapore Exchange Securities Trading Limited (SGX-ST).
• Any queries regarding this contract announcement can be directed to Ms. Audrey Mok at SAC Capital Private Limited.

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should perform their own due diligence and consult with their financial advisors before making investment decisions. The actual financial impact of the contract may differ from projections, and past performance is not indicative of future results.

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