Bromat Holdings Ltd. Q4 and Full Year Ended 30 September 2025: Financial Analysis

Bromat Holdings Ltd. (formerly No Signboard Holdings Ltd.) has released its unaudited condensed interim consolidated financial statements for the fourth quarter and full year ended 30 September 2025. The Group operates food & beverage outlets and is listed on the Singapore Exchange’s Catalist board. This article analyzes the company’s latest financial performance, key metrics, corporate actions, and outlook for investors.

Key Financial Metrics and Performance Table

*Q3 2025 and Q3 figures estimated based on half-year splits in report.

Historical Performance Trends

The Group’s financial performance has deteriorated sharply in FY2025. Revenue from continuing operations decreased by 87.9% YoY, primarily due to the closure of two outlets in September 2024 and only partial offset by the opening of a new outlet, Shang Society in January 2025. Net loss for the year rose dramatically, with losses from continuing operations exceeding \$2.8 million versus \$0.48 million a year ago. The net asset value per share declined from (1.34)c to (2.27)c.

Exceptional Items and Corporate Actions

• Major Transaction – Disposal of Dining Haus Pte Ltd: Dining Haus, acquired in February 2024, was reclassified as an asset held for sale after an agreement to dispose of the stake for \$1 million. The transaction triggered a statutory demand due to delayed payment from the purchaser.
• Convertible Redeemable Preference Shares: On 21 October 2025, Gazelle Ventures converted 145 million CRPS into ordinary shares, increasing share capital from 308 million to 453 million shares, causing substantial dilution.
• Rights Issue Termination: Proposed rights issue was terminated in August 2025, with \$3 million in advance deposits refunded to investors.
• Fundraising and Related-Party Loans: Significant loans and advances from Director Mr. Frank Liu Tao, totaling over \$2.7 million, were used to support working capital. These included a \$600,000 loan at 15% per annum and interest-free advances.

Cash Flow and Balance Sheet Analysis

Net cash used in operating activities was \$2.0 million for FY2025, reflecting higher operating losses. Investing cash outflows were muted at \$53,323, mainly for equipment purchases, partially offset by a \$200,000 deposit for the proposed disposal of Dining Haus. Financing cash flows were positive (\$1.8 million) due to loans and advances from the Director. Cash and equivalents at year-end fell to \$25,094.

Current liabilities increased from \$6.5 million to \$9.0 million, mainly due to new director loans and advances. Non-current liabilities rose with increased lease liabilities for the new outlet. The Group’s equity position worsened, with net equity negative at \$(6.85) million.

Dividends

No dividends were declared for the current or previous financial year, due to a lack of distributable profits.

Related Party Transactions

• Director Loans: Mr. Frank Liu Tao provided a \$600,000 loan with 15% interest and a 2.5% utilization fee, plus additional interest-free loans and advances exceeding \$1.5 million.

Events Impacting Business and Outlook

• Closure of Outlets: Two restaurant outlets ceased operations in September 2024 due to lease expiry, causing a sharp drop in revenue.
• Launch of New Outlet: Shang Society opened in January 2025 and contributed to revenue, but not enough to offset closures.
• Ongoing Disposal Issues: Delays and statutory demand linked to the Dining Haus sale create uncertainty about asset recovery.
• Liquidity Support: The company remains dependent on director loans and undertakings for working capital; a fresh \$3 million guarantee is expected by December 2025.
• Industry Headwinds: Management expects a challenging F&B environment due to rising costs and thin margins.

Chairman’s Statement and Management Tone

“The Group expects the operating environment of the local food and beverage industry to remain challenging in the next 12 months, due to cost pressures from higher operating and manpower costs that will impact profit margins. Despite the challenges, there are opportunities for businesses to succeed and thrive in this dynamic market. The Group has opened the new outlet, Shang Society in January 2025 and is working towards increasing its revenue streams. The Group is committed to re-building and growing its business for sustainable growth and will continue to look out for opportunities to expand our footprint and business while managing our resources efficiently to navigate the challenges.”

The statement is cautiously optimistic but acknowledges significant risks and industry headwinds.

Conclusion and Investment Recommendations

Overall Assessment

Bromat Holdings Ltd. has posted a significantly weaker financial performance for FY2025, marked by steep revenue declines, widening losses, shrinking asset base, heavy dependence on director loans, and ongoing uncertainty surrounding a major asset disposal. The company’s financial position is precarious, with negative equity and dwindling cash reserves, though management is relying on fresh guarantees and new revenue initiatives for survival.

Investor Recommendations

• If you are currently holding this stock: Consider reducing or exiting your position, unless you have high risk tolerance and confidence in management’s ability to execute a turnaround. The risks of further dilution, weak financials, and dependence on related-party funding are elevated.
• If you are not holding this stock: Avoid initiating a position until the company demonstrates sustainable revenue growth, profitability, and resolution of its liquidity and disposal uncertainties. Wait for audited financials and clearer evidence of recovery.

Disclaimer: This analysis is based solely on the information provided in Bromat Holdings Ltd.’s unaudited financial report for the year ended 30 September 2025. It does not constitute financial advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions.

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