Autagco Ltd. 1Q FY26 Financial Results: Transitioning from F&B to Assisted Living

Autagco Ltd., a Singapore-listed company, has published its unaudited condensed interim financial statements for the three months ended 31 October 2025. The results reflect significant strategic changes, with the group pivoting from its legacy food and beverage (F&B) operations towards the assisted living sector. Below, we provide an in-depth analysis of the key financial metrics, historical context, business developments, and risks as disclosed in the report.

Key Financial Metrics and Comparative Overview

*Assumed same as 1Q FY25 due to lack of explicit quarterly breakdown for 4Q FY25.

Historical Performance Trends

Autagco Ltd. has experienced a continued decline in revenue and profitability year-over-year and quarter-over-quarter. The drop in revenue is primarily due to the winding down and liquidation of its F&B subsidiaries—Superfood Kitchen Pte. Ltd. and The Green Bar Pte. Ltd.—in Q3 and Q4 2025. The group’s new focus on assisted living contributed 38% of total revenue in 1Q FY26, yet overall revenue still fell by 19% year-on-year.

Losses have accelerated, with net loss rising to S\$437,000 in the quarter, a 50% increase year-over-year. Negative EPS doubled to (0.02) cents, and net asset value per share remains negative and deteriorating.

Exceptional Expenses and Asset Impairments

• Asset Disposals and Write-offs: The group disposed of or wrote off S\$455,000 in property, plant, and equipment (PPE) in the quarter, though these were fully impaired in prior periods, resulting in no fresh impact on the P&L.
• Goodwill Impairments: Goodwill was fully impaired in SFK, with an additional S\$19,000 written off in FY25 due to the company’s liquidation.
• Convertible Loan Receivable: A previous fair value loss of S\$686,000 on a convertible loan to SFK left a zero carrying value, with no recovery expected.

Business Restructuring and Corporate Actions

• Divestments & Liquidations: Closure and liquidation of F&B businesses (SFK and TGB) are completed, with TGB deconsolidated from group accounts from December 2025.
• Business Pivot: The group has shifted resources to assisted living, acquiring assets from Crescendo Wellness Living in December 2024 for S\$50,000 (primarily customer contracts).
• Advisory Business: The Australian corporate finance advisory business remains dormant and is slated for deregistration.
• Loans and Fundraising: Ongoing reliance on related-party loans and undertakings from controlling shareholders and directors for working capital and liquidity.

Balance Sheet and Liquidity Risks

The group remains in a capital deficiency (negative equity) of S\$3.07 million at the group level and S\$2.38 million at the company level as of 31 October 2025. Net current liabilities stand at S\$2.21 million. Operating cash outflow was S\$12,000 for the quarter, and cash and equivalents fell to S\$30,000.

Going concern is dependent on ongoing financial support from related parties, including:

• Letters of undertaking from JC Global Developments Pte. Ltd. and Aurico Global Holdings Pte. Ltd. not to call loans and to provide further support.
• Directors and executives deferring S\$652,194 of salaries for two years.
• Loan facilities totaling S\$1.75 million, of which S\$1.22 million remains undrawn.

The auditors and board have flagged material uncertainty regarding the company’s ability to continue as a going concern.

Chairman’s Statement and Outlook

“The assisted living business in Singapore is expected to continue its steady growth as the country transitions into a super-ageing society, with more than 21% of the population projected to be aged 65 or above in 2026. In response to this demographic shift, the government has introduced a range of new initiatives to support seniors, including community care apartments, home support programmes and other measures aimed at facilitating ageing-in-place and community-based care.

Leveraging on the demographic shift, supportive government initiatives and technological advancements, the Company’s wholly-owned subsidiary, Communa Gold, is well positioned to capture growth opportunities in Singapore’s assisted living sector. To strengthen its service offerings, Communa Gold announced the proposed strategic collaborations with r+ Pte. Ltd. (“r+”), a reputable cross-border real estate developer, and AJJ Medtech Holdings Limited (“AJJ”), an integrated medtech solutions provider, in October and November 2025 respectively. Subject to the entry of definitive arrangements, these partnerships are expected to bring together complementary expertise in healthcare technology, senior care solutions and operational support, enabling the Company to deliver more integrated and high-quality assisted living services.

As part of these initiatives, the Company plans to integrate AI and humanoid robotics into its facilities to enhance the assisted living experience. Under the proposed joint venture with r+, the Company is seeking to grow regionally, with the rollout of r+ World Access Series 1 – involving the joint operation and management of up to 15 hospitality projects across 5 countries, namely Singapore, Malaysia, Thailand, Vietnam, Japan. In addition, the Company plans to expand its local presence through participation in the Singapore Land Authority tenders to acquire and manage properties suitable for conversion into assisted living facilities. The Company will provide further updates when there are material developments in relation to these initiatives.

The Company has fully shifted its focus and resources to its assisted living business.”

The tone of the statement is cautiously optimistic regarding the assisted living sector but does not downplay the group’s financial challenges and ongoing reliance on external support.

Dividends

No dividends have been declared or recommended for the current or previous corresponding period, due to continued negative earnings and capital deficiency.

Related-Party Transactions and Unusual Fund Flows

• Ongoing loans and undertakings from the controlling shareholder Aurico Global Holdings Pte. Ltd. and related entities, with extended maturity dates and undrawn facilities.
• Significant director/executive salary deferrals have been obtained to support liquidity.
• All related-party transactions were below S\$100,000 for the quarter.

Events Impacting the Business

• Closure and liquidation of F&B operations reduce legacy drag but also eliminate a revenue stream.
• The group is exposed to risks if government elderly care initiatives change or market competition intensifies in the assisted living sector.
• Reliance on related-party support to remain solvent is a key risk.

Conclusion and Investor Recommendations

Overall Assessment:

Autagco Ltd. is in the midst of a high-risk transition, having exited its F&B business amid mounting losses and negative equity. While the assisted living business offers growth potential—backed by demographic tailwinds and government support—the group’s precarious financial position, negative operating cash flow, and dependence on related-party support suggest its outlook remains weak at present. Until the new business model demonstrates consistent profitability and cash generation, the investment case is speculative.

Investor Recommendations

• If you currently hold this stock: Exercise caution. Monitor the group’s liquidity position and progress in scaling the assisted living business. Consider reducing your exposure unless you have high risk tolerance and believe strongly in the sector’s long-term prospects. Immediate turnaround is unlikely.
• If you are not currently holding this stock: It is prudent to stay on the sidelines until the group achieves operational breakeven and demonstrates the ability to fund growth internally, without recurring reliance on shareholder bailouts or related-party loans.

Disclaimer: This analysis is based strictly on information disclosed in the company’s report. It does not constitute financial advice. Please consult a licensed advisor and conduct your own due diligence before making investment decisions.

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