GLOBAL RESOURCE CONSTRUCTION LTD. (GRC): Interim Financial Analysis for 1H2026

Global Resource Construction Ltd. (“GRC”), formerly known as GRC Limited, released its unaudited condensed interim consolidated financial statements for the six months ended 31 December 2025. The results highlight a transformative period following the acquisition of GRC Construction Group, which has significantly reshaped the company’s financial profile and operating landscape.

Key Financial Metrics and Performance Table

Historical Performance and Trends

GRC’s revenue and profitability have surged, mainly due to the acquisition of GRC Construction Group, which contributed nearly 99% of total group revenue this period. Gross profit margin also expanded significantly. The company’s expanded order book, increased headcount, and consolidation of subsidiary operations resulted in higher administrative expenses, but these were more than offset by the increase in revenue and profits.

Cash Flow and Balance Sheet Movements

• Net Cash from Operating Activities: \$9.68m, a notable increase owing to higher operating profits and improved cash generation from GRC Construction Group.
• Net Cash Used in Financing Activities: -\$17.78m, primarily due to dividend payments, increased deposits pledged, and acquisition of 45% in Eura Construction Supply Pte. Ltd.
• Net Current Assets: Increased from \$46.6m to \$68.2m, reflecting stronger liquidity.
• Total Equity: Rose from \$146.6m to \$157.6m, driven by profit growth and despite dividend payments.

Exceptional Items and Corporate Actions

• Acquisition: Completed the purchase of GRC Construction Group, transforming revenue and profit profile.
• Asset Sales: Sale and transfer of a strata unit at OKH Loyang; disposal of investment properties and non-current assets classified as held for sale.
• Acquisition of Eura Construction Supply: GRC Construction Pte. Ltd. acquired the remaining 45% equity in Eura Construction Supply, now a wholly-owned subsidiary.
• Redomiciliation: Effective 30 January 2026, the company moved its domicile from Bermuda to Singapore, which will result in reclassification of share premium to share capital.

Segmental and Customer Analysis

The construction segment now comprises most of the Group’s activity, with the order book rising to \$2.9 billion (from \$2.3 billion at June 2025). Major customers in the construction, civil infrastructure, and environmental segments contributed significantly to revenue, with some customers accounting for over 10% of total group sales.

Dividend Policy

• No interim dividend was declared for 1H2026, consistent with the Group’s practice of not declaring interim dividends.
• Dividend of \$4.4m was paid in December 2025 for the previous period.

Macroeconomic and Industry Environment

The construction sector in Singapore grew by 4.6% YoY in Q4 2025, supported by robust demand in both public and private sectors. The industrial property sector faces slower rental and asset value growth due to increased supply and subdued sentiment, but GRC’s properties remain nearly fully occupied with lease expiries averaging over one year, mitigating short-term risks.

Management Commentary

Tone: Positive, reflecting confidence in post-acquisition growth and resilience despite macro uncertainties.

“Following the acquisition of GRC Construction Group on 30 April 2025, the Group’s results for the six months ended 31 December 2025 reflect a full-period contribution from GRC Construction Group, resulting in a significant improvement in overall performance. Gross revenue increased from \$5.7 million to \$378.8 million, primarily due to GRC Construction Group’s contribution of \$374.2 million, representing approximately 98.8% of total Group revenue. This contributed to a more than ninefold increase in gross profit, from \$4.5 million to \$41.2 million. Other gains/(losses), net and other income rose from \$0.4 million to \$2.0 million, over four times the prior period, attributable to new income streams and higher interest income from GRC Construction Group. Administrative expenses increased from \$1.7 million to \$21.8 million, reflecting the consolidation of GRC Construction Group, an expanded order book, and higher headcount. Income tax expense correspondingly increased from \$0.3 million to \$4.2 million. Profit after tax rose from \$1.5 million to \$15.9 million, an increase of more than tenfold, with GRC Construction Group contributing approximately 95.4% of the Group’s profit after tax for the period.”

Related Party Transactions & Other Noteworthy Items

• No significant related party transactions or interested person transactions were reported for the period.
• There were no share buybacks, placements, or dilution events.
• No material legal disputes, natural disasters, or policy changes disclosed.
• No errors or inconsistencies noted in the financial statements.

Conclusion & Investor Recommendations

Performance & Outlook: The company’s financial performance is strong, driven by the transformative acquisition and robust demand in the construction sector. The outlook remains positive, with a growing order book, healthy liquidity, and stable property occupancy rates. Risks include industry cyclicality, macro uncertainties, and rising administrative costs, but these are currently offset by strong revenue and profit growth.

For Current Shareholders:

Consider holding your position. The company has demonstrated substantial growth and resilience post-acquisition, with strong cash flow generation and no signs of distress. The lack of interim dividend is consistent with policy, but capital appreciation potential remains.

For Prospective Investors:

If not currently holding, consider monitoring for entry opportunities, especially if the company continues to build its order book and maintain profitability. The transformative acquisition and sector growth support a positive medium-term outlook, but be mindful of execution risks and sector cyclicality.

Disclaimer: This analysis is based strictly on the company’s financial report and does not constitute investment advice. Investors should conduct their own due diligence and consider their risk tolerance before making any investment decisions.

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