Brook Crompton Holdings Ltd: FY2025 Financial Analysis and Outlook
Brook Crompton Holdings Ltd, a Singapore-listed electric motor distributor, has released its unaudited full-year financial statements for the period ended 31 December 2025. This analysis distills the key financial metrics, year-over-year trends, segment performance, dividend details, and material events affecting the company’s outlook.
Key Financial Metrics and Performance
| Metric |
2H 2025 |
1H 2025 |
2H 2024 |
YoY Change (2H) |
FY2025 |
FY2024 |
YoY Change (FY) |
| Revenue (S\$’000) |
31,196 |
30,304 |
29,877 |
+4.4% |
61,500 |
61,640 |
-0.2% |
| Gross Profit (S\$’000) |
8,837 |
9,093 |
7,883 |
+12.1% |
17,930 |
16,963 |
+5.7% |
| Profit Before Tax (S\$’000) |
1,697 |
1,947 |
969 |
+75.1% |
3,644 |
3,210 |
+13.5% |
| Net Profit Attributable to Owners (S\$’000) |
1,538 |
1,241 |
326 |
+372.7% |
2,779 |
2,632 |
+5.6% |
| EPS (Basic, SG cents) |
3.60 |
4.07 |
1.31 |
+174.8% |
7.67 |
6.20 |
+23.7% |
| Dividend (SG cents per share, Final) |
2.00 |
N/A |
2.00 |
0.0% |
2.00 |
2.00 |
0.0% |
Historical Performance and Trend Analysis
While full-year revenue was marginally lower (-0.2% YoY), gross profit margin improved due to a shift toward higher-margin sales. Profit before tax grew 13.5% and EPS increased 23.7% YoY, reflecting improved profitability despite stagnant topline growth. Notably, 2H 2025 saw a revenue rebound (+4.4% QoQ) and a major spike in net profit attributable to owners (+372.7% YoY for 2H), driven by stronger performance in the UK and North America, higher margin sales, and increased cost discipline.
Segment Performance
– North America and UK & Continental Europe drove the revenue rebound in 2H 2025, offsetting weakness in Asia Pacific and Italy.
– Asia Pacific saw project delays and softer market conditions, especially in newly established Italian and Australian subsidiaries.
Dividends
The Board declared a final tax-exempt cash dividend of 2.0 Singapore cents per share for FY2025, unchanged from FY2024. The ex-dividend date is 11 May 2026 with payment on 29 May 2026.
Balance Sheet and Cash Flow
- Net assets increased by 3.4% to S\$48.9 million, supported by full-year profits and stable dividends.
- Cash and cash equivalents rose to S\$23.5 million (+4.5%), reflecting solid operating cash generation.
- Current ratio remains healthy at 2.8.
- Inventories increased by 12.8% to S\$29.3 million, mainly due to stockpiling in the US to preempt new tariffs and to support sales forecasts.
- Trade receivables fell 12% YoY, indicating improved collection. Overdue receivables >180 days are low, and management does not expect material credit losses.
- Non-current liabilities rose due to higher lease liabilities from new leases.
Exceptional Items and Related-Party Transactions
- Other income was significantly higher due to cost-sharing reimbursements and one-time miscellaneous income from order cancellations and sales of obsolete stock.
- Distribution and marketing expenses increased due to sales commissions and logistics for the North America market.
- Administrative costs decreased, reflecting lower professional and consulting fees.
- Related-party transactions with Wolong Group and associates remain substantial, with purchases exceeding S\$32.5 million in FY2025.
- No material divestments, asset sales, IPOs, or share buybacks were reported.
Macroeconomic and Industry Outlook
The company notes the following trends and risks:
- Continued uncertainty from US tariff changes, prompting manufacturers to shift supply chains and invest in US/Mexico production.
- Rising copper and raw material costs may impact margins and competitiveness.
- Global economic growth is expected to remain steady, though with significant regional divergences and persistent risks (geopolitics, climate, interest rates).
- The company is responding with new product launches (e.g., synchronous reluctance/premium efficiency motors), inventory strategies, and cost vigilance.
Chairman’s Statement
“In the second half of the financial year of 2025, we had seen a slight growth in revenue by 4.4% compared to last year the same period. Despite the uncertainty with the introduction of new tariffs in US the business continued with certain stability due to already existing inventory base. The sales in larger regions UK and NA besides the tariff uncertainty in US and slow market growth in UK had YOY increase on revenue where new customers were brought on board and new products introduced which contributed towards positive revenue growth compared to previous year. The newly established Italian and Australian business continue to experience lack of new projects due to various market conditions, recognition and establishment in these regions. Additionally, we have seen some projects that have been delayed in AP region. We continue with strategy to bring new products in these markets with aim to provide high efficient and sustainable solutions.
We have stayed vigilant throughout the year, and as we observed the challenging market situation, monitoring closely our costs, and have been successful in achieving higher profitability compared to last year and achieved profit before income tax for the year 2025 with growth of 13.5% YOY.”
The tone is cautiously optimistic, highlighting operational resilience and cost discipline amidst macroeconomic and industry headwinds.
Conclusion & Investment Recommendation
Overall Assessment: Brook Crompton delivered improved profitability and cash flow despite slightly lower annual revenue. The balance sheet remains solid, with healthy liquidity and efficient working capital. Risks from tariffs, input costs, and regional slowdowns are being actively managed through inventory planning, new product introductions, and cost controls.
- If you are currently holding the stock: The company’s resilient performance, stable dividends, and strong cash position support a hold recommendation. Investors may wish to monitor tariff and commodity cost developments, but the business fundamentals and management’s response to industry trends appear sound.
- If you are not currently holding the stock: With improving profitability, a sustainable dividend, and prudent management, Brook Crompton could merit consideration for investors seeking defensive industrial exposure. However, potential new investors should be aware of external risks (tariffs, input costs, regional market uncertainty) and may wish to await further evidence of topline growth before initiating a position.
Disclaimer: This analysis is based solely on the company’s official financial disclosures for the period ended 31 December 2025. It does not constitute investment advice. Investors should consider their own objectives and consult a professional advisor before making investment decisions.
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