TrickleStar Limited FY2025 Results Review: Navigating Competitive Challenges

TrickleStar Limited, a Singapore-listed provider of advanced power strips and energy-saving products, released its full-year and half-year audited condensed interim financial statements for the period ended 31 December 2025. The results highlight a difficult year, marked by revenue declines, margin improvement, and strategic adjustments to a changing market landscape.

Key Financial Metrics and Performance Table

Historical Performance Trends

• Revenue for FY2025 dropped sharply by 49.4% to \$5.8M from \$11.5M in FY2024, driven by reduced demand due to U.S. tariffs and pricing sensitivity among key customers. 2H revenue fell 70.9% YoY.
• Despite the top-line contraction, gross profit margin improved substantially to 34.7% for the full year (up from 18.7% in FY2024), bolstered by reversal of provisions for anti-dumping duties and tariffs, and proactive price increases.
• Net loss narrowed to \$0.16M in FY2025 from \$0.67M in FY2024, reflecting strict cost controls and improved margins.
• EPS improved but remained negative, at -0.11 US cents for FY2025 (vs. -0.79 US cents in FY2024).
• No dividend was declared for the period, consistent with the company’s revised dividend policy from 2022.

Balance Sheet and Cash Flow

• Cash and bank balances increased to \$1.48M (from \$1.24M), and net cash from financing activities was positive at \$0.55M, mainly from rights share issuance.
• Working capital remained strong at \$5.01M.
• Property, plant and equipment increased slightly due to additions and depreciation; intangible assets decreased due to amortization.
• Current liabilities fell significantly, mostly due to reversal of customs duties and lower trade and other payables.

Corporate Actions: Share Capital and Fundraising

• Share capital increased to 154.7M ordinary shares (from 84.3M), due to a rights issue and performance share plan awards. The rights issue raised gross proceeds of about \$0.6M, with most proceeds allocated to working capital.
• No treasury shares, convertible instruments, or subsidiary holdings outstanding.
• No major divestments, asset sales, or acquisitions during FY2025.

Exceptional Items and Events

• Reversal of anti-dumping duties and tariffs (\$0.23M) and provision for inventory obsolescence (\$0.05M) contributed positively to profit in FY2025.
• Impairment loss recognized for PlugLoad Pte. Ltd. (\$0.30M) in the year.
• Rights Issue expenses were about \$0.15M.

Directors’ Remuneration

• Directors’ fees increased slightly (\$0.03M YoY), reflecting changes in board composition.
• Performance share plan expenses recognized were \$0.10M for the year.

Business Outlook and Chairman’s Statement

Chairman’s Statement:
“TrickleStar’s Advanced Power Strips (“APS”) remain our core product and continue to be central to the Group’s revenue generation and strategic positioning. Notwithstanding the softer sales performance in FY2025, the Board believes there remains underlying demand for APS products. However, the APS market has become increasingly competitive, resulting in heightened pricing sensitivity from utilities and programme implementers. In response, the Group has undertaken a comprehensive review of its manufacturing and route-to-market processes to improve cost efficiency, strengthen margins, and maintain pricing competitiveness. The Group has also continued to evaluate alternative sales channels and programme structures to diversify revenue streams and reduce reliance on a limited number of key customers. … Looking ahead, TrickleStar’s strategic priorities for the next 12 months will be to stabilise revenue, improve gross margins, and enhance operating efficiency. The Group will focus on: (i) strengthening and defending its core APS business; (ii) expanding the commercial footprint of the Advanced Keyboard; and (iii) maintaining disciplined cost management across the organisation. The Board remains mindful of potential risks associated with U.S. tariff policies and broader supply chain dynamics, which could affect input costs and pricing. Management will continue to monitor these developments closely and take appropriate mitigating actions where necessary.”

Tone: The Chairman’s statement is cautiously optimistic, acknowledging current competitive pressures and revenue softness, but highlighting improvements in margin and strategic initiatives to diversify and stabilize the business.

Events and Risks

• Major revenue concentration: 82% of revenue derived from three customers, down from 91% from five customers in the prior year.
• Market remains vulnerable to U.S. tariff policy shifts and supply chain disruptions.
• Advanced Keyboard product gained regulatory validation but slower-than-expected rollout tempered near-term revenue impact. Broader adoption is anticipated in 2026.
• No dividend declared to support reinvestment and working capital enhancement.

Conclusion and Investment Recommendations

Overall Assessment: TrickleStar’s FY2025 performance is neutral to weak. While margins have improved and losses narrowed, the sharp revenue decline highlights underlying demand challenges and reliance on a few major customers. The company’s strategic response—cost control, margin improvement, and product innovation—provides a foundation for future stability, but near-term risks remain elevated.

If you are currently holding TrickleStar shares: Consider maintaining your position if you believe in management’s ability to execute margin improvement and product diversification strategies. However, be aware of continued revenue volatility and concentration risks. Monitor progress on Advanced Keyboard adoption and any changes in U.S. tariff policy closely.

If you are not currently holding TrickleStar shares: Cautious investors may wish to wait for clearer signs of revenue stabilization and broader customer diversification before entering. The improved margin and cash position are positives, but continued competitive pressures and slow program rollouts warrant patience.

Disclaimer: This article is based strictly on the company’s published financial report and does not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence and consult professional advisors before making investment decisions.

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