Audience Analytics Limited (SGX: 1AZ): FY2025 Financial Results Analysis

Audience Analytics Limited, a Singapore-listed company specializing in business impact assessments, recognition awards, exhibitions, and business media, has released its full-year and interim financial statements for the period ended 31 December 2025. This article provides a structured analysis of their performance, highlights key metrics, and discusses trends and outlook based on official disclosures.

Key Financial Metrics and Comparative Table

Historical Performance and Trends

• Full-year revenue increased marginally to S\$15.96m from S\$15.57m, driven by growth in the Business Impact Assessment and Recognition segment (+S\$0.77m), offset by a drop in Exhibitions (-S\$0.46m) due to rescheduling of a major event.
• Cost of sales rose significantly (+S\$1.21m) due to higher event-related expenses and staff costs.
• Gross profit declined to S\$8.33m (FY2025) from S\$9.16m (FY2024), with gross margin falling from 58.8% to 52.2% as direct costs outpaced revenue growth.
• Other income dropped to S\$0.54m, mainly from lower fixed deposit interest and absence of a S\$30k Singapore Tourism Board grant.
• Operating profit before tax fell sharply to S\$5.50m (FY2025) from S\$7.42m (FY2024), mainly due to higher costs and unrealised FX losses (S\$0.62m).
• Tax expenses decreased, reflecting lower pre-tax profits.
• Cash and cash equivalents increased by S\$2.03m to S\$23.64m, despite higher dividend payments.

Dividends and Share Capital Actions

• Final dividend proposed for FY2025 is S\$3.49m (1.50 cents/share), marginally higher than S\$3.42m (1.50 cents/share) for FY2024, reflecting a larger share base after bonus issue and vesting of SPRINT share awards.
• Share capital increased significantly during the year due to a bonus issue (56.9m shares) and share awards (2.24m shares), raising total shares from 170.8m to 229.9m.
• Further post-balance sheet expansion: 2.72m new shares issued in January 2026 for VeecoTech acquisition, raising total shares to 232.7m.

Exceptional Items and Corporate Actions

• FX losses of S\$0.62m due to USD weakness against SGD and MYR, affecting fixed deposit values.
• Acquisition: 30% stake in VeecoTech Holdings Sdn. Bhd. completed in January 2026; initial consideration paid in shares (2.72m at S\$0.30/share).
• No asset revaluations, errors, or inconsistencies reported.
• No share buybacks or treasury shares; share dilution occurred due to bonus issue and share awards.
• No major divestments, IPOs, or fundraising during the period.

Related-Party Transactions and Fund Flows

• Lease payments to related parties totaled S\$94,950 for FY2025, consistent with prior year.
• No general mandate for interested-person transactions obtained; related-party transactions are limited to lease arrangements.
• No unusual fund flows observed; IPO proceeds mostly allocated to general working capital, with S\$1.33m remaining for expansion.

Chairman’s Statement & Outlook

Chairman’s Statement:

“The Group remains financially stable and well-capitalised to support its strategic priorities, notwithstanding its lower profit for FY2025.
The Group’s has strengthened its growth platform through strategic investment in VeecoTech Holdings Sdn. Bhd in Malaysia, which are intended to enhance its digital capabilities. In addition, the Group is currently evaluating several potential mergers and acquisitions opportunities and remains selective in pursuing transactions that are aligned with its business focus and financial objectives.
Industry conditions remain influenced by regional economic developments, geopolitical uncertainties and corporate spending behaviour, which may affect discretionary budgets for marketing, branding and event related activities. The industry remains volatile, with ongoing price sensitivity and cost pressures.
With a strong financial position and recognised brands across the region, the Group is well-positioned to manage market uncertainties and advance its growth initiatives. Management remains focused on expanding the Group’s business, strengthening market reach and evaluating opportunities that are aligned with long-term strategic objectives.”

The tone is moderately positive, emphasizing financial strength, prudent capital management, and ongoing expansion, but acknowledges volatility and cost pressures in the industry.

Material Events and Risks

• Industry volatility is expected due to economic and geopolitical factors.
• Corporate budgets for event and marketing activities may fluctuate, affecting revenue certainty.
• No mention of legal disputes, natural disasters, or policy changes directly affecting the business.
• Expansion into digital capabilities (VeecoTech) and potential M&A activity are ongoing.

Conclusion and Recommendations

Overall Performance:
Audience Analytics Limited delivered marginal revenue growth, but faced declining gross margins and profits in FY2025 due to rising costs and FX losses. Cash flow remains robust and the balance sheet is strong. The company is actively expanding via acquisition and remains focused on growth, but faces headwinds from industry volatility and cost pressures.

If You Are Currently Holding the Stock:
Consider holding your position. The company’s strong balance sheet, consistent dividends, and ongoing expansion efforts (VeecoTech acquisition, further M&A) support a positive medium-term outlook. However, monitor gross margins and profitability trends, as continued cost escalation and FX exposure could weigh on future earnings.

If You Are Not Currently Holding the Stock:
Approach with cautious optimism. The stock offers stable dividends and financial strength, but margin erosion and sector volatility present risks. Entry could be considered for exposure to the Southeast Asian business media/events sector, especially if cost pressures are addressed and new acquisitions drive earnings growth.

Disclaimer:
This analysis is based solely on the official financial report and does not constitute investment advice. Please perform your own due diligence and consult a qualified financial advisor before making investment decisions.

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