Figtree Holdings Limited: Net Profit Declines in FY2024 – Proceed with Caution

Business Description

Figtree Holdings Limited is a provider of commercial and industrial real estate solutions, primarily operating in Singapore, China, and Malaysia. The company acts as the main contractor for its projects in Singapore, covering new construction, A&A works on existing buildings, and refurbishment and upgrading of existing buildings. In China and Malaysia, the company provides design, project, and construction management consulting services. Figtree has also established a strong presence in the property development sector in China, with a diverse portfolio of residential, commercial, and industrial properties. [[2]]

Financial Statement Analysis

Income Statement

The report indicates that Figtree Holdings Limited reported a net loss after tax of \$5,019,703 for the financial year ended 31 December 2024 (FY2024). This represents a significant decline in profitability compared to the previous year. [[2]]

Balance Sheet

As of 31 December 2024, the company reported net current liabilities (excluding “amounts due to subsidiaries”) of \$1,119,845, indicating a deterioration in its working capital position. Additionally, the group reported an adjusted deficiency in net current assets of \$1,121,175, after excluding a loan to an associate that is in default. [[3]]

Cash Flow Statement

The report does not provide specific details on the company’s cash flow statement. However, it mentions that based on the cash flow forecast, the group is able to generate positive cash flows from its operations. [[6]]

Key Findings

The key findings from the financial statement analysis are as follows: – The company reported a significant net loss of \$5,019,703 in FY2024, indicating a decline in profitability. – The company’s working capital position has deteriorated, with net current liabilities (excluding “amounts due to subsidiaries”) of \$1,119,845 as of 31 December 2024. – The company’s ability to continue as a going concern is dependent on its ability to generate sufficient positive cash flow from operations and obtain necessary funding to meet its obligations as they fall due. [[3-6]]

Recommendation for Investors

Based on the financial information provided in the report, we recommend the following for investors:

Existing Shareholders

If you are currently holding Figtree Holdings Limited stock, we recommend proceeding with caution. The company’s financial performance has deteriorated, with a significant net loss and a weakened working capital position. The going concern assumption is also subject to material uncertainties, which could impact the company’s ability to continue operations. We suggest closely monitoring the company’s progress and considering selling your shares if the financial situation does not improve.

Potential Investors

If you are not currently holding Figtree Holdings Limited stock, we recommend avoiding investment at this time. The company’s financial performance has declined, and there are significant concerns about its ability to continue as a going concern. Until the company demonstrates a clear path to financial stability and profitability, we suggest refraining from investing in Figtree Holdings Limited.

Disclaimer

The recommendations provided are based solely on the information contained in the financial report provided. Investors should conduct their own due diligence and consult with financial advisors before making any investment decisions.

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