ProsperCap Corporation Limited: Financial Report Analysis
Net Profit Decline: S$40,530,000 Loss for FY2024
Business Description
ProsperCap Corporation Limited (the “Company”) is a Singapore-incorporated company with its core business operations not explicitly stated in the report. However, based on the context, it appears to be involved in a holding company structure with various subsidiaries.
Key Facts
The Company has a net loss of S$40,530,000 for the financial year ended 31 December 2024.
The Group has net current liabilities of S$55,033,000 as at 31 December 2024.
The Company’s independent auditors, KPMG LLP, have included a disclaimer of opinion on the basis of the Group’s going concern assumption.
Financial Highlights
Income Statement:
Net loss: S$40,530,000
Balance Sheet:
Net current liabilities: S$55,033,000
Net assets: S$237,425,000
Cash Flow Statement:
Not explicitly stated in the report
Analysis
The Company’s financial performance for FY2024 is a significant concern, with a substantial net loss of S$40,530,000. The Group’s net current liability position is also a major issue, which has been addressed by the Directors through various agreements with DTGO Corporation Limited (DTGO) to extend the maturity date or payment due date of certain amounts.
Key Risks and Strengths
Risks:
Going concern assumption
Net current liability position
Dependence on DTGO’s support
Strengths:
Positive balance sheet position (net assets: S$237,425,000)
Flexibility to schedule capital expenditure
Dividend and Earnings
No dividend is proposed.
Special Activities
The Company has executed a non-binding term sheet with an independent investor for the private subscription of convertible redeemable preferred shares (Proposed CRPS) to raise proceeds of approximately S$67.7 million.
Recommendations
For current investors:
Hold with caution: The Company’s financial performance and position are concerning, but the Directors have taken steps to address the issues. Investors should closely monitor the Company’s progress.
For potential investors:
Avoid for now: The Company’s financial performance and position are significant concerns. While there are potential plans to raise funds, the risks associated with the investment are high.
Disclaimer:
The recommendations are based solely on the information provided in the report and should not be considered as investment advice. Investors should conduct their own research and consult with financial advisors before making any investment decisions.
Report Details:
Date: 15 April 2025
Financial Year: FY2024 (ended 31 December 2024)
View ProsperCap Historical chart here
