Attika Group Ltd. 1H2025 Interim Financial Results: Revenue Decline, S$1 Million Dividend Paid, and Business Diversification Plans 35172425

Attika Group Ltd. 1H2025 Financial Analysis: Navigating a Transition Year

Attika Group Ltd., a Singapore-based provider of electrical works, interior design, and interior fit-out services, has released its unaudited condensed interim financial statements for the six months ended 30 June 2025. This review distills key financial metrics, performance trends, dividends, and notable corporate developments, providing a comprehensive overview for investors.

Key Financial Metrics and Performance Overview

Metric	1H2025 (Current Period)	2H2024 (Prior Half-Year)	1H2024 (Same Period Last Year)	YoY Change	QoQ Change
Revenue (S\$’000)	19,319	N/A	39,413	-51.0%	N/A
Cost of Sales (S\$’000)	15,988	N/A	34,841	-54.1%	N/A
Gross Profit (S\$’000)	3,331	N/A	4,572	-27.1%	N/A
Gross Profit Margin (%)	17.2	N/A	11.6	+5.6pp	N/A
Net Profit (S\$’000)	1,687	N/A	1,937	-12.9%	N/A
EPS (cents)	1.24	N/A	1.68	-0.44	N/A
Dividend per Share (cents)	0 (none declared)	0.7353 (final FY24)	N/A	N/A	N/A

Key Observations:

The Group’s revenue declined sharply by 51.0% YoY, primarily due to the absence of a major corporate office project that bolstered results a year earlier.
Cost of sales fell even more steeply, resulting in a higher gross profit margin (17.2% vs 11.6%).
Net profit and earnings per share both decreased, though the decline was less severe than the drop in revenue, indicating effective cost management.
No interim dividend was declared for 1H2025, as the Group aims to conserve cash for operations and investments.

Historical Performance Trends

The first half of 2025 marks a transitional period for Attika Group, following the completion of a large, complex project in 2024. This resulted in lower revenue and profit numbers. However, the company has managed to improve its gross profit margin, signaling more efficient cost controls and a potential shift in project mix or management strategy.

Exceptional Items and Expenses

The prior period (1H2024) benefited from a one-off compensation from legal proceedings (S\$748,000), which was not repeated in 1H2025. Additionally, legal and professional fees dropped significantly (by S\$1.1 million), as did bank charges, reflecting a normalization of expenses post-listing. No impairment losses were recognized in this period, compared to S\$406,000 in 1H2024.

Balance Sheet and Cash Flow Highlights

Non-current assets: Decreased slightly due to depreciation, with no material acquisitions or disposals.
Current assets: Rose by S\$4.0 million, mainly due to increases in contract assets and receivables, reflecting ongoing projects.
Net cash generated from operations: S\$1.3 million, with strong operating cash flow supporting a net increase in cash and cash equivalents of S\$681,000.
Current liabilities: Increased due to higher payables, contract liabilities, and reclassification of a bank loan to current liabilities (to be repaid early).
Gearing: Total borrowings remain substantial (S\$11.6 million), but repayment is ongoing and the Group has sufficient liquidity for now.

Dividends

No interim dividend was declared for 1H2025. The company paid a final dividend of S\$0.007353 per share for FY2024 (S\$1.0 million). The decision to withhold an interim dividend reflects a conservative approach to cash management during a period of lower earnings and ongoing investment needs.

Corporate Actions and Developments

IPO and Fundraising: Attika Group was listed on the Catalist Board in November 2024, raising S\$4.6 million in gross proceeds. A portion of these proceeds is being redirected into a new property business segment.
Business Diversification: In April and June 2025, the Group incorporated two new subsidiaries to pursue property business opportunities, funded entirely from internal resources.
Use of Proceeds: Of the IPO net proceeds, S\$636,000 has been used for the property business, S\$303,000 for working capital, with S\$2.2 million still available for future investments and operations.

Macroeconomic & Industry Outlook

The Building and Construction Authority of Singapore (BCA) projects sector demand to remain robust, with annual demand estimated between S\$39-46 billion through 2029, led by public sector projects. Attika Group states its intent to proactively tender for more projects and strengthen its business model for sustainable growth. Diversification into the property business is also underway.

Chairman’s Statement

“We, Tan Buan Joo and Tang Kim Foo, hereby confirm on behalf of the board of Directors that, to the best of the Directors’ knowledge, nothing has come to the attention of the board of Directors which may render the unaudited consolidated financial statements of the Group for 1H2025 to be false or misleading in any material aspect.”

Tone: The Chairman’s statement is factual and cautious, focusing on compliance and the accuracy of reporting, without providing explicit forward-looking optimism or pessimism.

Related Party Transactions and Other Notables

All advances to directors made before the IPO were fully settled before listing.
No share buybacks, treasury shares, or convertible securities were reported.
No general mandate for interested person transactions was obtained, and no such transactions exceeding S\$100,000 occurred in 1H2025.

Conclusion & Investment Recommendations

Overall Assessment: Attika Group’s 1H2025 results reflect a transition from a period of exceptional growth (driven by a major one-off project) to a more normalized run-rate. While headline revenue and profit are sharply down YoY, gross profit margin improvement and prudent cost management are positive signs. The company is conserving cash, investing in diversification, and remains exposed to sector opportunities in Singapore construction and property.

If you are currently holding Attika Group shares: Maintain a hold stance unless your investment thesis was based solely on extraordinary growth, as the company is in a consolidation and repositioning phase. Monitor execution in the new property business and the ability to secure new projects, as these will determine future upside.

If you are considering buying Attika Group shares: Wait for greater clarity on the success of diversification efforts and a visible uptick in contract wins or property income. The stock may present value if the company delivers on its strategic initiatives, but current earnings momentum is subdued.

Disclaimer: This analysis is based strictly on the company’s published interim financial statements and does not constitute financial advice. Investors should consider their own risk tolerance and seek independent advice before making investment decisions.