Sheffield Green Ltd. FY2025: Financial Results & Analysis

Sheffield Green Ltd., a Singapore-listed company specializing in human resource services and ancillary offerings to the renewable energy industry, has published its unaudited condensed interim financial statements for the six months and full year ended 30 June 2025. Below, we break down the key metrics, performance trends, dividend policies, and notable events for investors.

Key Financial Metrics

Full-Year Comparison (FY2025 vs FY2024)

Historical Performance Trends

• Revenue: Steady YoY growth (+12.1%). Revenue accelerated in 2H2025, driven by higher demand from existing and new clients, as well as the commencement of the training segment.
• Profitability: Significant swing from a modest profit in FY2024 (\$80k) to a robust profit in FY2025 (\$973k). The company reversed a 2H2024 loss to a strong 2H2025 profit.
• Gross Margin: Margins improved, with gross profit up both YoY and QoQ.
• Dividend: Total dividend per share decreased sharply YoY, reflecting a more conservative payout ratio despite improved profits.
• EPS: Earnings per share improved markedly, with 2H2025 outpacing both 1H2025 and 2H2024.

Exceptional Items and Corporate Actions

• Acquisition: The company completed the acquisition of a training centre business in Spain, resulting in the recognition of provisional goodwill (\$710,649) and intangible assets. This strategic move is expected to support long-term growth and geographical diversification.
• Divestment: The group disposed of a French subsidiary in September 2023 to ring-fence legal risk, with a gain on disposal of \$603,525 recorded in equity.
• IPO and Fundraising: Sheffield Green listed on the Catalist Board of SGX-ST on 30 Oct 2023, raising gross proceeds of S\$6 million. As of August 2025, a substantial portion of net proceeds remains allocated to business expansion.
• Dividends: Interim and final dividends for FY2025 total S\$0.004 per share, down from S\$0.015 in FY2024, despite stronger profits.
• Related-Party Transactions: Payments and receipts with related companies are disclosed, but there are no apparent material concerns.

Directors’ Remuneration

• Directors’ fees: \$120,254 for FY2025.
• Directors’ remuneration: \$400,127 for FY2025.
• Total staff costs (including directors): \$15.0 million for FY2025 (up from \$13.3 million in FY2024), with increased headcount in the training segment.

Chairman’s Statement

“The long-term outlook for the offshore wind sector remains robust, fuelled by global decarbonisation commitments, technological innovation, and increased investment. According to industry forecasts, global offshore wind capacity is projected to reach 228–298 GW by 2030, up from approximately 73 GW in 2024, with the potential to approach 1,000 GW by 2050. Offshore wind is expected to supply 7–9% of global electricity by mid-century. Countries such as Taiwan, South Korea, Vietnam, and Japan are rapidly scaling up their offshore wind activities, creating strong demand for skilled personnel across the value chain. By 2025, global demand for offshore wind workers is projected to reach 589,000, up from 297,000 in 2020, and is expected to rise to 868,000 by 2030. Sheffield Green’s investments in training, accreditation, and geographic expansion are aligned with these industry trends, enabling the Group to support the development of local talent and meet the growing needs of renewable energy developers and contractors.”

Tone: Positive and forward-looking, emphasizing growth drivers and sectoral tailwinds.

Dividend Policy and Payment

• FY2025 Proposed Final Dividend: S\$0.002 per share, payable 11 November 2025 (subject to AGM approval).
• Dividend Yield: Lower than prior years, signaling a more cautious approach to capital allocation.
• Dividend is one-tier tax exempt.

Significant Events and Outlook

• Expansion: Acquisition in Spain and new joint venture in Malaysia to capture offshore wind training opportunities.
• Cash Position: Healthy, with \$5.9 million in cash as of 30 June 2025 (down from \$6.6 million YoY), supporting future expansion.
• No major legal or policy risks disclosed.
• Industry Outlook: Very strong, with global offshore wind and corresponding workforce demand set to grow rapidly.

Conclusion & Investor Recommendations

Overall Assessment: Sheffield Green Ltd. delivered a strong turnaround in FY2025, with healthy revenue growth, significant profit recovery, and positive momentum from new business lines (training and geographic expansion). Gross margins and EPS improved, and management is upbeat about industry prospects. The dividend, however, was sharply reduced, reflecting prudent capital management or a shift in payout policy.

• If you are currently holding the stock: The company’s fundamentals have strengthened, and its sector outlook remains attractive. Consider maintaining your position to benefit from long-term growth, especially if you are not reliant on high near-term dividends. Monitor for delivery of post-acquisition earnings and any changes in capital allocation or payout policy.
• If you are not currently holding the stock: Sheffield Green Ltd. is exposed to a fast-growing sector and has demonstrated its ability to scale revenue and profits. However, the reduced dividend yield may make it less attractive to income-focused investors. Growth-oriented investors may consider accumulating on any weakness, with attention to execution on new ventures and integration of recent acquisitions.

Disclaimer: This analysis is based solely on information extracted from the company’s published financial statements and does not constitute investment advice. Investors should conduct their own due diligence or consult a licensed financial advisor before making any investment decisions.

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