Accrelist Ltd FY2025 Audited Financial Results: Losses, Key Variances, No Dividend Declared

Accrelist Ltd FY2025 Financial Results Analysis

Accrelist Ltd has published its audited consolidated financial statements for the year ended 31 March 2025, revealing significant developments in its operational and financial performance. This analysis reviews key metrics, highlights notable variances and exceptional items, and provides insights for current and potential investors.

Key Financial Metrics and Year-on-Year Comparison

Metric	FY2025 (Audited)	FY2025 (Unaudited)	YoY/Variance
Revenue (S\$’000)	14,030	15,660	-10.4%
Cost of Sales (S\$’000)	(8,686)	(10,357)	-16.1%
Gross Profit (S\$’000)	5,344	5,303	+0.8%
Net Loss (S\$’000)	(8,058)	(4,488)	+79.5%
Net Loss Attributable to Equity Holders (S\$’000)	(4,662)	(3,144)	+48.4%
Total Equity (S\$’000)	14,024	17,489	-19.8%
Cash and Bank Balances (S\$’000)	6,231	6,316	-1.3%
Dividend per Share	N/A	N/A	N/A

Note: The report does not provide quarterly breakdowns or specific dividend proposals.

Historical Performance and Trends

Revenue Decline: The Group recorded a 10.4% YoY decrease in revenue. This was mainly due to the disposal of a subsidiary (WE Total Engineering Sdn. Bhd.), which led to a reclassification of revenue and cost of sales to discontinued operations.
Net Loss Deepened: Net loss widened to S\$8.1 million, a 79.5% increase from the unaudited figure, driven by impairment losses and receivables written off.
Gross Profit Stability: Despite the revenue drop, gross profit remained relatively stable at S\$5.34 million, up marginally from the unaudited S\$5.30 million, implying some efficiency in cost controls.
Equity Erosion: Total equity fell by 19.8%, reflecting the impact of losses incurred and adjustments to non-controlling interests and reserves.

Exceptional Items and Audit Adjustments

Impairment Losses: The Group recognized S\$2.5 million in impairment losses on trade and other receivables, mainly related to an associated company. An additional S\$0.6 million was written off relating to property expenses from a disposed entity.
Asset Reclassification: S\$3.2 million in receivables was reclassified as investment properties after the transfer of control of certain assets.
Increase in Borrowings: Borrowings increased significantly due to better recognition of lease liabilities under right-of-use assets.
Non-Controlling Interest Adjustment: There was a S\$0.9 million shift from non-controlling interest to other reserves, reducing non-controlling interest by a further S\$1.1 million due to translation reserve adjustments.
Discontinued Operations: Losses from discontinued operations amounted to S\$0.15 million.

Cash Flow Insights

Cash Flow Metric	FY2025 (Audited)	FY2025 (Unaudited)	Variance
Net Cash from Operating Activities (S\$’000)	(2,706)	1,489	(4,195)
Net Cash from Investing Activities (S\$’000)	1,717	(3,635)	5,352
Net Cash from Financing Activities (S\$’000)	(2,600)	(807)	(1,793)

Operating Cash Flow: Shifted substantially negative due to larger net losses for the year.
Investing Cash Flow: Positive, driven by receipts from non-related parties and net proceeds from the disposal of discontinued operations.
Financing Cash Flow: Negative, mainly due to repayments of lease liabilities.

Divestments and Corporate Actions

Subsidiary Disposal: The Group disposed of WE Total Engineering Sdn. Bhd., leading to a reclassification of related revenue and cost of sales to discontinued operations.
No Announced Dividends or Share Buybacks: No dividend was proposed or paid for FY2025, and there was no mention of share buybacks, placements, or mandates.

Chairman’s Statement

The only formal statement from management is the closing sign-off:

“BY ORDER OF THE BOARD
Dato’ Terence Tea Yeok Kian
Executive Chairman and Managing Director
12 September 2025″

The tone of management’s sign-off is neutral and factual, with no explicit commentary on performance or outlook.

Key Risks and Noteworthy Events

Impairment and Write-offs: Significant impairment losses and receivables written off signal underlying collection and credit risks, particularly with associated companies and external parties.
Audit Adjustments: The audit process led to material restatements, suggesting prior under-recognition of liabilities and overstatement of assets and equity.
Asset Reclassifications: Asset revaluations and reclassifications, particularly the movement from receivables to investment properties, reflect ongoing restructuring.
No Mention of Legal or Regulatory Risks: The report does not highlight any ongoing legal disputes, regulatory challenges, or macroeconomic threats.

Conclusion and Investment Recommendations

Overall Assessment: Accrelist Ltd’s FY2025 performance was weak, with deepening losses, declining revenue, significant impairment charges, and negative operating cash flows. The lack of dividend payout and the absence of clear forward-looking commentary further dampen the near-term outlook. The company is in a period of transition, highlighted by the disposal of a subsidiary and substantial restatements arising from the audit process.

For Current Shareholders:

Recommendation: Exercise caution. Existing holders should closely monitor management’s next moves, especially regarding future asset impairments, restructuring progress, and any improvement in operational cash flow. Consider reducing exposure if no turnaround plan is articulated in upcoming communications.

For Potential Investors (Non-Holders):

Recommendation: Hold off on initiating a position until there are clear signs of operational recovery, improved profitability, and stronger cash flow generation. Wait for more stable performance and transparent guidance from management.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a professional advisor before making investment decisions.