Autagco Ltd. FY2025 Financial Review: Navigating Transformational Change

Autagco Ltd., a Singapore-listed company, released its condensed interim financial statements for the six months and full year ended 31 July 2025. The Group underwent significant operational changes in FY2025, including a strategic exit from its food & beverage (F&B) business and expansion into assisted living services. This analysis summarizes key financial metrics, performance trends, notable corporate actions, and provides an outlook for investors based strictly on the disclosures in the financial report.

Key Financial Metrics

Historical Performance Trends

• Revenue: Full-year revenue increased 6% YoY to S\$1.42 million, primarily due to the new assisted living business, which contributed S\$0.26 million. However, F&B revenue fell 13% YoY due to outlet closures.
• Net Loss: The Group’s net loss narrowed significantly, from S\$3.20 million in FY2024 to S\$1.32 million in FY2025, driven by the wind-down of loss-making F&B operations and absence of large goodwill and PPE impairments recorded in the prior year.
• EPS: Loss per share improved, but remains negative. Net asset value per share is also negative, reflecting the Group’s deficit position.

Exceptional Earnings and Expenses

• Goodwill and PPE Impairment: FY2024 saw significant impairment of goodwill (S\$1.28 million) and property, plant, and equipment (S\$0.52 million). FY2025 impairments were much lower (goodwill: S\$0.02 million; PPE: none).
• Waiver of Payables: S\$0.23 million was waived in FY2025 relating to prior acquisition liabilities, boosting other operating income.
• Reversal of Impairments: S\$0.06 million reversal on previously impaired PPE in FY2025.

Corporate Actions and Fundraising

• Share Issuance: 166.67 million shares were issued at S\$0.003 each, raising S\$0.5 million in new capital.
• Loans and Convertible Loan: Raised S\$0.5 million via a convertible loan (option to convert into shares), and S\$0.2 million in term loans from third-party investors. Additional loan facilities of up to S\$1.75 million are available from the controlling shareholder, with S\$1.3 million yet to be drawn.
• Voluntary Liquidation: The Group exited its F&B business by liquidating its subsidiaries Superfood Kitchen Pte. Ltd. (SFK) and The Green Bar Pte. Ltd. (TGB) after closure of their last outlets.
• Asset Acquisition: Acquired the assisted living business and assets of Crescendo Wellness Living for S\$50,000, recognized as an asset acquisition rather than a business combination.

Related-Party Transactions

• Loans from the controlling shareholder Aurico Global Holdings Pte. Ltd. are disclosed, with extended maturity dates and ongoing financial support commitments.
• Directors and executives have agreed to defer payment of salaries totaling S\$0.65 million for the next year, supporting the Group’s liquidity.

Management & Remuneration

• Key Executive Appointment: Ho Poh Khum, spouse of Executive Chairman and CEO Mr. Ng Boon Hui, appointed Chief Operating Officer in August 2024.
• Salary Deferral: Certain directors and executives have agreed not to demand salary payments amounting to S\$652,194 for the periods from December 2024 to November 2026.

Chairman’s Statement

By Order of the Board
Autagco Ltd.
Ng Boon Hui
Executive Chairman and Chief Executive Officer
29 September 2025

Tone: The statement is neutral in tone and limited to a standard corporate sign-off, without forward-looking commentary or guidance.

Events Impacting Business and Outlook

• Strategic Pivot: The Group has exited its legacy F&B business, with all outlets closed and subsidiaries under liquidation. This removes a major loss-making component from the Group.
• Assisted Living Expansion: The new assisted living segment is expected to benefit from demographic trends in Singapore, where 1 in 4 citizens will be over 65 by 2030. Government policy is supportive, but market acceptance and affordability remain challenges.
• Financial Position: The Group remains in a net capital deficit and current liabilities exceed assets, but management expects continued financial support from its controlling shareholder and further fundraising.
• Dormant Advisory Business: The Australian financial advisory subsidiary is inactive and slated for deregistration.

Conclusion & Recommendations

Overall Financial Performance & Outlook:
Autagco’s financial performance in FY2025 improved substantially, with net losses narrowing and loss-making F&B operations wound down. The strategic pivot to assisted living positions the Group in a sector with long-term growth potential, but the transition remains new and unproven. Liquidity is tight, with net operating cash outflow and a deficit equity position, but the Group is supported by shareholder loans and director salary deferrals.

Recommendations for Investors

• If currently holding the stock: Investors may consider holding while monitoring execution in the assisted living business and the Group’s ability to restore profitability and improve its balance sheet. The company is still in a turnaround phase, and future fundraising or dilution remains possible.
• If not currently holding the stock: Prospective investors should be cautious and consider waiting until there is clearer evidence of sustainable earnings from the assisted living segment and improvement in capital structure. The Group’s negative equity, lack of dividends, and reliance on external support signal elevated risk.

Disclaimer: This analysis is based solely on the information disclosed in the company’s financial report. It does not constitute investment advice. Please consult with a licensed financial advisor before making investment decisions, as all investments carry risks including loss of principal.

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