Wilton Resources Corporation Limited: FY2024 Financial Analysis and Audit Variance Review
Wilton Resources Corporation Limited (the “Company”), together with its subsidiaries (the “Group”), recently published its audited financial statements for the year ended 31 December 2024. This article reviews the key financial metrics, highlights material adjustments between audited and unaudited figures, and provides a professional perspective for investors assessing Wilton Resources’ investment merits.
Key Financial Metrics
The audited results for FY2024 reveal notable variances from previously published unaudited numbers, driven mainly by audit adjustments related to project financing, expense recognition, and asset reclassifications.
| Metric |
Audited FY2024
(Rp million) |
Unaudited FY2024
(Rp million) |
Variance
(Rp million) |
| Other Income |
24 |
12,845 |
(12,821) |
| Other Expenses |
(119,293) |
(28,637) |
(90,656) |
| Other Operating Expenses |
(40,960) |
(27,174) |
(13,786) |
| Finance Costs |
(46,107) |
(31,143) |
(14,964) |
| Income Tax Expense |
(7,160) |
(4,793) |
(2,367) |
| Accumulated Losses (Group) |
(1,682,893) |
(1,573,308) |
(109,585) |
Loans and Borrowings
(Current – Group) |
480,830 |
359,559 |
121,271 |
Note: No explicit data for revenue, profit before tax, or EPS was disclosed; instead, adjustments focused on income/expense line items and balance sheet positions.
Summary of Material Variances & Audit Adjustments
- Other Income: Significant downward adjustment due to reversal of overstated management income and unrealized foreign exchange gains.
- Other Expenses: Sharp increase due to recognition of a loss from the modification of the Project Financing Liability after the company failed to repay US\$21 million by February 2025.
- Other Operating Expenses: Increased due to higher abnormal production costs and net forex losses. Certain operational expenditures could not be capitalized as inventory.
- Finance Costs: Upward revision owing to additional interest from a working capital loan taken by subsidiary PT. Wilton Wahana Indonesia.
- Loans and Borrowings: Reclassification and net increase following recognition of additional liabilities from the financing modification; liabilities previously classified as non-current were reclassified as current.
- Inventories, Property, Plant & Equipment: Decreases reflect stricter capitalisation criteria and reclassification of costs as expenses.
Exceptionals, Errors, and Accounting Adjustments
- Project Financing Liability: Loss recognized due to substantial modification of loan terms, as the group was unable to meet repayment obligations on a significant project finance facility. This resulted in a large one-off expense in the audited accounts.
- Expense Recognition: Operational expenditures not qualifying for capitalization were expensed, increasing reported losses.
- Reclassification of Liabilities: Borrowings previously reported as non-current were moved to current, highlighting potential liquidity or refinancing risks.
- Non-controlling Interest: Increase resulting from the disposal of interest in PT Wilton Makmur Indonesia (subsidiary).
Cash Flow Statement Adjustments
- Cash flows from operating activities reflect increased losses before tax, higher finance costs, and large non-cash adjustments due to project financing liabilities.
- Investing outflows were reduced, as less was capitalized as property, plant, and equipment.
- Financing inflows were reclassified, providing clearer differentiation by instrument (e.g., working capital loans, overdrafts).
Other Notable Events
- Related-Party Transactions: Additional advances were received from a director for working capital purposes.
- Divestment: Increase in non-controlling interest due to partial disposal of a subsidiary.
Chairman’s Statement
“Shareholders and potential investors of the Company are advised to read this announcement in conjunction with the Independent Auditor’s Report and the Audited Financial Statements which will form part of the 2024 Annual Report, which is released separately on the SGXNet.
Shareholders and potential investors of the Company are advised to exercise caution when dealing in the securities of the Company and are advised to read this announcement and any further announcements by the Company carefully. When in doubt, shareholders and potential investors of the Company are advised to seek independent advice from their professional advisors before trading or making any investment decision in the Company’s securities.”
— Wijaya Lawrence, Executive Chairman and President
Tone: The Chairman’s statement is cautious and defensive, urging shareholders to exercise care given the significant restatements and audit adjustments.
Conclusion & Investment Recommendations
Overall Performance & Outlook: The financial performance for FY2024 appears weak, with significant increases in losses, large audit adjustments, higher finance costs, and shifting of borrowings to current liabilities. The company faces liquidity and refinancing risks, as demonstrated by its inability to meet project financing obligations and the need for related-party advances.
- If You Currently Hold the Stock: Consider reducing or reviewing your position. The company’s financials have deteriorated, and the reclassification of debt to current liabilities signals potential liquidity pressure. Unless the company discloses a credible turnaround plan, risk remains elevated for existing shareholders.
- If You Do Not Hold the Stock: Exercise caution before initiating a new position. Wait for further clarity on the company’s refinancing efforts, operational improvements, or any material positive developments. The risk/reward profile appears unfavorable at present.
Disclaimer: This analysis is based strictly on information disclosed in the company’s audited FY2024 financial statements and related announcement. It does not constitute financial advice. Investors should consult their own professional advisor and consider their own financial situation and risk tolerance before making investment decisions.
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