Far East Orchard Subsidiary Faces GBP4.74 Million Cyber-Fraud Related Legal Threat

Key Developments That Could Impact Shareholders and Share Price

Summary of Announcement

Far East Orchard Limited (“the Company”) has announced that its wholly-owned subsidiary, Homes for Students Limited (HFS), a UK-based operator of purpose-built student accommodation, has received a Letter Before Action dated 13 February 2026 from an existing client. This letter is a formal warning typically sent before legal proceedings are initiated.

Details of the Incident

• Nature of Incident: The client alleges that they were the victim of a cyber-fraud incident. The client claims that HFS should pay approximately GBP4.74 million (around S\$8.1 million at current exchange rates) in relation to this incident.
• Current Status: No formal lawsuit has been filed yet. The claim remains at the pre-action stage, but the client has threatened legal proceedings if the matter is not resolved.
• Legal Advice: Preliminary external legal advice indicates that HFS has grounds to successfully defend the allegations. HFS intends to vigorously defend itself against both the current allegations and any future legal action.
• Potential Financial Impact: If the client takes formal legal action and succeeds in their claim, the full claim amount would negatively affect the profitability of the Group. This could have a material impact on the Company’s financial statements and, by extension, its share price.

Important Information for Shareholders

• IT Systems Not Compromised: The Company assures shareholders that the Group’s (including HFS’s) IT systems and networks are completely independent from the client’s systems and have not been affected by the cyber-fraud incident. The incident pertains solely to the client.
• Business Continuity: HFS’s business operations remain unaffected, and it continues to provide services to the client as usual.
• Internal Controls: The Company maintains that its internal controls and risk management systems remain adequate and effective.
• Ongoing Monitoring: Shareholders are advised that the Board will continue to monitor the situation and will make further announcements as appropriate, in compliance with the Singapore Exchange’s Listing Rules.

Potential Share Price Sensitivity

The possibility of a GBP4.74 million payout represents a significant contingent liability for Far East Orchard. If legal action is commenced and the client is successful, this could have an adverse effect on the Group’s profitability and financial position, which may impact the share price. Conversely, the company’s view—supported by legal advice—is that it has grounds to defend itself, and operations remain unaffected.

Guidance for Investors

Investors and shareholders are strongly advised to exercise caution when dealing in Far East Orchard’s shares. The situation is dynamic, and further updates will be provided by the Company. It is prudent for investors to stay informed and consult with their professional advisors if uncertain about any investment decisions.

By Order of the Board
Phua Siyu Audrey
Company Secretary
27 February 2026

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult their stock brokers, bank managers, solicitors, or other professional advisors before making any investment decisions. The situation described is still evolving and may have material impacts on the company and its share price.

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