Shanaya Limited FY2025 Financial Results: Turnaround and Strategic Expansion

Shanaya Limited, a Singapore-based waste management and disposal services provider, has released its unaudited condensed interim financial statements for the second half and full year ended 31 December 2025. This analysis covers the company’s key financial metrics, performance trends, exceptional items, strategic developments, and offers an investor outlook based strictly on the disclosed figures.

Key Financial Metrics and Performance Summary

Historical Performance and Trends

• The company returned to profitability in FY2025 (net profit of \$7,000) after a loss of \$1.22 million in FY2024, largely due to exceptional items and cost controls.
• Revenue grew by 3% year-over-year, with stronger performance in 2H FY2025 (+6% vs 2H FY2024), driven by higher waste collection/disposal for cruise and cargo ships.
• Other income surged, primarily due to a \$1.05 million gain from the disposal of a leasehold property and a \$0.18 million gain from forfeiture of a deposit on a terminated share subscription.
• Cost controls and lower finance costs contributed to the turnaround, with finance costs falling 21% YoY due to loan repayments and lower interest rates.
• No dividends were declared for FY2025 or FY2024, reflecting a cautious approach despite the return to profitability.

Exceptional Earnings and One-offs

• Exceptional gains in FY2025 included:
  • \$1.05 million gain from the sale of a leasehold property at 27 Kian Teck Drive.
  • \$0.18 million net gain from the forfeiture of a deposit related to a terminated subscription agreement.
• These exceptional items had a material impact on overall profitability for FY2025.

Strategic Developments and Corporate Actions

• Asset Sale: The group disposed of a major leasehold property, realizing a \$1.05 million net gain.
• Expansion Moves:
  • Upgraded General Waste Disposal Facility license to handle up to 371 tons per day and applied for additional toxic waste handling capacity.
  • Signed binding agreements for acquisitions:
    • 60% stake in KJ Engineering Pte Ltd (completion extended to April 2026).
    • 60% stake in Hup Lee Leong Enviro Pte Ltd (to be settled partly in cash and partly via new share issuance).
• Share Awards: 3.84 million shares granted to directors and employees under a performance share plan.
• No Dividends: No dividend payouts, reflecting a conservative capital management stance.

Cash Flow and Balance Sheet Review

• Net cash generated from operating activities: \$760,000 (down from \$1.22 million in FY2024).
• Net cash from investing activities: \$3.03 million (mainly from asset sale), partially offset by \$1.03 million in PPE purchases.
• Net cash used in financing activities: \$3.74 million, primarily for repayment of loans and leases.
• Cash and cash equivalents ended the year at \$1.50 million, up slightly from \$1.45 million in FY2024.
• Current and non-current liabilities both decreased, mainly due to loan repayments and reclassifications following the asset sale.

Management Outlook and Chairman’s Statement

“In facing such challenges, the Group shall do more in land-based waste management. In this regard, the Company’s wholly-owned subsidiary, Shanaya Environmental Services Pte Ltd (“SES”), had, on 13 November 2025, successfully upgraded its General Waste Disposal Facility (GWDF) license… Moreover, SES had recently applied to NEA to obtain license to collect, treat and dispose of certain toxic industrial waste… In addition, the Group shall continue to pursue the path of widening and deepening its market reach in the Singapore land-based waste management business while seeking to strengthen its core business of supporting the waste management needs of ships. With the recently announced plans underway to acquire 60% stake in KJ Engineering Pte Ltd (“KJE”) and Hup Lee Leong Enviro Pte Ltd (“HLL”), respectively, the Board believes that the acquisitions will position the Group strategically to grow its local waste management business on several fronts…”

The tone is cautiously optimistic, focusing on strategic expansion and risk management amid unpredictable macroeconomic conditions.

Conclusion and Investor Recommendations

Summary: Shanaya Limited executed a credible turnaround in FY2025, returning to marginal profitability after a significant loss in FY2024. The improvement was driven by asset sales and exceptional gains, while core operations remained stable with modest revenue growth. The company is strategically expanding its land-based waste management business and diversifying revenue streams through acquisitions and licensing upgrades. Balance sheet strength improved modestly, and the group is retaining cash to support ongoing expansion.

Investor Recommendations

• If you are currently holding the stock:
  Consider holding your position. The company has returned to profitability, is actively expanding into new market segments, and maintains conservative capital management (no dividend payouts). However, note that much of FY2025’s profit was non-recurring. Monitor execution of planned acquisitions and core profitability in upcoming quarters.
• If you are not currently holding the stock:
  Adopt a wait-and-see approach. While the turnaround and strategic initiatives are positive, the current valuation is supported largely by one-off gains and not strong recurring earnings. Entry may be more attractive once consistent core profit growth is demonstrated post-acquisitions.

Disclaimer: This analysis is based solely on information contained in the FY2025 interim financial report of Shanaya Limited. It 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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