Legion Consortium Limited Issues Profit Warning for FY2025

Key Highlights from the Profit Warning Announcement

• Significant Financial Downturn Expected:
  Legion Consortium Limited has announced that, based on a preliminary review of its unaudited consolidated management accounts for the financial year ended 31 December 2025 (FY2025), the Group is expected to record a loss before tax of not less than S\$5.1 million. This represents a sharp reversal compared to a profit before tax of approximately S\$5.9 million in the previous financial year ended 31 December 2024 (FY2024).
• Key Drivers of the Expected Loss:
  • Decline in Revenue: Revenue is expected to decrease from approximately S\$66.1 million in FY2024 to approximately S\$61.2 million in FY2025. This drop is mainly due to a decline in market demand, which led to a significant reduction in sales volume across the Group’s core trucking and freight forwarding services.
  • Increase in Operational Costs: The Group faced higher maintenance and logistics-related expenses, which compressed profit margins and negatively impacted overall profitability.
  • Reduction in Other Income: Other income was down, notably due to lower fixed deposit interest income and the impact of foreign exchange fluctuations.
  • Rising Operating Expenses: Operating expenses increased, driven by additional professional fees, higher bank charges, and other administrative costs.
  • Recognition of Impairment Losses: The Group expects to recognize impairment losses on intangible assets and trade receivables.

Important Information for Shareholders and Investors

• Potential Share Price Impact: The anticipated loss for FY2025, a dramatic turnaround from the previous year’s profit, is a significant, potentially price-sensitive development. Investors should be aware that this deterioration in financial performance could negatively affect market confidence and the share price.
• Preliminary Nature of Results: The figures provided are based on preliminary, unaudited management accounts. The final audited results for FY2025 may differ, and are expected to be published by the end of March 2026.
• Ongoing Finalisation: The Company is still in the process of finalising its consolidated annual financial results. Shareholders are advised to exercise caution when dealing in the shares of the Company until the official audited results are released.

Board Composition

As at the date of the announcement, the Board of Legion Consortium Limited comprises:

• Three executive Directors: Mr. Ng Choon Eng (Chairman, CEO, and Executive Director), Mr. Ng Kong Hock, and Ms. Tham Chia Sze
• Three independent non-executive Directors: Mr. Ho Wing Sum, Mr. Yeo Teck Chuan, and Mr. Teo Rainer Jia Kai

Conclusion

The expected swing to a loss in FY2025 is a material and potentially price-moving development for Legion Consortium Limited. The combination of decreased revenue, higher costs, reduced other income, increased operating expenses, and impairment losses has significantly altered the Group’s financial outlook. Investors should stay alert for the final audited results and exercise caution with any investment decisions until more definitive financial information is available.

Disclaimer: This article is based on information contained in the Company’s announcement and is intended for informational purposes only. It does not constitute investment advice. Investors should conduct their own research and consult professional advisers before making investment decisions. The information is subject to change once the audited financial statements are released.

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