Financial Analysis of Sheffield Green Ltd by UOB Kay Hian – December 12, 2024

Introduction to Sheffield Green Ltd

In the ever-evolving landscape of renewable energy, Sheffield Green Ltd stands out as a pivotal player. Headquartered in Singapore, this company specializes in global recruitment, focusing on staffing needs within the renewable energy industry. At a share price of S\$0.194 and a market cap of S\$36.1 million (US\$26.9 million), Sheffield Green is making significant strides in workforce development across Asia-Pacific.

Stock Data and Major Shareholders

The company operates within the Industrials sector and is listed under the Bloomberg ticker SHEFG SP. With 186.3 million shares issued, its 52-week high and low are S\$0.235 and S\$0.173, respectively. Major shareholders include Sheffield Energie with 73.4% and Wee Choo Chua holding 5.4%.

Building the Workforce for Renewable Energy

During a visit to Sheffield Green’s state-of-the-art training center in Chiayi, Taiwan, it was evident that the company is committed to addressing the labor needs of Taiwan’s burgeoning offshore wind sector. The center offers Global Wind Organisation (GWO)-accredited programs utilizing advanced tools like VR-based training. This initiative not only supports Taiwan’s renewable energy goals but also reinforces Sheffield Green’s leadership in workforce development across Asia-Pacific.

HR Solutions for the Renewable Energy Sector

Sheffield Green provides comprehensive HR services, from staffing C-suite executives to offshore crews, alongside ancillary services like visa processing, training, and logistics. As a trusted partner in renewable energy projects, the company is well-positioned to capitalize on the sector’s growth, which is projected to see the offshore wind market expand from US\$46.6 billion in 2024 to US\$325 billion by 2034.

Global Expansion and Strategic Moves

Sheffield Green is aggressively expanding its presence in key markets such as Taiwan, Poland, South Korea, the US, and Japan. The launch of its training center in Chiayi is a strategic move to tackle the skilled labor shortage in the offshore wind sector. The company has also signed an MOU to acquire a training facility in Gran Canaria, Spain, to support Europe’s offshore wind industry, projected to reach US\$325 billion by 2034.

Resilient Financial Performance

Despite a 62.2% rise in expenses due to one-off listing costs and higher headcount, Sheffield Green maintained a gross margin of 29.5% in FY24. The adjusted net profit was lower year-on-year at US\$1.08 million, but the company recorded positive cash flows of US\$2.1 million and a strong net cash position of US\$5.8 million.

Key Financials and Metrics

Analyzing Sheffield Green’s financials from 2020 to 2024 reveals significant growth and strategic financial management. The net turnover increased from US\$2.5 million in 2020 to US\$17.3 million in 2024. While EBITDA fluctuated, the company achieved an EBITDA of US\$1.2 million in 2024. Despite challenges, Sheffield Green’s strategic initiatives and financial resilience highlight its potential in the renewable energy sector.

Conclusion

Sheffield Green Ltd is well-poised to harness the opportunities within the renewable energy industry. With strategic expansions and robust financial management, the company is set to play a crucial role in developing the skilled workforce necessary for the sector’s rapid growth. As the demand for renewable energy increases globally, Sheffield Green’s initiatives and strategic moves make it a company to watch in the coming years.