Financials

CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2025

Financials Archive

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Condensed Interim Consolidated Statement Of Comprehensive Income

Condensed Interim Statements Of Financial Position

Review Of The Performance

Financial Performance of the Group (1H2025 vs 1H2024)

Revenue

Electrical and Technical Supply

For 1H2025, revenue from the Electrical and Technical Supply Division decreased by $3.3 million as compared to 1H2024 mainly due to lesser revenue from shipyards.

Security

The lower revenue is mainly due to liquidation of OMS.

Integration Engineering

The decrease in revenue for the Integration Engineering Division by $1.6 million is attributed to decrease in recognition of project revenue.

Gross profit

The Group's overall gross profit decreased from $11.8 million in 1H2024 to $9.5million in 1H2025. This is mainly due to decrease in revenue. The Group's gross margin remained relatively comparable, decreasing marginally from 40% in 1H2024 to 39% in 1H2025.

Gain on deconsolidation of subsidiaries

During the period, the Group recorded a gain of $1.2 million arising from the deconsolidation of OMS and SASA APAC Pte. Ltd. amounting to $1.1 million and $0.1 million respectively.

Other operating income

The Group recorded a loss in foreign exchange of $0.2 million in 1H2025 as compared to a gain of $0.3 million in 1H2024 mainly due to weaker USD.

Operating expenses

Selling & Distribution expenses decreased by $0.3 million from $7.5 million in 1H2024 to $7.2mil in 1H2025. The variance was mainly attributable to the following:

- Decrease in travelling, entertainment and advertising expenses mainly due to closure of Omnisense Systems USA, Inc of $0.2 million

Both administrative expenses and finance cost remain comparatively unchanged.

Share of results of joint ventures

The decrease in share of profits of a joint venture was due to lower profits recorded by the Group's joint venture for 1H2025.

Share of results of associated companies

The Group's associated companies are namely GL Lighting Holding Pte. Ltd. ("GLH") and BOS Marine & Offshore Engineering Corporation ("BOSMEC"). During the period, the Group shared a gain of $0.1 million from BOSMEC. This gain is offset by the Group's share of loss of $0.3 million from GLH, resulting in a net loss of $0.2 million in 1H2025.

Net loss for the period

The Group registered a net loss of $0.4 million mainly due to lesser revenue offset by a gain on deconsolidation of subsidiaries.

Financial Position of the Group

Inventories

Inventories increased by $1.2 million from $33.3 million as at FY2024 to $34.4 million as at 1H2025. This is mainly due to increase in Electrical and Technical Supply division of $1.9 million and offset by the decrease in Integrated Engineering amounting to $0.7 million.

Trade receivables

Trade receivables decreased by $0.5 million from $12.4 million as at FY2024 to $11.9 million as at 1H2025. This is mainly due to decrease in Electrical and Technical Supply by $1.4 million and offset by the increase in Integration Engineering and Security division by $0.9 million.

Contract assets

Contract assets decreased by $1.3 million from $2.2 million as at FY2024 to $0.9 million as at 1H2025. This is mainly due to Integrated Engineering and Security Division amounting to $0.8 million and $0.5 million respectively. The main reason for their decrease is due to project completion leading to contract asset being billed and recognised as revenue.

Trade payables

Trade payables increased by $1.5 million from $5.5 million as at FY2024 to $7 million as at 1H2025. This is mainly due to increase in Electrical and Technical Supply by $1.6 million.

Borrowings

Total bank borrowings (current and non-current) remain comparably unchanged.

Capital Reserves

Capital reserves increased by $1.4 million from $1.2 million as at FY2024 to $3.6 million as at 1H2025. This is mainly due to the excess of consideration paid over assets and business acquired by ITS from OMS of $3.7 million, offset by a transfer of an existing capital reserve of $1.3 million to accumulated loss as a result of liquation of OMS.

Cash flow review

Cash generated from operating activities in 1H2025 was $0.3 million as compared to net cash used in operating activities of $1.9 million in 1H2024 mainly due to decrease in contract assets and increase in payables offset by increase in inventories.

The net cash flows used in investing activities in 1H2025 was $0.3 million, mainly due to decrease in development costs.

The Group registered a net cash used in financing activities of $2.2 million in 1H2025 as compared to net cash from financing activities of $0.3 million in 1H2024 mainly due to lower drawdown of short-term borrowings.

Commentary

Outlook

Industry Trends and Competitive Conditions

The global maritime and offshore engineering sectors are navigating a complex mix of trade disruptions, environmental mandates, digitalization transformation, and labour pressures. Despite these challenges, the Group remains resilient and well-positioned for growth through targeted investments in green technologies, digital platforms, and technical marine services.

Singapore continues to strengthen its position as a maritime innovation and sustainability hub, supported by forward-looking policies and infrastructure. Strong offshore energy demand is expected to continue into 2025, particularly in the offshore O&G and renewables segments. With major yards in China and Korea operating at full capacity, Singapore has regained relevance in niche shipbuilding, conversion, and high-value retrofits.

Geopolitical and Economic Landscape

Persistent global tensions-including Red Sea disruptions, US-China decoupling trends, and the ongoing Russia-Ukraine conflict-have caused widespread changes in shipping routes and freight costs. In addition, rising tariffs have further increased cross-border costs and market uncertainties. These developments have added pressure on global supply chains.

Nevertheless, the ASEAN region continues to see progressive infrastructure development, especially in renewable energy and port expansions. Increased reliance on regional marine suppliers presents new opportunities for the Group's marine electrical, lighting, and technical solutions.

Digital Transformation in Maritime Operations

The maritime sector is undergoing accelerated digital adoption, including AI-driven logistics, eprocurement, autonomous operations, and cybersecurity compliance mandated by the International Maritime Organization (IMO).

The Group's Cyber Security Division continues to grow, delivering operational technology (OT) protection, risk assessments, and IMO compliance solutions for vessel operators. These digital offerings are gaining traction, particularly as shipowners demand faster, safer, and more transparent supply chains.

Sustainability and Decarbonization Efforts

The IMO's decarbonization measures and the EU Emissions Trading Scheme (ETS) have accelerated fleet retrofitting and the transition to green fuels. Locally, the Maritime and Port Authority of Singapore (MPA) continues to support the electrification of harbour crafts and the trial of alternative fuelled vessels.

The Group is positioned to support this transition through its expertise in vessel electrification and energy storage systems, LED lighting and energy-efficiency retrofits, Digital power management systems, and Green marine piping solutions. By aligning with Singapore's maritime decarbonization blueprint, the Group is able to offer turnkey green solutions to the Maritime industry.

Workforce Development and Technological Integration

Singapore's maritime industry faces structural labour shortages, particularly in technical and sustainability-focused roles. The Sea Transport ITM has been refreshed to emphasize mid-career mobility, vocational training, and digital fluency. In response, the Group continues to invest in automation and lean engineering processes to help offset manpower challenges. In parallel, the Group provides training programs in green technology, cybersecurity, and smart engineering to futureproof its workforce and enhance long-term competitiveness.

The Group is focused on sustaining growth through the expansion of green maritime technologies to meet evolving regulatory and customer demands, the continued development of digital platforms and cybersecurity offerings in line with IMO and port requirements, and the scaling of marine engineering and retrofit capabilities. These strategic directions position the Group to play a leading role in Singapore's maritime transformation. The Group will remain vigilant and competitive to tackle the ever-changing maritime landscape, ensuring our long-term relevance and resilience amid continued industry transformation.