DEAR SHAREHOLDERS

On behalf of the Board of Directors, we are pleased to report another profitable year for the financial year ended 31 March 2025 (“FY2025”), despite the headwinds encountered across our key business segments. In the last quarter of financial year, the global economic landscape experienced yet another shock—owing to the series of new tariff measures by the United States and countermeasures by its trading partners—which had unfolded into a negative impact on economic activity. While the Group remained steadfast in our strategic repositioning of the business towards our Fire Protection Solutions Division to strengthen and expand this segment and capture any growth opportunities, our efforts were inevitably dampened by the dynamic market environment

BUSINESS AND FINANCIAL REVIEW

Group revenue decreased slightly in FY2025 by 3.4% to S$43.4 million, against S$45.0 million in the previous financial year ended 31 March 2024 (“FY2024”). The dip was due to a decrease in revenue of the Fire Protection Solutions Division resulting from a reduction of new projects in the market during the last quarter of the current financial year, with the looming uncertainty over the then impending announcement of US President Donald Trump’s tariff measures. Meanwhile, revenue from the Energy Services Division also experienced a minor decline, as customers opted for more competitive electrical plans with lower tariff rates.

Cost of sales correspondingly decreased in line with lower revenue, and gross margin improved year-on-year, driven by the completion of higher-margin projects in the Fire Protection Solutions Division during the final quarter of FY2025. This was in contrast to the Energy Services Division, which generated lower margin contributions.

The Group recorded a profit after tax of S$1.9 million in FY2025, representing a 38.8% improvement over the S$1.4 million recorded in FY2024

FOCUSING ON OUR STRENGTHS

Going forward, the Group will explore new growth opportunities in the fire ighting related business as we anticipate a reduction of revenue due to the shortening of the PPA mentioned above.

One such opportunity is to expand into the technical aspect of the marine industry by creating a manufacturing department for our fire-fighting products. With this new engine of growth, we can leverage on our established expertise and experience to strengthen our foundations and industry position.

The Group will stay agile during this uncertain time environment so as to be able to swiftly realign the Group to benefit from these new opportunities.

OUTLOOK

Looking ahead, the swift escalation of trade tensions and extremely high levels of policy uncertainty are expected to have a significant impact on global economic activity.

The World Monetary Fund’s April 2025 World Economic Outlook Update states that global trade growth is expected to slow down in 2025 to 1.7 percentage point, a downward revision of 1.6 percentage point since the previous update of 3.3%, and is a reflection of the adverse effects of the tariff restrictions affecting trade flows.

While the Fire Protection Solutions division remains stable at present, the Group will continue to explore new initiatives to broaden our Fire Protection Solutions customers’ base, services and products. On the other hand, the Energy Solutions division is expected to be challenging due to an increasing trend of customer varying its mix in service rendered. 

In view of geopolitical uncertainties, the Group will continue to be vigilant to proactively manage and assess the potential impact to its business and will also continue to monitor its cash flow and implement strategies to minimize any potential impact on liquidity where necessary.

ACKNOWLEDGEMENTS

We would like to express our sincere gratitude to our shareholders, business partners, management team and all our employees, for their trust, support and dedication through these years. We remain committed to building resilience, strengthening the Group for a safer and sustainable growth and future.

Thank you.

CHIA SOON HIN WILLIAM