Profit or Loss

Balance Sheet

Review of Performance

A. Consolidated Statement of Comprehensive Income (FY2026 vs FY2025)

1. Revenue:
   

   Total revenue increased by S$10.36 million or 36.9% from S$28.04 million in FY2025 to S$38.40 million in FY2026, with revenue growth recorded across all four business segments.

   Revenue from engineering services increased by S$4.55 million or 57.6% from S$7.89 million in FY2025 to S$12.44 million in FY2026, mainly due to a higher volume of projects secured and completed during the year. Revenue from property investment increased by S$2.01 million or 133.0% from S$1.50 million in FY2025 to S$3.51 million in FY2026, following improved occupancy and full-year contributions from both dormitory properties with commencement of rental income from the newly operated dormitory in FY2026. Revenue from security and manpower services increased by S$2.04 million or 15.6% from S$13.10 million in FY2025 to S$15.14 million in FY2026, mainly contributed by higher revenue from manpower outsourcing and cleaning services for new contract wins and expanded project requirements from existing customers, which was partially offset by a decline in security services. Revenue from transport services increased by S$1.76 million or 31.8% from S$5.55 million in FY2025 to S$7.31 million in FY2026, as a result of increased transportation demand and improved fleet utilisation.

2. Cost of Sales:
   

   Cost of sales increased by S$6.44 million or 26.4% from S$24.39 million in FY2025 to S$30.83 million in FY2026, in line with the higher revenue across all segments.

3. Gross Profit:
   

   Gross profit increased by $3.91 million or 107.3% from $3.65 million in FY2025 to $7.56 million in FY2026. Overall gross profit margin increased from 13.0% to 19.7% in FY2026 mainly due to improved profitability in engineering projects, better utilisation of the Group's assets, turnaround of the investment properties segment from gross loss in FY2025 to a gross profit in FY2026 due to improved occupancy and full-year contributions and improved margins in security & manpower services, particularly manpower outsourcing and cleaning services

4. Other Income:
   

   Other income decreased by S$0.29 million or 54.4% from S$0.54 million in FY2025 to S$0.25 million in FY2026, mainly due to lower government grants received in FY2026.

5. Administrative Expenses:
   

   Administrative expenses increased by S$0.43 million or 11.4% from S$3.75 million in FY2025 to S$4.18 million in FY2026, mainly due to higher staff salaries and wages, increased CPF contributions and foreign worker levies, and higher audit and general administrative expenses, which were in line with the Group’s business expansion. As a proportion of revenue, administrative expenses declined from 13.4% in FY2025 to 10.9% in FY2026.

6. Other Expenses:
   

   Other expenses decreased by S$0.44 million or 63.3% from S$0.69 million in FY2025 to S$0.25 million in FY2026, due to absence of one-off write-downs of inventories and impairment loss on trade receivables in FY2026.

7. Finance Costs:
   

   Finance costs decreased by S$0.07 million or 13.6% from S$0.54 million in FY2025 to S$0.47 million in FY2026, notwithstanding the increase in loans and borrowings during the year. The decrease was mainly due to a downward revision of the interest rates on the Group’s existing facilities, together with a lower average principal outstanding on those facilities following repayments of S$3.34 million made during the year.

8. Tax:
   

   The Group recorded an income tax expense of S$0.53 million in FY2026, compared with S$0.09 million in FY2025, reflecting the Group’s return to profitability. This represents an effective tax rate of 18.1% on profit before tax of S$2.91 million (FY2025: not meaningful, given the loss position).

9. Net Profit after Tax:
   

   The Group achieved a profit after tax of S$2.38 million in FY2026, compared with a loss after tax of S$0.89 million in FY2025, representing a turnaround of S$3.27 million. Basic and diluted earnings per share was 1.89 cents in FY2026, compared with a loss per share of 0.61 cents in FY2025.

B. Consolidated Statement of Financial Position as at 30 June 2026

1. Non-Current Assets:
   

   Non-current assets increased by S$15.54 million or 68.6% to S$38.18 million as at 30 June 2026 from S$22.64 million as at 30 June 2025, mainly due to the acquisition of an investment property, for which S$17.59 million was paid during FY2026.

2. Current Assets:
   

   Current assets increased by S$3.34 million or 34.5% to S$13.02 million as at 30 June 2026 from S$9.68 million as at 30 June 2025, mainly due to an increase in trade and other receivables of S$3.83 million in line with the higher revenue generated in FY2026, partially offset by a decrease in cash and cash equivalents from S$2.01 million to S$1.61 million.

3. Non-Current Liabilities:
   

   Non-current liabilities increased by S$7.68 million or 68.0% to S$18.98 million as at 30 June 2026 from S$11.30 million as at 30 June 2025, mainly due to an increase in non-current loans and borrowings of S$7.44 million.

   The increase in loans and borrowings was due to borrowings drawn down to fund the acquisition of the investment property, with gross drawdowns of S$13.00 million during FY2026 partially offset by repayments of S$3.34 million.

4. Current Liabilities:
   

   Current liabilities increased by S$5.37 million or 54.2% to S$15.27 million as at 30 June 2026 from S$9.90 million as at 30 June 2025, mainly due to an increase in contract liabilities of S$1.21 million, arising from customer deposits reclassified to contract liabilities during FY2026, an increase in trade and other payables in respect of a loan from PTCC Holdings Pte Ltd for capital contribution to a subsidiary and a loan from a non-controlling shareholder of a subsidiary for the acquisition of the investment property, and an increase in the current portion of loans and borrowings of S$2.22 million, which similarly arose from the borrowings drawn down to fund the acquisition of the investment property.

5. Working Capital Position
   

   As at 30 June 2026, the Group has net current liabilities of S$2.25 million, compared with S$0.22 million as at 30 June 2025. The Board has assessed and is of the opinion that the Group is able to continue as a going concern based on the following:

• Cash Flow Forecasts:
  

  Management has prepared detailed cash flow projections for at least the next 12 months from the date of these financial statements, including the proposed interim dividend of 0.57 cents per ordinary share declared in respect of FY2026. These projections indicate that the Group will have adequate cash resources to meet its liabilities as they fall due, supported by ongoing operational cash flows and continued backing from shareholders.

• Operational Outlook:
  

  The Group generated net cash of S$5.61 million from operating activities in FY2026 and expects to continue to generate positive cash flows from operating activities based on existing contracts and anticipated new projects, as well as with the asset enhancement of the investment properties. Combined together, these will further improve the liquidity of the Group.

• Continued Financial Support:
  

  The Group has received letters of financial support from its immediate and ultimate holding company, confirming their intention not to demand repayment of existing balances and to provide financial assistance, if necessary, to enable the Group to meet its obligations as and when they fall due for a period of at least 12 months from the date of approval of the financial statements.

• Interest-Free, Unsecured Loans:
  

  The Group has received interest-free and unsecured loans from both the holding company and non-controlling shareholder, which have no fixed repayment terms. These funding arrangements provide flexibility and ease short-term liquidity pressures.

C. Consolidated Statement of Cash Flows (FY2026)

1. Net cash from operating activities in FY2026 amounted to S$5.61 million, comprising operating cash flow before working capital changes of S$6.52 million, partially offset by a net working capital outflow of S$0.89 million. The working capital outflow arose mainly from the increase in trade and other receivables of S$3.83 million in line with the higher revenue, partially offset by the increase in trade and other payables of S$1.65 million and the increase in contract liabilities of S$1.21 million.

2. Net cash used in investing activities in FY2026 amounted to S$18.43 million, mainly due to the acquisition of the investment property of S$17.59 million.

3. Net cash from financing activities in FY2026 amounted to S$12.43 million, mainly comprising gross drawdowns of loans and borrowings of S$13.00 million and proceeds of S$3.45 million from a non-controlling shareholder of a subsidiary, partially offset by repayment of loans and borrowings of S$3.34 million, interest paid of S$0.45 million and payment of lease liabilities of S$0.31 million.

   Taken together, the above resulted in a net decrease in cash and cash equivalents of S$0.4 million, from S$2.01 million as at 30 June 2025 to S$1.61 million as at 30 June 2026

Commentary

The Group’s Engineering services division is looking to tap on the improved industry fundamentals. The Building and Construction Authority (BCA) has reaffirmed its projection that Singapore’s total construction demand will range between S$47 billion and S$53 billion in 2026.¹ Construction demand reached S$50.5 billion in 2025. This sustained demand in 2026 was driven by several largescale development projects such as Changi Airport Terminal 5 (T5) and the Marina Bay Sands Integrated Resort expansion. Looking further ahead, BCA expects annual construction demand to remain resilient at an average of S$39 billion to S$46 billion per year from 2027 through 2030. These positive industry forecasts underpin a healthy pipeline of opportunities for our Engineering business. Against this backdrop, and building on the improved profitability achieved on our engineering projects in FY2026, the Group is well positioned to capture new opportunities. We will continue to target projects where we have competitive strengths and to prioritise margin quality over volume, while remaining mindful of cost pressures in the operating environment.

Our Transportation service business is expected to enter the next reporting period with a substantially stronger contracted base. The contracts secured and renewed during FY2026 were on longer, fixed-rate terms and at improved rates are providing more stable revenue streams and reducing volatility in our transport operations. As the benefit of these rate revisions has largely been reflected in FY2026, the division is expected to deliver a more stable and predictable contribution over the next 12 months. We will continue to pursue additional transport contracts with healthy margins to drive growth, supplement our workforce by hiring and training new drivers where possible to support the higher service demand and maintain our focus on reliable, quality service positions us well to capture further opportunities as they arise, while continue to manage operating costs prudently.

Our Security and Manpower division is expected to maintain its growth momentum into the next reporting period. The growth in FY2026 was driven by new contract wins on manpower outsourcing and cleaning services. We anticipate this business improvement will continue in the coming months, supported by stable client demand for such services. At the same time, we remain vigilant about wage cost pressures. Under the Security Progressive Wage Model, a three-year schedule of sustained wage increases takes effect from 1 January 2026 to 31 December 2028, progressively raising baseline wages across the sector.² While the government co-funding under the Progressive Wage Credit Scheme will partially offset the impact, the rising staff costs may affect our margin. Nevertheless, the Group is actively managing expenses and enhancing productivity through training and technology adoption to mitigate the impact. We are cautiously optimistic that our focus on service quality and efficient operations will allow the Security and Manpower business to deliver sustained improvements while complying with regulatory wage requirements.

Our Investment Properties segment is expected to deliver stronger performance in the next reporting period. Various asset enhancement initiatives undertaken over the past year had contributed to higher occupancy rates and improved rental yields. With commencement of operations of our second dormitory facility in May 2026, together with ongoing upgrading on our existing properties, we expect to increase our accommodation capacity to achieve improved rental rates and meet our customers’ needs. Industry data indicates that the worker accommodation market remains broadly in balance, with bed rents expected to rise at a moderate pace in 2026 as operators undertake upgrading works under the Dormitory Transition Scheme, temporarily constraining available bed inventory.³ While the Group will remain attentive to market conditions, we believe the current supply and demand dynamics may lead to higher utilisation and stronger performance over the next 12 months.

While the operating environment continues to present challenges and uncertainties, the Group remains focused on executing our growth strategy and capitalising on opportunities across all business units. We are encouraged by the significant favourable industry trends – from the robust construction pipeline to rising demand for transport and manpower services – and we have taken concrete steps (such as securing long-term contracts and expanding capacity) to position ourselves to benefit from these trends. Following the Group’s return to profitability and the improvement in gross profit margin achieved in FY2026, the Group is well placed to build on its operational gains and the strategic initiatives underway. The Group will also continue to focus on higher-margin projects and services, prudent cost management, and operational excellence. Barring unforeseen circumstances, the Board expects the year ahead to be another year of robust growth, building on the momentum established in FY2026.

¹ BCA, Steady Construction Demand in 2026 as Singapore Steps Up Support for Built Environment Firms Through Collaboration and Innovation, 22 Jan 2026.

² Ministry of Manpower, More Than 7,600 In-House Security Officers Covered by Security Progressive Wage Model Recommendations for Sustained Wage Increases, 30 Oct 2025.

³ Knight Frank Singapore and Dormitory Association of Singapore Limited, Worker Dormitories in Singapore, H2 2025.