Link: https://links.sgx.com/1.0.0/corporate-announcements/U28WXK621UUUU9GZ/eb5396d40a5c9cb0ff6aff7a0bdc1d9b5f64a3556ca0fe6a1fa2eb888fa91a24

Summary:

• Revenue: S$21.8 million, up 14.9% (1H FY2025: S$19.0m)

  • Driven by strong growth in excavation services (up 22.3%) and logistics/leasing (up 21.1%)

  • Recycling revenue fell by 60.9% due to lower demand for such services

• Profit: Net profit after tax S$2.48 million, down 14.5% (1H FY2025: S$2.90m), mainly on higher employee expenses (+51.7%) and other costs despite revenue growth

• Earnings per share: 1.89 cents (1H FY2025: 2.21 cents)

• Margins: Cost of materials, services and consumables rose in line with revenue; gross profit margin essentially stable due to control on diesel and cost mix

• Balance Sheet:

  • Total assets: S$45.5m (up from S$40.4m as at Jan 2025)

  • Total equity: S$36.0m (NAV per share: 27.5 cents, up from 25.8 cents)

  • Cash & cash equivalents: S$18.5m (up from S$14.0m at Jan 2025)

  • Current liabilities rose due to increased trade and other payables (linked to business volume)

• Cashflow: Net cash generated from operations S$5.2m (up from S$1.0m); capex S$0.49m; dividend paid S$0.26m; net cash inflow for the period S$4.5m

• Dividend: Interim dividend of 0.5 Singapore cent per share, record date 23 October 2025, payable 30 October 2025 (down from 1.0 cent in prior period)

• Asset sale: Office building and leasehold land reclassified as “asset held for sale” and expected to complete by last quarter FY2026

• Outlook: Construction sector remains supportive with ongoing government infrastructure projects in Singapore, though global uncertainty persists. Management remains focused on core Singapore operations and prudent investment.

TL;DR: 1H FY2026 saw double-digit revenue growth and higher asset/cash levels for Reclaims Global, offset by increased costs resulting in lower profits and EPS. Interim dividend reduced to 0.5 cent. Company continues to benefit from infrastructure demand but faces cost pressures and lower recycling revenues.