Santak 1H FY2026 net loss widens 23% to S$1.4m on 18% revenue drop; going-concern risk flagged as NAV per share falls to 5.8 cents
Summary:
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Revenue fell 18.1% year on year to S$3.32m, with precision engineering sales down 23.9% and trading & distribution down 12.9% on weaker demand from oil & gas, data‑storage and security/access‑control customers.
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The Group’s gross loss more than doubled to S$0.27m, pushing negative gross margin to 8.1% (1H FY2025: negative 3.1%), as low production volumes and machine utilisation dragged profitability.
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Net loss widened to S$1.40m from S$1.13m (loss per share 1.30 cents vs 1.05 cents) despite tight cost control, as finance income fell 73% to S$0.02m on lower cash balances and interest rates, while FX swung from a gain to a loss.
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Cash and cash equivalents dropped S$1.25m to S$2.37m over the half, reflecting S$1.12m operating cash outflow and lease repayments, though the Group still held net current assets of S$2.39m and total equity of S$6.22m (NAV per share 5.78 cents).
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The board acknowledges events that “may cast significant doubt” on going concern but says existing cash, net current assets and market capitalisation should cover near‑term obligations; no interim dividend was declared to conserve cash.