IPS Securex swings to S$0.3m 1H FY2026 profit on 94% revenue surge from security solutions; NAV per share at 1.2 cents
Summary:
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1H FY2026 revenue almost doubled to S$9.87m from S$5.10m, led by a 163% jump in Security Solutions sales to S$8.88m on accelerated project execution and stronger Singapore demand; Maintenance & Leasing revenue fell 43% to S$1.0m on non‑renewals and lower fault‑service work.
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Gross profit rose 82% to S$3.68m even as gross margin eased to 37.2% from 39.5% due to reduced higher‑margin maintenance work; net profit was S$0.30m versus a S$0.83m loss a year earlier (EPS 0.06 cents vs loss 0.17 cents).
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Operating cash flow before working capital was positive at S$0.46m, but heavy working‑capital investment in inventories, trade receivables and contract deposits produced S$0.19m operating cash outflow; cash and equivalents fell to S$1.38m, while restricted deposits and project‑related margins lifted total cash to about S$1.98m.
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Total assets climbed to S$13.2m on higher trade receivables, inventories and deposits pledged for bank guarantees, with equity increasing to S$5.87m (NAV per share 1.2 cents) despite higher admin expenses from project headcount and increased trade‑finance usage.
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Management highlights a competitive but growing Singapore security‑solutions market anchored by large infrastructure and public‑sector projects and says it will focus on execution, working‑capital discipline and leveraging trade‑finance facilities to support its enlarged order book.