In FY2025, the group reported a total revenue of $21.6 million, a decline of $3.5 million or 13.9% y-o-y from $25.1 million in the same period a year ago.
Although revenue from the group’s manufacturing and printed circuit board assembly (PCBA) services business segment continued to grow, rising to $13.8 million from $12.6 million in the FY2024, revenue from the engineering services business segment fell to $7.8 million in the FY2025 from $12.5 million, due to “shifts in customer demand and project timing”.
Cost of sales, meanwhile, fell marginally by 5.1% y-o-y to $17.6 million in the FY2025 from $18.5 million in the FY2024.
With this, gross profit in the FY2025 dipped 38.8% y-o-y to $3.99 million from $6.53 million the same period last year. The gross profit margin thus fell 7.5 percentage points (ppts) y-o-y to 18.5% from 26.0% from the FY2024.
Despite the subdued performance for the FY2025, the group’s board of directors have proposed a final dividend of 0.25 cents per share. The proposed one-tier tax-exempt final dividend, which is subject to shareholders’ approval at the forthcoming annual general meeting of the group, will be payable on Nov 28.
Avi-Tech’s balance sheet “remains healthy” with total assets of $58.0 million and total liabilities of $7.1 million, supported by a positive working capital of $41.7 million.
Net cash generated from operations amounted to $2.2 million, contributing to a cash balance of $37.5 million as at end-June.
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The group notes that this “strong financial position” equips it with the stability and capability to navigate ongoing challenges and pursue strategic opportunities.
On its outlook, the group will remain steadfast in its commitment to prudent financial management and rigorous cost controls as it navigates this “difficult period”. Given the continued volatility of the operating outlook and prevailing headwinds, Avi-Tech remains focused on further enhancing operational efficiency and streamlining processes to strengthen its competitive position.
At the same time, the group is actively evaluating “potential avenues” for growth and innovation that align with its longer-term strategic objectives.
Chief executive officer (CEO) and executive chairman, Lim Eng Hong, says: “FY2025 was marked by an extremely challenging operating environment across our key markets, with persistent industry headwinds and significantly softer demand impacting both revenue and profitability. Despite these pressures, Avi-Tech remained resilient and closed the year profitably.”
“With market sentiment remaining cautious and limited visibility on demand, we are prioritising operational resilience by optimising resource allocation, improving productivity, and adopting a more strategic approach to capital allocation. As part of this broader strategy, we are also pursuing expansion within our existing markets, deepening our customer base, and exploring M&A (mergers and acquisitions) opportunities that align with our long-term objectives,” adds Lim.
As at 4.40pm, shares in Avi-Tech are trading 0.5 cents lower or 2.44% down at 20 cents per share.
