Financials

The changes in most balance sheets lines were mainly due to:

• completion of disposal of assets held for sale and liabilities directly associated with the assets held for sale;
• increase in total bank borrowings and the reclassification of S$6.8 million bank borrowings from non-current to current liabilities;
• payment of S$1.1 million dividends in respect of previous financial year; and
• decrease in goodwill following its full impairment.

Apart from the above, the change in net assets was mainly due to the total comprehensive loss of S$8.9 million, and changes in working capital items were mainly due to timing differences.

The Group generated net cash inflows of S$3.0 million from operating activities before working capital changes 2HFY2026 (year-to-date: S$3.1 million), reflecting improved underlying operating performance from 1HFY2026. After accounting for working capital movements and net investing outflows, which included capital expenditure of S$3.7 million (year-to-date: S$9.2 million) and net proceeds of approximately S$1.2 million (year-to-date: S$4.7 million) from the prior disposal of Pemac, the Group recorded a net decrease in cash and cash equivalents. Taking into consideration the net proceeds from bank borrowings of S$1.0 million (year-to-date: S$4.0 million), as well as the payment of FY2025 final dividend of S$1.1 million in August 2025, the Group's cash and cash equivalent stood at approximately S$5.3 million as at 31 March 2026.

6 months ended 31 March 2026 ("2HFY2026") vs 6 months ended 31 March 2025 ("2HFY2025")

The Group reported S$26.9 million revenue for 2HFY2026, a decrease of 10% year-on-year ("YOY") compared to S$29.8 million in 2HFY2025. While performance improved compared to 1HFY2026, supported by broad-based improvements across key geographical segments, revenue remained lower on a YOY basis as the Group continued to feel the residual impact of market softness following Saudi Aramco's rig suspensions in 2024 and 2025, which had more significantly affected activity level in the earlier part of the financial year. Correspondingly, the Group's gross profit margin declined to 27.9% (from 35.2% in 2HFY2025), primarily due to start-up underutilization at the new UAE facility.

Within other operating expenses, the Group recognized S$3.0 million in impairment of goodwill and a total of S$0.8 million provisions in light of ongoing uncertainties in the Middle East. Excluding these non-cash charges, the underlying cost base continued to trend down in 2HFY2026, supported by sustained cost discipline, despite higher expenses associated with the scaling up of operations in the UAE. Finance costs increased over the periods, in line with higher borrowings.

Overall, the Group's reported a net loss after tax of S$4.5 million in 2HFY2026, compared to a profit of S$2.6 million in 2HFY2025.

12 months ended 31 March 2026 ("FY2026") vs 12 months ended 31 March 2025 ("FY2025")

The Group reported S$49.9 million revenue for FY2026, a decrease of 21% year-on-year ("YOY") compared to S$63.3 million in FY2025. While performance improved compared to 1HFY2026, supported by broad-based improvements across key geographical segments, revenue remained lower on a YOY basis as the Group continued to feel the residual impact of market softness following Saudi Aramco's rig suspensions in 2024 and 2025, which had more significantly affected activity level in the earlier part of the financial year. Correspondingly, the Group's gross profit margin declined to 25.5% (from 33.9% in FY2025), primarily due to start-up underutilization at the new UAE facility.

Within other operating expenses, the Group recognized S$3.0 million in impairment of goodwill and a total of S$0.8 million provisions in light of ongoing uncertainties in the Middle East. Excluding these non-cash charges, the underlying cost base continued to trend down in 2HFY2026, supported by sustained cost discipline, despite higher expenses associated with the scaling up of operations in the UAE. Finance costs increased over the periods, in line with higher borrowings.

Profit from discontinued operation comprised the gain on disposal of Pemac, following the completion of the transaction on 14 April 2025.

Overall, the Group's reported a net loss after tax of S$6.5 million in FY2026, compared to a profit of S$4.8 million in FY2025.

FY2026 was a challenging year for the Group, with market softness across the key operating regions following the rig suspensions in Saudi Arabia. Despite this, the Group is encouraged by the sequential improvement in activity levels in the second half of FY2026, particularly in Singapore and Bahrain, which supported better underlying performance.

The commencement of operations at the Group's UAE facility marks an important milestone in its regional expansion and positions the Group for opportunities as market conditions stabilize.

March 2026 was a particularly difficult period as the Group navigated disruptions arising from the conflict in the Middle East. While the impact on the second half results was limited, the Group expects the operating environment to remain challenging and losses are expected to persist unless conditions stabilize.

The Group will continue to focus on cost discipline, operational efficiency and strengthening its core markets.