Award Banner
Award Banner

Rectitude Holdings Ltd Announces Fiscal Year ended March 31, 2024 Full Year Financial Results

Rectitude Holdings Ltd Announces Fiscal Year ended March 31, 2024 Full Year Financial Results GlobeNewswire July 29, 2024

SINGAPORE, July 29, 2024 (GLOBE NEWSWIRE) -- Rectitude Holdings Ltd (the “Company” or “Rectitude”), a Singapore-based provider of safety equipment and related industrial-grade hardware products, today announced its financial results for the full year ended March 31, 2024.

Fiscal Year ended March 31, 2024 Full Year Highlights (amounts in US$ unless otherwise noted):

  • Revenues for the fiscal year ended March 31, 2024, in Singapore Dollars, increased 9.86%.
  • Gross profit margin improved to 35.57% of revenues, up 332 basis points.
  • Selling and marketing expenses in Singapore Dollars, increased S$1.32 million.
  • Research and development expenses in Singapore Dollars decreased S$0.01 million.
  • General and administrative expenses in Singapore Dollars, increased S$1.88 million.
  • Net income was $2.49 million, or $0.20 per diluted share, for the fiscal ended March 31, 2024. In Singapore Dollars, net income was S$3.36 million, or S$0.27 per diluted share, for the fiscal ended March 31, 2024, compared to net income of S$3.93 million, or S$0.31 per diluted share, for the fiscal year ended March 31, 2023.
  • Adjusted EBITDA for the fiscal year ended March 31, 2024, was $4.73 million. In Singapore Dollars, Adjusted EBITDA increased to S$6.37, from S$6.15 million in the prior year period.

“We are incredibly proud of the hard work and dedication shown from all of our employees that resulted in a year of solid performance and growth, culminating in our successful IPO and listing on Nasdaq,” said Mr. Jian Zhang, Chairman, Chief Executive Officer, and Executive Director at Rectitude. “The capital we raised through this process will be invested back into the Company to cultivate and foster long-term sustainable growth, enhanced operational efficiencies and continued exemplary service to our customers. We have already demonstrated this through our new branch opened earlier this calendar year, designed to increase our strategic presence across Singapore. We will continue to evaluate new opportunities as they present themselves to continue our growth and deliver enhanced shareholder value.”

Revenues

For the fiscal year ended March 31, 2024, total revenues were $30.69 million. In Singapore Dollars, revenues were S$41.35 million and S$37.64 for the respective fiscal years ended March 31, 2024 and 2023. The increase was primarily driven by stronger customer demand for safety equipment given the increased construction activity within the Company’s markets.

Cost of Revenues

For the fiscal year ended March 31, 2024, cost of revenues was $19.77 million. In Singapore Dollars, for the fiscal years ended March 31, 2024 and 2023, cost of revenues were S$26.65 million and S$25.50 million, respectively. The increase in cost of revenue was consistent with the increase of revenue during the year, offset due to better procurement costs secured from larger volumes of orders and more favorable product mix, as our safety equipment mainly consist of our own branded products that typically have higher margins.

Gross profit

Gross profit for the fiscal year ended March 31, 2024 was $10.92 million, representing 35.57% of operating revenues. In Singapore Dollars, gross profit for the fiscal years ended March 31, 2024 and 2023 was S$14.71 million and $12.14 million, representing 35.57% and 32.25% of operating revenues, respectively. The increase in gross profit was mainly due to increased sales volume of safety equipment and related operating leverage, favorable product mix, as well as improved efficiencies.

Selling and marketing expenses

Selling and marketing expenses primarily included expenses related to advertising and marketing activities and associated costs of our retail branches, which included labor costs, sales commissions and operating lease expenses. For the fiscal year ended March 31, 2024, selling and marketing expenses were $2.54 million. In Singapore Dollars, for the fiscal years ended March 31, 2024 and 2023, selling and marketing expenses were S$3.42 million and S$2.10 million respectively. The increase was primarily due to an increase in the allocation of resources to running and expanding retail branches along with an increase in the number of branch employees from 30 to 36, which is expected to continue in the next year. 

Research and development expenses

Research and development expenses primarily consisted of compensation cost to engineering, design and product development employees and software expenses. For the fiscal year ended March 31, 2024, research and development expenses were $0.05 million. In Singapore Dollars, for the fiscal years ended March 31, 2024 and 2023, research and development expenses were S$0.07 million and S$0.08 million respectively. The decrease was primarily due to a reduction in software expenses.

General and administrative expenses

General and administrative expenses consisted primarily of motor vehicle running expenses, transportation, property maintenance and property tax, allowance for expected credit losses and general administrative expenses such as staff costs, depreciation, legal and professional fees and other miscellaneous administrative expenses. For the fiscal year ended March 31, 2024, general and administrative expenses were $5.23 million. In Singapore Dollars, for the fiscal years ended March 31, 2024 and 2023, general and administrative expenses were S$7.04 million and S$5.17 million respectively. The increase was mainly due to an increase in staff expenses resulting from increased number of employees from 68 to 71, annual salary increment adjustments, an increase in professional fees related to the IPO as well as expenses to support business growth.

Net Income

As a result of the factors described above, net income for the fiscal year ended March 31, 2024 was approximately $2.49 million. In Singapore Dollars, net income for the fiscal years ended March 31, 2024 was approximately S$3.36 million, compared to net income of S$3.93 million, for the fiscal year ended March 31, 2023.

Earnings per Share - Basic and Diluted

Earnings per basic and diluted share for the fiscal year ended March 31, 2024 was $0.20. In Singapore Dollars, earnings per basic and diluted share for the fiscal year ended March 31, 2024 was S$0.27, compared to S$0.31 for the same period of 2023.

Adjusted EBITDA

The Company also views earnings before interest, taxes, depreciation and amortization, subject to specific adjustments (Adjusted EBITDA) as an important measure of the results of operations. For the fiscal year ended March 31, 2024, Adjusted EBITDA was $4.73 million. In Singapore dollars, Adjusted EBITDA increased to S$6.37 million, from S$6.15 million during the same period. The increase was primarily due to exclusion of certain non-recurring items, such as professional fees incurred in relation to the IPO (referred to as “non-GAAP adjustments”), from the Company’s most directly comparable reported U.S. GAAP figures.

The Company believes these non-GAAP adjustments provide meaningful information to assist investors in understanding financial results and assessing prospects for future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating result.

Outlook

Contemplating the Company’s Outlook for Fiscal Year 2025, Mr. Zhang commented, “We look forward to another auspicious year of growth and strong operating performance for Rectitude. Upon completing our IPO, we have raised sufficient capital to fund our growth and begin executing our long-term strategic plan. We will continue to invest in expanding our branches and developing new product offerings to meet the enhanced demand for worker safety within the Southeast Asian markets we serve. We maintain our focus on the core principles that have guided our Company for more than 25 years as we drive our performance to new heights.”

About Rectitude Holdings Ltd

Founded in 1997 in Singapore, Rectitude is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude’s products and solutions are marketed to a wide array of distributor networks and end markets, both in Singapore and increasingly throughout the Southeast Asian region, including Brunei, Cambodia, Malaysia, Indonesia, and Vietnam.

For more information, please visit the Company’s website: https://ir.rectitude.com.sg

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company's proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

For investor and media inquiries, please contact:

Rectitude
Investor Relations
Email: ir@rectitude.com.sg

Jackson Lin
Lambert Global
Phone: +1 (646) 717-4593
Email: jlin@lambert.com


         
RECTITUDE HOLDINGS LTD
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,
  
 2023 2024 2024
 S$ S$ US$
Revenue 37,643,696   41,353,555   30,689,095 
Cost of revenue (25,503,026)  (26,645,034)  (19,773,680)
Gross profit 12,140,670   14,708,521   10,915,415 
         
Operating expenses        
Selling and marketing expenses (2,104,824)  (3,423,531)  (2,540,654)
Research and development expenses (83,684)  (76,386)  (56,687)
General and administrative expenses (5,169,398)  (7,044,966)  (5,228,175)
Total operating expenses (7,357,906)  (10,544,883)  (7,825,516)
         
Income from operations 4,782,764   4,163,638   3,089,899 
         
Other income (expense)        
Other income, net 156,878   198,440   147,265 
Interest expense (142,496)  (214,462)  (159,155)
Total other income, net 14,382   (16,022)  (11,890)
         
Income before income tax 4,797,146   4,147,616   3,078,009 
         
Income tax expense (870,325)  (792,207)  (587,909)
Net income and comprehensive income 3,926,821   3,355,409   2,490,100 
         
Weighted average number of ordinary shares        
Basic and diluted* 12,500,000   12,500,000   12,500,000 
Earnings per share        
Basic and diluted 0.31   0.27   0.20 
         



             
RECTITUDE HOLDINGS LTD
CONSOLIDATED BALANCE SHEETS
             
  As of March 31,
  2023 2024 2024
  S$ S$ US$
Assets      
Current assets      
Cash and cash equivalents  2,432,557   3,468,594   2,574,096 
Accounts receivable, net  10,918,435   11,508,064   8,540,307 
Inventories, net  5,781,804   6,249,895   4,638,141 
Other receivables  431,134   497,309   369,061 
Advances to related parties  218,318   358,019   265,691 
Deferred initial public offering (“IPO”) costs     1,560,933   1,158,392 
Total current assets  19,782,248   23,642,814   17,545,688 
             
Non-current assets            
Financial instrument  221,791   231,293   171,646 
Property, plant and equipment, net  6,112,541   5,811,883   4,313,086 
Right-of-use assets – operating leases  2,580,422   4,522,524   3,356,233 
Total non-current assets  8,914,754   10,565,700   7,840,965 
Total assets  28,697,002   34,208,514   25,386,653 
             
Liabilities and shareholders’ equity            
Current liabilities            
Bank loans, current portion  381,083   598,848   444,414 
Finance lease liabilities, current portion  211,119   168,192   124,818 
Accounts payable  6,670,883   6,441,094   4,780,033 
Operating lease liabilities, current portion  670,186   1,240,129   920,318 
Other payables  429,637   3,058,781   2,269,967 
Amount due to shareholders  186,950       
Amount due to a director  8,600       
Provision for income taxes  1,045,383   1,177,119   873,558 
Dividend payable  2,000,000       
Total current liabilities  11,603,841   12,684,163   9,413,108 
             
Non-current liabilities:            
Bank loans, non-current portion  3,415,360   3,070,967   2,279,011 
Finance lease liabilities, non-current portion  494,006   379,481   281,619 
Operating lease liabilities, non-current portion  1,952,445   3,487,144   2,587,862 
Deferred tax liabilities  1,446   1,446   1,073 
Total non-current liabilities  5,863,257   6,939,038   5,149,565 
Total liabilities  17,467,098   19,623,201   14,562,673 
Commitments and contingencies (Note 19)         
Shareholders’ equity            
Ordinary shares, US$0.0001 par value, authorized 500,000,000 shares, issued 12,500,000 shares outstanding as of March 31, 2023 and 2024, respectively*  1,707   1,707   1,250 
Additional paid-in capital  3,377,293   3,377,293   2,506,340 
Retained earnings  7,850,904   11,206,313   8,316,390 
Total shareholders’ equity  11,229,904   14,585,313   10,823,980 
Total liabilities and shareholders’ equity  28,697,002   34,208,514   25,386,653 
             



 
RECTITUDE HOLDINGS LTD
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED MARCH 31,
          
  2023 2024 2024
  S$ S$ US$
Cash flows from operating activities         
Net income  3,926,821   3,355,409   2,490,100 
          
Adjustments to reconcile net income to net cash provided by operating activities         
Depreciation of property, plant and equipment  540,105   536,013   397,783 
Amortization of right-of-use assets  667,660   986,420   732,037 
Operating lease modifications  (53,991)  (7,025)  (5,213)
Property, plant and equipment write-off  3,534       
Bad debts write-off  2,563       
Loss/ (Gain) on disposal of property, plant and equipment  (386)  (5,000)  (3,711)
Allowance for inventories write-down  256,919   56,415   41,866 
Provision for allowance for expected credit losses – third parties  214,169   68,436   50,787 
Fair value change in financial instrument  (1,542)  (9,502)  (7,052)
          
Changes in operating assets and liabilities         
Accounts receivable, net  (1,745,800)  (899,646)  (667,641)
Other receivables  (53,357)  35,705   26,497 
Advances to related parties  32,290   -   - 
Inventories  (418,177)  (524,506)  (389,244)
Accounts payable  594,653   (229,789)  (170,530)
Other payables  (234,690)  1,602,687   1,189,378 
Finance lease liabilities – interest portion of lease payment  (41,225)  (80,461)  (59,711)
Operating lease liabilities  (636,239)  (816,855)  (606,200)
Income tax payable  553,929   131,736   97,765 
Net cash provided by operating activities  3,607,236   4,200,037   3,116,911 
          
Cash flows from investing activities:         
Purchases of property, plant and equipment  (13,551)  (235,355)  (174,660)
Proceeds from disposal of property, plant and equipment  386   5,000   3,711 
Net cash used in investing activities  (13,165)  (230,355)  (170,949)
          
Cash flows from financing activities:         
Advances from / (Repayment to) shareholders, net  161,127   (186,950)  (138,738)
Dividends paid  (1,150,000)  (2,000,000)  (1,484,230)
Deferred IPO expenses     (543,076)  (403,025)
Repayments of bank loans  (1,140,400)  (126,628)  (93,973)
Payments for finance lease liabilities – principal portion  (173,950)  (76,991)  (57,137)
Net cash used in financing activities  (2,303,223)  (2,933,645)  (2,177,103)
Net changes in cash and cash equivalents  1,290,848   1,036,037   768,859 
Cash and cash equivalents at beginning of the year  1,141,709   2,432,557   1,805,237 
Cash and cash equivalents at end of the year  2,432,557   3,468,594   2,574,096 
          
Supplement disclosures of cash flow information         
Income taxes paid  (316,396)  (660,471)  (492,631)
Interest paid  (142,496)  (214,462)  (159,155)

Primary Logo

This business broadcast service is brought to you by GlobeNewswire through syndication. We have not reviewed or endorsed the content. For any corrections and clarifications, please send it to GlobeNewswire Contact Us Page. If you still require further assistance, please contact our support team at businessbroadcast@asiaone.com.

homepage

trending

trending
    2 Taiwanese men allegedly part of a crime syndicate charged with cheating
    AI and art: Studio Ghibli-inspired trend sparks debate on ethics and consent
    'My brain got so fried up': Gurmit Singh hit by anxiety attack while acting in his 1st Chinese drama
    How do Trump's tariffs affect you? Here is an explainer
    Edwin Goh proposes to Rachel Wan, both returning to Singapore after 2 years in Australia
    2 GRCs and 1 SMC: This Woodlands junction separates 3 electoral divisions
    The iconic Milo Van beverage is now available in supermarkets
    21 men in Singapore among 435 arrested in cross-border operation targeting online child sex abuse
    Disney's Beauty and the Beast musical to make Asia premiere in Singapore this December
    What happens next after South Korea's removal of President Yoon?
    Singapore and Malaysia police's video collaboration for Hari Raya goes viral
    HSA raids home of woman filmed vaping in train, finds vape pod containing anaesthetic

Singapore

Singapore
    • Singapore deploys 34-member emergency medical team to aid Myanmar quake relief efforts
    • PPP's Goh Meng Seng says MPs work 'extra hard' only before elections for votes, Baey Yam Keng hits back
    • 'She should be with her family': Employer gives maid plane ticket, $800 to return to Myanmar and search for missing mum
    • 'Don't cheat, don't be greedy': Elderly couple in their 90s share secret to longevity with DPM Heng in viral clip
    • Clean-up underway for oil leak from Johor; public advised to avoid water activities at Changi and Pasir Ris beaches
    • Online voting not feasible due to 'voter impersonation' risks: ELD
    • Singapore disappointed with tariffs, will engage US to clarify calculations: DPM Gan
    • 'He needed something to help him fight,' says man who bought Hokkien mee for dying patient
    • MaNaDr admits to lapses, introduces 1-minute minimum teleconsultation rule
    • New bus interchanges in Woodleigh and Pasir Ris to open in late April

Entertainment

Entertainment
    • 'I was right there just 3cm behind her': Exo's Kai recalls joys of simple life during military service, meeting commuter checking him out online
    • E-Junkies: The Click Five will consider making new music if upcoming tour goes well
    • Former NCT idol Lucas to make acting debut in Taiwan
    • 'Blessed beyond measure': Desmond Tan and wife expecting second child
    • Jean-Claude Van Damme accused of having sex with trafficked women
    • Jim Carrey pays tribute to Val Kilmer's 'grace and courage'
    • Val Kilmer reportedly discussed reprising his role as Batman before his death
    • Sum 41 releases final music video before splitting up
    • Probe finds former Smap idol Masahiro Nakai committed sexual assault, victim says 'What I've lost will never be recovered'
    • Gossip mill: Chantalle Ng dating longtime friend, ex-TVB actress now sells chicken feet, Leslie Cheung's partner pays tribute on his 22nd death anniversary

Lifestyle

Lifestyle
    • A first look: Blue Bottle Coffee's cafe at Raffles City, here's what to expect
    • Life-sized dinosaurs, pre-historic plants: Gardens by the Bay to transform into Jurassic World this May
    • 'The menu is a reflection of us': Singaporean woman and American husband open restaurant selling soul food
    • Life after death: Guide to be launched to help parent caregivers plan for autistic children's future
    • Hyundai Santa Fe review: Rugged-looking premium SUV levels up the luxury for Hyundai
    • What to do this weekend (April 4 to 6)
    • Long-range cruiser: GAC E9 luxury MPV with over 1,000km of range now in Singapore
    • Deepal officially arrives in Singapore with opening of new showroom
    • We ask parents how they keep their children's screen time low - here's the lowdown
    • The best new-launch condo layouts we've seen so far in 2025

Digicult

Digicult
    • A $500 wake-up call: How the Samsung Galaxy Ring made me realise my stress
    • Monster Hunter Wilds producer explains how game has remained unique and fresh over 20 years
    • Nintendo Switch 2 to launch in June with US$449.99 price tag
    • Games in April: RPGs, racing and Ronaldo in a fighting game
    • Is it time to get a MacBook at a good price? The M4 MacBook Air says yes
    • China's Baidu launches 2 new AI models as industry competition heats up
    • China's top universities expand enrolment to beef up capabilities in AI, strategic areas
    • International Women's Day: Meet the Singapore women levelling up in gaming
    • US indicts slew of alleged Chinese hackers, sanctions company over spy campaign
    • Meet the women powering innovation in tech in Singapore and beyond

Money

Money
    • Giant deal: Malaysian company to acquire Cold Storage and Giant supermarket chains in Singapore
    • Trump's tariffs provoke trade war threats, fears of pricier iPhones
    • Australia says US tariffs 'not act of a friend' but rules out reciprocal move
    • South Korea's acting president calls for talks with US over tariffs
    • Southeast Asian nations, hit particularly hard by US tariffs, prep for talks with Trump
    • China urges US to immediately lift tariffs, vows retaliation
    • Trump's tariffs stoke global trade war as China and EU vow response
    • HDB to launch 3,000 balance flats in July 2025: What homebuyers need to know
    • With 61 years left on its lease, this Bishan maisonette matches national record at $1.5m
    • Why are homebuyers choosing pricier new launch 2-bedders over resale options in 2025?

Latest

Latest
  • Daily roundup: Singapore and Malaysia police's video collaboration for Hari Raya goes viral — and other top stories today
  • Myanmar junta chief meets foreign leaders in Bangkok as earthquake toll tops 3,100
  • Russian drone barrage hits Kharkiv homes, kills 4 people
  • Trump offers support to French far-right leader Le Pen after her conviction
  • For Trump, tariff gamble brings political risk
  • South Korea's President Yoon ousted
  • Driver of car in Amsterdam explosion may have been attempting suicide, police say
  • Netanyahu may visit US next week, Trump says
  • South Korea's impeached President Yoon faces court ruling to decide his fate

In Case You Missed It

In Case You Missed It
  • Thai woman struggles to evacuate during earthquake while her dog sleeps unfazed
  • Workers painting exterior of Geylang block discover man's skeletal remains in flat
  • 'New, younger' PAP team vows to reclaim WP-controlled Sengkang GRC, says Lam Pin Min
  • New face Jackson Lam 'very good on the ground' and will be asset to Parliament, says Shanmugam
  • Woman who publicised tips on how she evaded GST for luxury purchases fined $18k
  • Powerful quake in Southeast Asia kills several, 81 trapped in Bangkok building rubble
  • Dog dies after being skinned alive in Malaysia, animal welfare group condemns 'barbaric' act
  • Blue for seafood, red for meat: Case partners Koufu to have colour-coded price labels at 'cai fan' stalls
  • WP will campaign for 'responsible and loyal opposition' in GE2025 to earn seats in Parliament, says Pritam
This website is best viewed using the latest versions of web browsers.