Rectitude Holdings Ltd Announces Fiscal Year ended March 31, 2025 Full-Year Financial Results

SINGAPORE, July 31, 2025 (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, 2025.

Fiscal Year ended March 31, 2025 Full Year Highlights (amounts in US$ unless otherwise noted):

Revenues for the fiscal year ended March 31, 2025, in Singapore Dollars, increased 5.91%.

Gross profit margin decreased to 33.65% of revenues, down 192 basis points.

Selling and marketing expenses in Singapore Dollars, increased S$1.38 million.

Research and development expenses in Singapore Dollars increased S$0.08 million.

General and administrative expenses in Singapore Dollars, increased S$0.51 million.

Net income was $1.66 million, or $0.12 per diluted share, for the fiscal ended March 31, 2025. In Singapore Dollars, net income was S$2.24 million, or S$0.16 per diluted share, for the fiscal ended March 31, 2025, compared to net income of S$3.36 million, or S$0.27 per diluted share, for the fiscal year ended March 31, 2024.

EBITDA for the fiscal year ended March 31, 2025, was $3.39 million. In Singapore Dollars, EBITDA decreased to S$4.56, from S$5.88 million in the prior year period.

"Fiscal 2025 was a challenging year from an earnings perspective, but our focus on growing Rectitude's business for the long term will provide enhanced prospects for returns on the investments we made this year in new product launches in potable power as well as new branches to enhance distribution and customer service," said Mr. Jian Zhang, Chairman, Chief Executive Officer, and Executive Director at Rectitude. "Our new All-in-one Intelligent Micro-grid System (AIMS) battery storage system provides an innovative, clean energy solution for a variety of locations presenting a solution for consistent energy in remote job sites while also benefiting the environment with lower emissions. We will continue to invest in innovative solutions that provide enhanced solutions to our customers and drive enhanced value to our shareholders."

Revenues

For the fiscal year ended March 31, 2025, total revenues were $32.57 million. In Singapore Dollars, revenues were S$43.80 million and S$41.35 million for the respective fiscal years ended March 31, 2025 and 2024. The increase was primarily driven by increased customer demand for safety equipment with higher construction activity within the Company's markets.

Cost of Revenues

For the fiscal year ended March 31, 2025, cost of revenues was $21.61 million. In Singapore Dollars, for the fiscal years ended March 31, 2025 and 2024, cost of revenues were S$29.06 million and S$26.65 million, respectively. The increase in cost of revenue was driven by the increase of revenue during the year, as well as a mixed shift toward higher-cost products and the commercial launch of the AIMS system.

Gross profit

Gross profit for the fiscal year ended March 31, 2025 was $10.96 million, representing 33.65% of operating revenues. In Singapore Dollars, gross profit for the fiscal years ended March 31, 2025 and 2024 was S$14.74 million and $14.71 million, representing 33.65% and 35.57% of operating revenues, respectively. The slight increase in gross profit was mainly due to increased sales volume, while the decrease in gross profit margin was due to an unfavorable shift in product mix as well as freight costs and the commercial launch of AIMS.

Selling and marketing expenses

Selling and marketing expenses primarily included expenses related to advertising and marketing activities and costs associated with our retail branches, which included labor costs, sales commissions and operating lease expenses. For the fiscal year ended March 31, 2025, selling and marketing expenses were $3.57 million. In Singapore Dollars, for the fiscal years ended March 31, 2025 and 2024, selling and marketing expenses were S$4.80 million and S$3.42 million respectively. This increase was primarily due to rising costs associated with expanding retail branches including an increase in the number of branch employees, 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, 2025, research and development expenses were approximately, $117,000. In Singapore Dollars, for the fiscal years ended March 31, 2025 and 2024, research and development expenses were approximately, S$157,000 and S$76,000 respectively. The increase was primarily due to costs associated with the development and launch of the AIMS portable power system as well as continued investment in the integration of virtual reality technology into our safety training systems.

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, 2025, general and administrative expenses were $5.61 million. In Singapore Dollars, for the fiscal years ended March 31, 2025 and 2024, general and administrative expenses were S$7.55 million and S$7.04 million respectively. The increase was mainly due to an increase in provision for allowance for expected credit losses to third parties as well as other increased administrative expenses to support business growth.

Net Income

As a result of the factors described above, net income for the fiscal year ended March 31, 2025 was approximately $1.66 million. In Singapore Dollars, net income for the fiscal years ended March 31, 2025 was approximately S$2.24 million, compared to net income of S$3.36 million, for the fiscal year ended March 31, 2024.

Earnings per Share - Basic and Diluted

Earnings per basic and diluted share for the fiscal year ended March 31, 2025 was $0.12. In Singapore Dollars, earnings per basic and diluted share for the fiscal year ended March 31, 2025 was S$0.16, compared to S$0.27 for the same period of 2024.

EBITDA

The Company also views earnings before interest, taxes, depreciation and amortization, (EBITDA) as an important measure of the results of operations. For the fiscal year ended March 31, 2025, EBITDA was $3.39 million. In Singapore dollars, EBITDA decreased to S$4.56 million, from S$5.88 million during the same period. The decrease in EBITDA was primarily driven by lower net income and taxes, partially offset by increases in interest, depreciation and amortization expenses.

Outlook

Contemplating the Company's Outlook for Fiscal Year 2026, Mr. Zhang commented, "We look forward to another exceptional year of growth and strong operating performance for Rectitude. In the last 12 months, we have delivered on our clearly articulated strategy, extending beyond our core business to capture value across the safety equipment supply chain. We have successfully launched our AIMS system to support our customers' power needs in remote construction sites, which allow them to transition to a low-carbon and environmentally sustainable methods."

"We have the financial strength to provide a central business platform for first-generation owners of traditional businesses, who may be retiring without succession plans, to collaborate and use our business networks, resources and proprietary brands to expand their own businesses. This renders these business partners competitive in the evolving market landscape, while bringing synergy and more growth for Rectitude within our Southeast Asian markets."

"Most importantly, we maintain our focus on the core principles that have guided our Company for more than 26 years as we drive our performance to new heights," Mr. Zhang concluded.

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:

Jackson Lin Lambert GlobalPhone: +1 (646) 717-4593 Email:

 

RECTITUDE HOLDINGS LTDCONSOLIDATED BALANCE SHEETS

 

 

 

As of March 31,

 

 

 

2024

 

 

2025

 

 

2025

 

 

 

S$

 

 

S$

 

 

US$

 

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

3,468,594

 

 

 

6,646,788

 

 

 

4,943,688

 

Accounts receivable, net

 

 

11,508,064

 

 

 

11,547,018

 

 

 

8,588,336

 

Inventories, net

 

 

6,249,895

 

 

 

7,578,048

 

 

 

5,636,332

 

Other receivables

 

 

497,309

 

 

 

1,445,462

 

 

 

1,075,093

 

Advances to related parties

 

 

358,019

 

 

 

236,811

 

 

 

176,133

 

Deferred initial public offering ("IPO") costs

 

 

1,560,933

 

 

 

—

 

 

 

—

 

Total current assets

 

 

23,642,814

 

 

 

27,454,127

 

 

 

20,419,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

Financial instrument

 

 

231,293

 

 

 

236,771

 

 

 

176,103

 

Loan receivables

 

 

—

 

 

 

5,180,380

 

 

 

3,853,016

 

Property, plant and equipment, net

 

 

5,811,883

 

 

 

6,399,557

 

 

 

4,759,804

 

Right-of-use assets – operating leases

 

 

4,522,524

 

 

 

4,420,627

 

 

 

3,287,934

 

Total non-current assets

 

 

10,565,700

 

 

 

16,237,335

 

 

 

12,076,857

 

Total assets

 

 

34,208,514

 

 

 

43,691,462

 

 

 

32,496,439

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Bank loans, current portion

 

 

598,848

 

 

 

400,016

 

 

 

297,520

 

Finance lease liabilities, current portion

 

 

168,192

 

 

 

199,320

 

 

 

148,248

 

Accounts payable

 

 

6,441,094

 

 

 

7,571,503

 

 

 

5,631,464

 

Operating lease liabilities, current portion

 

 

1,240,129

 

 

 

1,298,058

 

 

 

965,458

 

Other payables

 

 

3,058,781

 

 

 

2,208,350

 

 

 

1,642,507

 

Provision for income taxes

 

 

1,177,119

 

 

 

454,005

 

 

 

337,676

 

Total current liabilities

 

 

12,684,163

 

 

 

12,131,252

 

 

 

9,022,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Bank loans, non-current portion

 

 

3,070,967

 

 

 

2,834,183

 

 

 

2,107,983

 

Finance lease liabilities, non-current portion

 

 

379,481

 

 

 

593,510

 

 

 

441,435

 

Operating lease liabilities, non-current portion

 

 

3,487,144

 

 

 

3,363,357

 

 

 

2,501,567

 

Deferred tax liabilities

 

 

1,446

 

 

 

1,446

 

 

 

1,075

 

Total non-current liabilities

 

 

6,939,038

 

 

 

6,792,496

 

 

 

5,052,060

 

Total liabilities

 

 

19,623,201

 

 

 

18,923,748

 

 

 

14,074,933

 

Commitments and contingencies

 

 

—

 

 

 

—

 

 

 

—

 

Shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares, US$0.0001 par value, authorized 500,000,000 shares, issued 12,500,000 and 14,500,000 shares outstanding as of March 31, 2024 and March 31, 2025, respectively*

 

 

1,707

 

 

 

1,978

 

 

 

1,471

 

Additional paid-in capital

 

 

3,377,293

 

 

 

11,382,600

 

 

 

8,466,047

 

Retained earnings

 

 

11,206,313

 

 

 

13,444,178

 

 

 

9,999,389