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: [email protected]

Jackson Lin

Lambert Global

Phone: +1 (646) 717-4593

Email: [email protected]

RECTITUDE HOLDINGS LTD CONSOLIDATED 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
Accumulated other comprehensive losses			—				(61,042	)			(45,401	)
Total shareholders' equity			14,585,313				24,767,714				18,421,506
Total liabilities and shareholders' equity			34,208,514				43,691,462				32,496,439

RECTITUDE HOLDINGS LTD CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
		For the Years ended March 31,
		2023				2024				2025				2025
		S$				S$				S$				US$
Revenue			37,643,696				41,353,555				43,796,144				32,574,298
Cost of revenue			(25,503,026	)			(26,645,034	)			(29,057,985	)			(21,612,484	)
Gross profit			12,140,670				14,708,521				14,738,159				10,961,814
Operating expenses
Selling and marketing expenses			(2,104,824	)			(3,423,531	)			(4,798,465	)			(3,568,959	)
Research and development expenses			(83,684	)			(76,386	)			(156,947	)			(116,733	)
General and administrative expenses			(5,169,398	)			(7,044,966	)			(7,545,515	)			(5,612,135	)
Total operating expenses			(7,357,906	)			(10,544,883	)			(12,500,927	)			(9,297,827	)
Income from operations			4,782,764				4,163,638				2,237,232				1,663,987
Other income/(expense)
Other income, net			156,878				198,440				421,223				313,293
Interest expense			(142,496	)			(214,462	)			(200,638	)			(149,229	)
Total other income/(expense), net			14,382				(16,022	)			220,585				164,064
Income before income tax			4,797,146				4,147,616				2,457,817				1,828,051
Income tax expense			(870,325	)			(792,207	)			(219,952	)			(163,594	)
Net income			3,926,821				3,355,409				2,237,865				1,664,457
Other comprehensive loss
Foreign currency translation adjustments			—				—				(61,042	)			(45,401	)
Comprehensive income			3,926,821				3,355,409				2,176,823				1,619,056
Weighted average number of ordinary shares
Basic and diluted*			12,500,000				12,500,000				14,056,164				14,056,164
Earnings per share
Basic and diluted			0.31				0.27				0.16				0.12

RECTITUDE HOLDINGS LTD CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
		Ordinary shares								Additional								Accumulated other				Total
		Number of								paid-in				Retained				comprehensive				shareholders'
		shares				Amount				capital				earnings				income				equity
						S$				S$				S$				S$				S$
Balance as at April 1, 2022*			12,500,000				1,707				3,377,293				6,074,083				—				9,453,083
Net income			—				—				—				3,926,821				—				3,926,821
Dividends distribution			—				—				—				(2,150,000	)			—				(2,150,000	)
Balance as at March 31, 2023			12,500,000				1,707				3,377,293				7,850,904				—				11,229,904
Net income			—				—				—				3,355,409				—				3,355,409
Balance as at March 31, 2024			12,500,000				1,707				3,377,293				11,206,313				—				14,585,313
Issuance of ordinary shares			2,000,000				271				8,005,307				—				—				8,005,578
Net income			—				—				—				2,237,865				—				2,237,865
Foreign currency translation adjustments			—				—				—				—				(61,042	)			(61,042	)
Balance as at March 31, 2025			14,500,000				1,978				11,382,600				13,444,178				(61,042	)			24,767,714
Balance as at March 31, 2025 (US$)							1,471				8,466,047				9,999,389				(45,401	)			18,421,506

RECTITUDE HOLDINGS LTD CONSOLIDATED STATEMENTS OF CASH FLOWS
		Years ended March 31,
		2023				2024				2025				2025
		S$				S$				S$				US$
Cash flows from operating activities
Net income			3,926,821				3,355,409				2,237,865				1,664,457
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation of property, plant and equipment			540,105				536,013				609,711				453,485
Amortization of right-of-use assets			667,660				986,420				1,291,797				960,801
Operating lease modifications			(53,991	)			(7,025	)			(30,798	)			(22,907	)
Property, plant and equipment write-off			3,534				—				—				—
Bad debts write-off			2,563				—				—				—
Gain on disposal of property, plant and equipment			(386	)			(5,000	)			(957	)			(712	)
Allowance for inventories write-down			256,919				56,415				—				—
Provision for allowance for expected credit losses – third parties			214,169				68,436				358,426				266,587
Fair value change in financial instrument			(1,542	)			(9,502	)			(5,478	)			(4,074	)
Changes in operating assets and liabilities
Accounts receivable, net			(1,745,800	)			(899,646	)			(397,380	)			(295,560	)
Other receivables			(53,357	)			35,705				(948,153	)			(705,209	)
Advances to related parties			32,290				—				121,208				90,151
Inventories			(418,177	)			(524,506	)			(1,328,153	)			(987,842	)
Accounts payable			594,653				(229,789	)			1,130,409				840,765
Other payables			(234,690	)			1,602,687				(850,431	)			(632,524	)
Finance lease liabilities – interest portion of lease payment			(41,225	)			(80,461	)			(39,858	)			(29,645	)
Operating lease liabilities			(636,239	)			(816,855	)			(1,224,960	)			(911,090	)
Income tax payable			553,929				131,736				(723,114	)			(537,829	)
Net cash provided by operating activities			3,607,236				4,200,037				200,134				148,854
Cash flows from investing activities:
Purchases of property, plant and equipment			(13,551	)			(235,355	)			(615,809	)			(458,021	)
Proceeds from disposal of property, plant and equipment			386				5,000				1,000				744
Disbursement of loan to third parties			—				—				(7,680,380	)			(5,712,443	)
Repayment of loan from third parties			—				—				2,500,000				1,859,427
Net cash used in investing activities			(13,165	)			(230,355	)			(5,795,189	)			(4,310,293	)
Cash flows from financing activities:
Proceeds from common shares issued for cash			—				—				9,505,469				7,069,892
Advances from / (Repayment to) shareholders, net			161,127				(186,950	)			—				—
Dividends paid			(1,150,000	)			(2,000,000	)			—				—
Deferred IPO expenses			—				(543,076	)			—				—
Repayments of bank loans			(1,140,400	)			(126,628	)			(566,835	)			(421,595	)
Payments for finance lease liabilities – principal portion			(173,950	)			(76,991	)			(165,385	)			(123,009	)
Net cash (used in)/ provided by financing activities			(2,303,223	)			(2,933,645	)			8,773,249				6,525,288
Net changes in cash and cash equivalents			1,290,848				1,036,037				3,178,194				2,363,849
Cash and cash equivalents at beginning of the year			1,141,709				2,432,557				3,468,594				2,579,839
Cash and cash equivalents at end of the year			2,432,557				3,468,594				6,646,788				4,943,688
Supplement disclosures of cash flow information
Income taxes paid			(316,396	)			(660,471	)			(943,066	)			(701,425	)
Interest paid			(142,496	)			(214,462	)			(200,638	)			(149,229	)