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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: ir@rectitude.com.sg

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

 
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)
 

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