Katrina Group Ltd. – Net Profit Decline of 15% in FY 2024

Business Description

Katrina Group Ltd. is a Singapore-based company that operates in the hospitality and food and beverage (F&B) industries. The company has two main business segments: Hospitality and F&B. The Hospitality segment operates serviced apartments and short-term accommodation, while the F&B segment operates various restaurant and café brands.
Katrina Group operates primarily in Singapore, with a presence in Malaysia and Indonesia. The company faces competition from other hospitality and F&B providers in the region.

Financial Statement Analysis

Income Statement

The company’s revenue decreased by 5% in FY 2024 compared to the previous year, primarily due to a decline in the Hospitality segment. The company’s net profit also decreased by 15% during the same period.

Balance Sheet

As of 31 December 2024, the company’s net liabilities and current liabilities exceeded its net assets and current assets by \$3,967,000 and \$19,048,000, respectively. This indicates a material uncertainty about the company’s ability to continue as a going concern.

Cash Flow Statement

The company’s cash flow from operating activities was positive, but the overall cash position declined due to significant cash outflows for investing and financing activities.

Key Findings

The key findings from the financial statement analysis are: – The company’s financial performance has deteriorated, with a 15% decline in net profit. – The company’s financial position is weak, with net liabilities and current liabilities exceeding net assets and current assets. – There is a material uncertainty about the company’s ability to continue as a going concern.

Recommendation

Based on the financial information provided in the report, we would not recommend investing in Katrina Group Ltd. at this time. The company’s financial position and performance have significantly deteriorated, and there is a material uncertainty about its ability to continue as a going concern.
Investors currently holding the stock may want to consider selling their shares to minimize potential losses. Investors not currently holding the stock should refrain from investing in Katrina Group Ltd. until the company’s financial situation improves and the material uncertainty about its going concern is resolved.

Disclaimer

This report is based solely on the information provided in the financial statements and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial professionals before making any investment decisions.

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