Financial Report Analysis: Spackman Entertainment Group Limited
Business Description
Spackman Entertainment Group Limited is a Singapore-registered company primarily engaged in the film production and entertainment business. The company operates in the entertainment industry, specifically in film production.
Company’s Core Business Operations and Segments
The company’s core business operations include film production and entertainment. However, the specific business segments and geographic footprint are not detailed in the report.
Position within the Industry and Competitors
The report does not provide detailed information about the company’s position within the industry, its competitors, or market share. However, it mentions that the company has a strong balance sheet position.
Revenue Streams, Customer Base, Supply Chain, and Competitive Advantage
The company’s revenue streams primarily come from its film production business. The report mentions that the movie “The Apple of my Eye” was released in February 2025, which could contribute to future revenue. The customer base, supply chain, and competitive advantage are not explicitly stated.
Financial Performance and Analysis
Income Statement
The company reported a loss of USD348,971 for the financial year ended 31 December 2024, compared to a loss of USD8,682,215 in 2023.
Balance Sheet
The Group’s net assets and net current assets as at 31 December 2024 were USD20,532,496 and USD17,697,751, respectively.
Cash Flow Statement
The company had an operating cash outflow of USD2,277,246 (2023: USD5,470,404) for the financial year ended 31 December 2024.
Key Findings and Risks
The company incurred a net loss of USD348,971 for the financial year ended 31 December 2024.
The Group recognised a loss for the financial year of USD348,971 (2023: USD8,682,215) and operating cash outflow of USD2,277,246 (2023: USD5,470,404).
The company’s cash flow budget indicates that it will be able to generate sufficient cash flow in the next 12 months to meet its cash flow requirements.
Compelling Reasons for Investor Action
The company’s strong balance sheet position and cash flow projections indicate that it may be able to continue as a going concern.
The movie “The Apple of my Eye” was released in February 2025, which could contribute to future revenue.
Recommendation for Current and Potential Investors
Based on the report, we recommend that investors exercise caution when dealing with the company’s securities. The company’s ability to continue as a going concern is uncertain, and there are risks associated with its ability to generate sufficient cash flow.
For current holders: Hold or accumulate the stock if you believe the company can turn its financial performance around, given its strong balance sheet position and potential for future growth.
For potential investors: We recommend exercising caution and closely monitoring the company’s future financial performance. It is essential to consider the risks associated with the material uncertainty related to going concern.
Disclaimer
This recommendation is based solely on the information provided in the report and should not be considered as investment advice. Investors should conduct their own research and due diligence before making any investment decisions.
Report Details
Date of report: 15 April 2025
Financial year: 31 December 2024
The report was prepared by the company’s management and reviewed by its sponsor, Evolve Capital Advisory Private Limited.
Important Information
No dividend was proposed or declared.
The company’s financial statements for the period ended 31 December 2024 have been audited, and the auditor’s report has been included in the announcement.
Conclusion
In conclusion, while the company faces material uncertainty related to its going concern status, its strong balance sheet position and potential for future growth may present opportunities for investors. However, it is crucial to carefully weigh the risks and potential rewards before making an investment decision.
The financial report for the year ended 31 December 2024 indicates that the company has a material uncertainty related to its going concern status, but the management believes that the going concern basis of preparation of these financial statements remains appropriate.
We infer that investors should carefully consider the company’s financial situation and potential risks before making an investment decision.
Special Activities or Actions
The company is taking measures to ensure the timely release of films, which could contribute to its future revenue.
Net Profit Growth or Decline
The company reported a net loss of USD348,971 for the financial year ended 31 December 2024, compared to a loss of USD8,682,215 in 2023.
Recommendation Summary
Based on the information provided, we recommend that:
Current holders: Hold the stock and closely monitor the company’s future financial performance.
Potential investors: Exercise Caution and conduct thorough research before making an investment decision.
Please note that this analysis is based solely on the provided report and may not reflect the complete picture of the company’s financial situation and performance.
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