Primech Holdings Limited (PMEC), a leading provider of technology-driven facility services in Singapore, reported a 5.1% increase in revenue for the fiscal year ending March 31, 2024, bringing its total revenue to $72.5 million, up from $69.0 million the previous year.
The growth was driven primarily by new contracts with government clients, including the start of services for Singapore Changi Airport. Primech Holdings Limited’s CEO, Kin Wai Ho, expressed optimism about the company’s future, highlighting the $144.4 million in future contracted revenues as a sign of strong demand for its services.
He also pointed to the promising commercial interest generated by the company’s new Primech AI subsidiary, which has developed an AI-powered autonomous toilet-cleaning robot. Mr. Ho emphasized that these achievements reflect the company’s focus on innovation and growth, positioning it for long-term success.
Primech Posts Modest Revenue Growth Amid Rising Costs and Sector Recovery
The company’s facilities services segment saw slight growth, with revenues rising from $55.8 million to $56.0 million, largely thanks to the Changi Airport contract.
Meanwhile, the company experienced a significant recovery in its stewarding services, where revenue jumped from $7.6 million to $10.2 million, following the easing of COVID-19 restrictions that revitalized Singapore’s hospitality sector.
Cleaning services for office spaces also saw an increase, growing from $4.9 million to $5.8 million as demand returned to pre-pandemic levels.
Despite the revenue growth, the company faced higher direct costs, which rose by 2.6%, mainly due to increasing labor expenses. Labor costs made up more than 85% of Primech’s direct costs for the year, although the company was able to mitigate some of these expenses with government grants.
Overall, Primech Holdings Limited (NASDAQ:PMEC) posted a net loss of $3.2 million for the fiscal year, slightly higher than the $2.5 million loss in the previous year, as the company continued to invest in growth initiatives and operational expansion.
Strong Revenue Growth Forecast Through 2027, Positioned for Long-Term Profitability
Looking ahead, Primech Holdings Limited (NASDAQ:PMEC) expects strong revenue performance from its existing contracts, forecasting $62.9 million in revenue for FY 2025, $71.7 million for FY 2026, and $9.8 million from contracts extending into FY 2027 and beyond.
Financially, the company remains in a stable position, with $7.6 million in cash and cash equivalents as of March 31, 2024. However, cash used in operations increased due to prepaid services with vendors.
Total assets grew to $45.5 million, while total liabilities stood at $30.5 million. The company’s stockholders’ equity rose to $15.0 million, bolstered by its successful IPO and prudent debt management.
As Primech Holdings Limited (NASDAQ:PMEC) continues to expand its service offerings and invest in technology, the company is well-positioned to capitalize on growing demand for automated and sustainable solutions in the facilities management industry.
CEO Kin Wai Ho remains confident in Primech Holdings Limited’s ability to drive sustainable growth and profitability in the coming years, leveraging its innovative approach to meet the evolving needs of its clients.
Our future looks very promising; we have amassed $144.4 million in future contracted revenues, demonstrating the continued demand for our services, and our recently announced Primech AI operating subsidiary has already generated strong commercial interest in its fully autonomous AI-powered toilet-cleaning robot… We remain confident in our ability to drive sustainable growth and profitability in the years to come.”
Kin Wai Ho, Primech CEO
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