Health and Plant Protein Group Limited (HPP) reported a reduced net loss of $528,000 for FY2025, following the receipt of final proceeds from its US divestment. The Board signals plans to return capital and pursue new corporate opportunities.
- Net loss narrowed to $528,000 in FY2025 from $801,000 in prior year
- No operating revenue post-sale of US subsidiary HPP America, Inc. in April 2023
- Final US tax refund of US$3.37 million received in May 2025, boosting cash reserves to $5.77 million
- Board confirms intention to return surplus capital via buy-back or capital return
- Trading remains suspended; new corporate opportunities under confidential discussion
Context of the Year
Health and Plant Protein Group Limited (ASX – HPP) closed the 2025 financial year in a holding pattern, reporting a net loss after tax of $528,000, an improvement from the $801,000 loss recorded in 2024. This marks the second full year since HPP divested its US-based subsidiary, HPP America, Inc., in April 2023, a move that effectively ended its operating activities.
Finalising the Divestment
The company’s focus during FY2025 was largely on concluding the financial aspects of the US sale, particularly the recovery of a tax refund held by the US Internal Revenue Service (IRS). After protracted delays, HPP received the net repayment of US$3.37 million (approximately A$5.2 million) in May 2025. This inflow significantly bolstered the Group’s cash position, which stood at $5.77 million at year-end, up from $1.29 million the previous year.
Financial Performance and Capital Structure
With no operating revenue during the year, the Group’s loss was driven primarily by administrative expenses and finance costs. The weighted average number of shares declined slightly due to prior year buy-backs, and earnings per share improved from a loss of 0.66 cents to 0.47 cents per share. The Group maintains a clean balance sheet with no debt, and net tangible assets backing per share stood at 5 cents.
Strategic Outlook
The Board, led by Executive Chair Albert Tse, reaffirmed its dual strategy – to return a portion of surplus net assets to shareholders through mechanisms such as an equal access off-market share buy-back or capital return, and to actively pursue new corporate opportunities that could create shareholder value. While no specific transactions are yet ready for disclosure, the Board anticipates concluding discussions with potential counterparties in the near term.
Governance and Market Status
Trading in HPP shares remains suspended since August 2023, limiting immediate market activity. The company’s financial statements were audited by Ernst & Young with no qualifications, underscoring the transparency and compliance of its reporting. The Board continues to engage with shareholders and stakeholders through regular updates and maintains a conservative approach to capital management.
Bottom Line?
With final sale proceeds secured and a clear capital return strategy, HPP’s next moves will be closely watched as it seeks to redefine its corporate purpose.
Questions in the middle?
- What specific corporate opportunities is HPP exploring, and when might these be announced?
- How will the Board structure the planned capital return to shareholders?
- What is the outlook for lifting the trading suspension and restoring liquidity for investors?