CI1’s Revenue Collapse Forces Major Subsidiary Sell-Offs and Capital Return
CI1 reported a sharp 57% revenue decline in FY25 but reduced its comprehensive loss by 64% through strategic disposals and capital returns. The company’s financial services operations in Australia and Singapore faced tough market conditions, prompting a portfolio reshaping.
- 57% drop in total revenue to $645,531 in FY25
- 64% reduction in total comprehensive loss to $4.79 million
- Disposal of four underperforming subsidiaries, including BNPL and CIH
- Returned $1 million capital to shareholders from CIH disposal proceeds
- Net assets fell to $2.5 million; liabilities cut by 94%
Revenue and Losses Under Pressure
CI1’s preliminary final report for the year ended 30 June 2025 reveals a challenging year marked by a 57% plunge in revenue from continuing operations, down to $645,531 from $1.49 million the previous year. The company’s total comprehensive loss attributable to members narrowed significantly by 64%, from $12.39 million to $4.79 million, reflecting efforts to stem losses amid a difficult economic environment.
The financial services group, operating primarily in Australia and Singapore, faced headwinds including a slowing economy and intensified competition. Its AI-driven BNPL platform, Yozo Finance, saw revenue fall 34% to just $96,000, while Singapore-based Hup Hoe Credit’s revenue dropped 59% to $0.5 million, both subsidiaries recording losses.
Strategic Portfolio Restructuring
In response, CI1 undertook a strategic review and divested four underperforming subsidiaries during FY25. These included Chapter Two Holdings, BNPL International, OneStep Information Technology, and Credit Intelligence Holding. While disposals of partly owned subsidiaries like Chapter Two Holdings and OneStep generated modest gains, the BNPL disposal resulted in a loss. The standout was the sale of Credit Intelligence Holding for $1.5 million, yielding a gain of $438,648.
These moves significantly reduced the group’s liabilities by 94%, from $3.8 million to just $219,000, and lowered net assets to $2.5 million, down from $8.7 million the prior year. The company also returned $1 million to shareholders as a capital return from the proceeds of the CIH disposal, signaling a focus on shareholder value amid restructuring.
Operational Challenges and Outlook
The continuing operations remain under pressure, with losses before tax from continuing operations at $2.55 million, compared to $10.9 million the previous year. The company’s loan receivables and trade receivables have been impacted by write-offs and impairments, reflecting the tough credit environment. The full audited financial statements are pending, which may provide further clarity on the company’s financial position.
CI1’s management will need to navigate the ongoing economic downturn and competitive pressures in both the Australian and Singaporean markets. The disposal of loss-making subsidiaries may help streamline operations, but the company faces the challenge of rebuilding revenue streams and restoring profitability.
Bottom Line?
CI1’s FY25 results show a company in transition, cutting losses through disposals but still grappling with revenue declines and market headwinds.
Questions in the middle?
- Will CI1’s remaining operations stabilize or continue to face revenue pressure?
- How will the company deploy capital returned to shareholders to drive future growth?
- What strategic shifts will management pursue post-disposals to regain market share?
