Uscom Limited reported a 25% decline in revenue to $3.16 million and a 59% increase in net loss to $3.3 million for FY25, reflecting significant global headwinds. Despite setbacks, the company advanced new product approvals and secured funding to navigate ongoing challenges.
- 25% revenue decline to $3.16 million in FY25
- Net loss after tax increased 59% to $3.3 million
- No dividend declared; net tangible assets per share fell to zero
- Patent impairment charge of $341,612 due to weaker demand
- Raised $1.57 million in shareholder loans to support operations
Financial Performance Under Pressure
Uscom Limited’s preliminary results for the year ended 30 June 2025 reveal a challenging period marked by a 25% drop in revenues to $3.16 million and a sharp 59% increase in net loss after tax to $3.3 million. The company’s net tangible asset backing per share has fallen to zero, underscoring the financial strain amid a turbulent global environment.
The revenue decline contrasts with a 33% growth in the prior year, highlighting the impact of ongoing geopolitical instability, tariff wars, and constrained healthcare budgets worldwide. Notably, sales in China halved due to trade restrictions, while the US market contracted following reduced healthcare spending post-election. Europe’s healthcare budgets have been redirected towards military commitments, further dampening demand.
Operational Resilience and Strategic Advances
Despite these headwinds, Uscom has made operational strides, advancing the development of new devices and securing regulatory approvals for its BP+ central blood pressure monitor and SpiroSonic spirometers in key markets. The company also laid foundations for new distributor partnerships, particularly in Southeast Asia, which continued to meet growth forecasts and provided a regional buffer against global disruptions.
However, the company recorded a $341,612 impairment charge on patents, reflecting weaker-than-expected momentum and reduced future cash flow projections. This impairment signals the challenges Uscom faces in maintaining its historical growth trajectory in the current climate.
Financial Position and Funding
Uscom’s cash position tightened, with net operating cash outflows of $2.7 million and a year-end cash balance of $966,657. To bolster liquidity, the company raised $1.57 million through shareholder loans, including facilities from Executive Chairman Rob Phillips and an unrelated entity, Jetan Pty Ltd. These loans carry interest rates between 8% and 15% per annum, reflecting the company’s need for flexible financing amid uncertain market conditions.
The company did not declare a dividend for FY25, reflecting its focus on preserving cash and managing through the downturn. Shareholders will be watching closely for signs of a return to profitability and dividend payments as global markets stabilize.
Looking Ahead, Preparing for Recovery
Chairman Professor Rob Phillips emphasised that FY25 was a year of resilience and preparation, with Uscom strengthening its product portfolio, regulatory footprint, and distribution networks. The company remains optimistic about returning to its historical growth path once global conditions improve, citing the universal and resilient demand for healthcare technologies.
Uscom’s technologies address critical clinical needs across heart failure, sepsis, hypertension, and respiratory diseases, with applications spanning neonates to the elderly. The company’s strategic focus on innovation and market expansion positions it well for a rebound, though the timing remains dependent on geopolitical and economic developments.
Bottom Line?
Uscom’s FY25 results underscore the challenges of navigating global market disruptions, but its strategic investments and funding efforts set the stage for a potential recovery.
Questions in the middle?
- How will Uscom accelerate commercialization of its newly approved devices amid ongoing market uncertainties?
- What is the timeline for returning to profitability and resuming dividend payments?
- How might geopolitical tensions and trade restrictions continue to impact Uscom’s key markets, especially China and the US?