S$95.11m revenue and S$5.33m profit as Zicom reaches zero net gearing

Profit continues as project revenue falls

Zicom Group Limited (ASX:ZGL) has reached its third consecutive year of profit, but the result came with a sizeable contraction in activity. Revenue for the year ended 30 June 2026 fell 29.95% to S$95.11 million, while net profit attributable to shareholders declined 31.27% to S$5.33 million. Basic earnings per share dropped to 2.47 Singapore cents from 3.61 Singapore cents.

The main drag was the Green Energy, Gas & Marine Equipment segment, where revenue fell 69.55% to S$22.01 million after major gas-processing projects were completed and tender activity slowed following a change in government in the host country. The weakness was partly offset by Construction Equipment, up 16.45% to S$39.43 million, and Precision Engineering & Technologies, up 13.80% to S$33.39 million. The company’s earlier FY2026 profit forecast had anticipated a similar decline after the completion of major gas-processing EPC contracts.

Debt reduction takes priority over dividends

Zicom’s strongest financial improvement was on the balance sheet. Cash and bank balances rose to S$24.72 million, while the group reported zero net gearing under its non-IFRS measure, compared with 10.39% a year earlier. Finance costs nearly halved to S$1.06 million from S$2.09 million.

That headline should be read alongside the company’s remaining obligations. Interest-bearing liabilities included an S$8.72 million related-party loan from a major shareholder, carrying a fixed 5% interest rate, as well as S$2.5 million in short-term revolving loans and S$543,000 of bank overdrafts. Management said a further S$2 million repayment of the shareholder loan was planned, and that retirement of the remaining balance would take precedence over dividends and any future funding. The company’s FY2025 debt reduction had already reduced gearing from 37.75% to 10.39%.

Order book shifts toward automation and equipment

Confirmed orders were broadly stable at S$76.49 million, compared with S$76.13 million a year earlier. However, the composition is notable: S$48.71 million sits in Precision Engineering & Technologies, S$16.79 million in Green Energy, Gas & Marine Equipment and S$10.99 million in Construction Equipment. S$64.23 million of the total is scheduled for delivery in FY2027.

The company said its precision-engineering business had been pre-qualified as a selective supplier to major multinational companies involved in high-end chip production and testing. It also reported renewed demand for deck machinery as offshore drilling and production activity recovered. Neither development is yet presented as a confirmed increase in future revenue, but both point to areas management expects to support the next phase of activity.

FY2027 investment and shareholder approvals

Zicom plans to spend about S$2 million on capital expenditure in FY2027 to strengthen capacity and capabilities. At the same time, shareholders are being asked to consider a proposed issue of shares to executive chairman Giok Lak Sim in respect of part of his performance bonus. The proposed share component is valued at S$50,000 and remains subject to shareholder approval.

The immediate tension is therefore clear: Zicom has an order book that provides substantial scheduled work, but its latest earnings were lower and its capital allocation policy remains defensive. The next test will be whether the S$64.23 million scheduled for FY2027 converts into delivery and cash generation quickly enough to fund capacity investment, reduce the shareholder loan and eventually reopen the question of dividends.