SINGAPORE, July 24, 2024 (GLOBE NEWSWIRE) -- Primech Holdings Limited (Nasdaq: PMEC) ("Primech" or the "Company"), an established technology-driven facilities services provider in the public and private sectors operating mainly in Singapore, today announces its financial results for fiscal year ended March 31, 2024.

Mr. Kin Wai Ho, Chief Executive Officer of Primech, commented, “Primech is pleased to report strong financial results in our first year as a public company, with increased revenues for fiscal year 2024. 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. This has been a benefit of the investments we made in our future growth, including the development of new technologies and the expansion of our service offerings. We remain confident in our ability to drive sustainable growth and profitability in the years to come.”

Fiscal Year 2024 Financial Highlights

The Company’s revenues for FY 2024 and FY 2023 were approximately $72.5 million and $69.0 million, respectively, representing an increase of approximately 5.1%. The increase was mainly driven by new customers affiliated with the Singaporean government during the reporting period in our facilities services segment.

• Revenue from facilities services increased from approximately $55.8 million for FY 2023 to approximately $56.0 million for FY 2024. The increase was mainly driven by an increase in revenue from Singapore Changi Airport as we commenced our service for the airside of Singapore Changi Airport on November 1, 2023.
• Revenue from stewarding services increased from approximately $7.6 million for FY 2023 to approximately $10.2 million for FY 2024 and revenue from cleaning services to offices increased from approximately $4.9 million for FY 2023 to approximately $5.8 million for FY 2024. The increase was mainly due to the removal of COVID-19 travel restrictions by the Singapore government since April 2022, leading to a recovery in the hospitality industry, which resulted in an increase in demand of our stewarding services.

Direct costs and expenses for FY 2024 and FY 2023 were approximately $59.9 million and $58.4 million, respectively, representing an approximate increase of 2.6%.

Labor costs contributed approximately 85.4% and 84.2% of our direct costs for FY 2024 and FY 2023, respectively, amounting to approximately $51.2 million and $49.2 million, respectively, where employee benefit expense — salaries was the largest component of labor costs for both years.

Approximately $2.6 million and $4.2 million in Singapore government grants were netted against our direct costs and expenses in FY 2024 and FY 2023, respectively.

General and administrative expenses for FY 2024 and FY 2023 were approximately $13.2 million and $12.3 million, respectively, representing an approximate increase of 7.0%. Approximately $0.1 million and $0.2 million of government grants were set off against our general and administrative expenses in FY 2024 and FY 2023, respectively.

Net loss was $3.2 million for FY 2024, compared to a net loss of $2.5 million for FY 2023.

Estimated Revenues Under Contract Guidance

As of March 31, 2024, our contracted revenues were approximately $144.4 million. The following table provides a breakdown of the value of our contracted revenues which we estimate to fulfil in FY 2025, FY 2026 and FY 2027 onwards, subject to cancellations or other contractual changes which are not presently foreseeable:

		($’000)				(%)
Estimated amount of services contracted for at April 1, 2024 to be recorded in revenue for FY ending March 31, 2025			62,985				43.6
Estimated amount of services contracted for at April 1, 2025, to be recorded in revenue for FY ending March 31, 2026			71,651				49.6
Estimated amount of services contracted for at April 1, 2026 to be recorded in revenue for FY ending March 31, 2027 onwards			9,758				6.8
			144,394				100.0

Liquidity

Cash and cash equivalents were $7.6 million, as compared to $9.0 million at March 31, 2024, a decrease of $1.4 million for FY 2024, consisting of the following:

Cash used in operating activities for FY 2024 was $9.1 million, an increase of $5.9 million, compared to $3.2 million for FY 2023. The increase in cash used in operating activities mainly resulted from the increase in prepaid expenses and other current assets as we prepaid our vendor for services.

Cash used in investing activities for FY 2024 was $0.8 million, a decrease of $0.3 million, compared to $1.1 million for FY 2023. The decrease in cash used in investing activities resulting from less acquisition of property and equipment.

Cash provided by financing activities for FY 2024 was $8.2 million, an increase of $0.2 million, compared to $8.0 million for FY 2023. The increase in cash from financing activities resulted from net proceeds from issue of new shares for the IPO and partly offset by less new bank loans utilized and increase in repayment of bank loans in current period.

Balance Sheet Summary

Total assets were $45.5 million and total liabilities were $30.5 million at March 31, 2024.

Stockholders’ equity was $15.0 million at March 31, 2024, as compared to $8.8 million at March 31, 2023.

About Primech Holdings Limited
Headquartered in Singapore, Primech Holdings Limited is a leading provider of comprehensive technology-driven facilities services, predominantly serving both public and private sectors throughout Singapore, with expanding operations in Malaysia. With a legacy of excellence and innovation in the facilities services industry, Primech offers an extensive range of services tailored to meet the complex demands of its diverse clientele. The Company's service portfolio includes advanced general facilities maintenance, specialized cleaning solutions such as marble polishing and facade cleaning, meticulous stewarding services, and targeted cleaning services for offices and homes. Additionally, Primech manufactures and supplies various high-quality cleaning products under its brand, extending its reach and capabilities within the industry. Known for its commitment to sustainability and cutting-edge technology, Primech integrates eco-friendly practices and smart technology solutions to enhance operational efficiency and client satisfaction. This strategic approach positions Primech as a leader in the industry and a proactive contributor to advancing industry standards and practices in Singapore and beyond. For more information, visit www.primechholdings.com.

Notes to Guidance

All guidance set forth in this press release is guidance as to our anticipated results. Our final numbers may differ from this guidance and will depend upon factors affecting performance. These numbers should not be relied upon, and our final numbers will be reported in our Form 20-F for the year ending March 31, 2025 onward, which will be filed with the SEC on or before July 30, 2025 or a later date.

Investor Notice

Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described in our reports filed by the Company with the SEC. If any of these risks were to occur, our business, financial condition or results of operations would likely suffer. In that event, the value of our securities could decline, and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones facing us. Additional risks not presently known to us or that we currently deem immaterial may also impair our business operations. In addition, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to anticipate results in the future. See "Forward-Looking Statements" below.

Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, for example, statements about completing the acquisition, anticipated revenues, growth, and expansion. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. These forward-looking statements are also based on assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Investors can find many (but not all) of these statements by the use of words such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "likely to" or other similar expressions. All statements other than statements of historical facts included in this press release regarding the Company's strategies, prospects, financial condition, operations, costs, plans and objectives are forward-looking statements. Important factors that could cause the Company's actual results and financial condition to differ materially from those indicated in the forward-looking statements. Such forward-looking statements are subject to risk and uncertainties, including, but not limited to, those described in “Risk Factors,” “Operating and Financial Review and Prospects,” “Cautionary Note Regarding Forward-Looking Statements” in the Annual Report on Form 20-F filed with the SEC (File No. 001-41829) on July 23, 2024. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure that such expectations will be correct. The Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.

Company Contact:
Email: ir@primech.com.sg

Investor Relations Contact:        
Matthew Abenante, IRC
President                                        
Strategic Investor Relations, LLC                                         
Tel: 347-947-2093
Email: matthew@strategic-ir.com

***tables follow***

Primech Holdings Limited and Subsidiaries Consolidated Balance Sheets (in thousands except share data, U.S. dollars)
		As of March 31,
		2024				2023
Assets
Current assets
Cash and cash equivalents		$	7,648			$	9,072
Accounts receivable, net			18,452				15,364
Government subsidies receivable			1,368				1,684
Prepaid expenses and other current assets			3,810				1,175
Inventories			55				141
Total current assets			31,333				27,436
Non-current assets
Property and equipment, net			10,082				10,920
Right of use assets			3,406				3,128
Goodwill			667				693
Intangible assets, net			21				93
Deferred offering costs			—				553
Total assets		$	45,509			$	42,823
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued expenses		$	9,406			$	10,899
Notes payable-current portion			11,277				11,905
Lease liabilities-current portion			2,059				1,718
Total current liabilities			22,742				24,522
Non-current liabilities
Notes payable-long term			5,705				7,114
Lease liabilities-long term			1,752				1,628
Deferred tax liability			251				726
Total liabilities			30,450				33,990
Shareholders’ Equity
Common Stock, 35,550,000 and 32,500,000 shares issued and outstanding as of March 31, 2024 and 2023, respectively,			22,193				12,720
Additional paid-in capital			924				924
Accumulated other comprehensive income			923				947
Accumulated deficit			(9,049	)			(5,810	)
Total Primech Holdings Limited shareholders’ equity			14,991				8,781
Non-controlling interests			68				52
Total shareholders’ equity			15,059				8,833
Total liabilities and shareholders’ equity		$	45,509			$	42,823

Primech Holdings Limited and Subsidiaries Consolidated Statements of Operations and other Comprehensive Loss (in thousands except share and per share data, U.S. dollars)
		For the Years Ended March 31,
		2024				2023
Revenues
Revenues, net		$	72,524			$	69,026
Operating costs and expenses
Cost of revenue (net of $2,550 and $4,220 of government subsidies)			59,915				58,410
General and administrative expenses (net of $68 and $170 of government subsidies)			13,160				12,304
Sales and marketing expenses			2,231				279
Goodwill impairment			—				138
Total operating costs and expenses			75,306				71,131
Loss from operations			(2,782	)			(2,105	)
Other operating income, net (includes $202 and $202 of government subsidies)			211				271
Interest expense			(1,145	)			(723	)
Loss before income taxes			(3,716	)			(2,557	)
Income tax benefit			493				10
Net loss			(3,223	)			(2,547	)
(Profit)/ loss attributable to non-controlling interests			(16	)			15
Net loss attributable to PHL			(3,239	)			(2,532	)
Total foreign currency translation adjustment			(24	)			138
Comprehensive loss		$	(3,263	)			(2,394	)
Earnings loss per share:
Basic and diluted		$	(0.10	)		$	(0.08	)
Weighted average number of ordinary shares outstanding:
Basic and Diluted			33,929,000				32,500,000

Primech Holdings Limited and Subsidiaries Consolidated Statements of Cash Flows (in thousands except share data, U.S. dollars)
		For the Years Ended March 31,
		2024				2023
Cash flows from operating activities:
Net loss		$	(3,223	)		$	(2,547	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment			1,640				1,637
Amortization of right of use assets			2,203				1,716
Gain on disposal of property and equipment			(13	)			(186	)
Amortization of intangible assets			29				303
Impairment of Goodwill			—				138
Change in operating assets and liabilities:
Deferred tax liability			(454	)			—
Accounts receivable			(3,330	)			(3,152	)
Government subsidies receivables			290				(1,310	)
Prepaid expenses & other current assets			(2,657	)			152
Inventories			84				6
Accounts payable and accrued expenses			(1,329	)			1,970
Operating lease liability			(2,322	)			(1,683	)
Tax payable			—				(228	)
Net cash used in operating activities			(9,082	)			(3,184	)
Cash flows from investing activities:
Acquisition of property and equipment			(909	)			(2,004	)
Proceeds from sale of property and equipment			102				871
Net cash used in investing activities			(807	)			(1,133	)
Cash flows from financing activities:
Net Proceeds from issue of new shares			9,473				—
Deferred offering costs			545				236
Payment of finance lease liabilities			(86	)			(524	)
Repayment of bank loans			(3,163	)			(1,293	)
Proceeds from bank loans			1,412				9,908
Dividend paid			—				(317	)
Net cash provided by financing activities			8,181				8,010
Net (decrease) increase in cash and cash equivalents			(1,708	)			3,693
Effect of exchange rate changes on cash and cash equivalents			284				235
Cash and cash equivalents, beginning of year			9,072				5,144
Cash and cash equivalents, end of year		$	7,648			$	9,072
Supplemental disclosure of non-cash investing and financing transactions
Acquisition of equipment under finance leases			173				102
Recognition of Right of use assets and liabilities			2,553				3,380

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