Dear Shareholder:
On behalf of the Board of Directors, I am pleased to present the Annual Report of Captii Limited for the financial year ended 31 December 2025.
Navigating a Year of Transition and Resilience
2025 was a year of disciplined execution amidst a complex market landscape. While the group has not yet returned to overall profitability, our strategic focus on operational efficiency and fundamental strengthening is yielding tangible results. Despite the reported net loss, the underlying health of our core operations has improved significantly, providing a clearer path toward sustainable growth.
Operational Excellence: Achieving Pro-Forma Breakeven
The headline figures for 2025 tell a story of significant recovery in our core business. Although group revenue moderated to S$15.9 million (from S$17.6 million in 2024), we achieved an expansion in gross profit margins—increasing from 53.4% to 63.8%. This 10.4 percentage point jump was driven by a more favorable sales mix and improved cost management across both GlobeOSS and Unifiedcomms.
Most notably, our loss before tax narrowed by over 50%, falling to S$4.2 million compared to a S$8.5 million loss in the previous year. It is important to highlight that this loss was driven almost entirely by non-cash fair-value adjustments and venture portfolio devaluations totaling S$4.2 million. Excluding these non-cash accounting adjustments, the group would have achieved a breakeven position at the profit before tax level.
Segment Performance and Recurring Revenue
Our revenue streams continue to transition toward higher- quality, sustainable models:
- Unifiedcomms remains our primary engine, contributing S$9.9 million. While we faced some revenue headwinds in managed service contracts, our focus remains on long- term sustainability over short-term volume.
- GlobeOSS reported revenue of S$6 million. Across both units, we are prioritising margin expansion and service quality.
We continue to strengthen our managed services business, which contributed S$10.2 million this year. This recurring revenue remains the bedrock of our long-term strategy, providing the stability needed to navigate market volatility.
Financial Strength and Strategic Patience
A key highlight of the year is the further strengthening of our balance sheet. Through disciplined financial management, our cash and cash equivalents grew to S$13.7 million (up from S$10 million in 2024).
This “dry powder” is a strategic asset. While we actively evaluated several investment opportunities throughout the year, we chose not to execute any new deals in 2025. In a high- valuation environment, we believe strategic patience is a virtue. We remain committed to identifying strategic investments that align with our long-term vision.
Looking Ahead
Our adjusted return on equity (ROE) of -1.6% (excluding exceptional losses) shows that we are very close to the tipping point of positive returns. Moving forward, we will continue to sharpen our operational focus, invest in our managed services capabilities, and leverage our strong cash position to capture regional opportunities.
I extend my sincere appreciation to our employees for their resilience and commitment, our shareholders for their trust and patience, and the regulatory bodies and government agencies for their support. Your continued belief in our vision drives us forward.
Wong Tze Leng
Executive Chairman