HRnetGroup Limited posted a net profit after tax of S$52.9 million for the 12 months ended 31 Dec 2025, up 14.3 per cent year-on-year, driven by tighter selling, general and administrative (SG&A) cost control and higher fair-value gains on financial assets.

Basic earnings per share rose to 5.21 cents from 4.53 cents a year earlier. The board proposed a one-tier tax-exempt final dividend of 2.20 cents per share, 10 per cent higher than the prior-year final payout of 2.13 cents. Including the 2.00-cent interim dividend paid on 2 Sep 2025, the total FY2025 distribution will rise to 4.20 cents a share, representing a 5.6 per cent yield based on the 31 Dec 2025 close and a 78 per cent payout of net profit. Payment and books-closure dates will be announced after shareholder approval at the upcoming AGM.

Revenue in FY2025 edged 3.0 per cent higher to S$584.0 million. Flexible Staffing (FS) contributed 89.7 per cent of group turnover, climbing 3.2 per cent to S$524.1 million as average monthly contractor numbers increased 5.6 per cent to 16,421. Professional Recruitment (PR) revenue added 1.6 per cent to S$55.8 million, while its gross profit (GP) rose 1.3 per cent to S$55.6 million, yielding a 99.6 per cent GP margin. Group GP inched up 0.6 per cent to S$122.9 million; the blended GP margin eased to 21.0 per cent from 21.6 per cent as the larger FS share diluted overall yield.

Other income surged 44.5 per cent to S$22.3 million, lifted by S$9.3 million in fair-value gains on financial assets and gold, S$2.3 million in government grants and a S$0.8 million gain on asset disposals, partly offset by lower interest income and an absence of prior-year accrual reversals. SG&A expenses inched up 1.3 per cent to S$82.7 million, as modest staff-cost increases and foreign-exchange losses were cushioned by lower facility and depreciation charges following office consolidation. Consequently, profit before tax expanded 11.6 per cent to S$62.5 million.

By geography, Singapore remained the largest market with revenue of S$367.3 million (-2.2 per cent YoY), while North Asia posted 11.9 per cent growth to S$183.6 million. Revenue from the rest of Asia climbed 22.2 per cent to S$33.1 million.

Looking ahead, management highlighted a cautious hiring environment and intense competition in mid-level recruitment. The group is prioritising three initiatives: 1) shifting its PR operations towards higher-margin senior executive search, 2) accelerating contractor growth in overseas markets to build its FS base, and 3) scaling recurring income streams through its workforce-management platform, Octomate, which is gaining traction among government and multinational clients.

The group ended the year with cash and cash equivalents of S$262.9 million, up S$4.5 million after operating inflows offset investment and financing outflows. Net asset value stood at 40.65 Singapore cents per share, compared with 38.65 cents a year earlier.