Sterling Group Holdings Limited (01825) announced its interim results for the six months ended 30 September 2025. Revenue was HK$179.16 million, down 34.5% from HK$273.59 million in the same period last year. Gross profit was HK$28.01 million, representing a gross margin of 15.6%. The company recorded a net loss of HK$7.61 million, compared to a net profit of HK$3.21 million in the prior year.

Selling and distribution costs dropped 34.5% to HK$7.29 million due to lower payroll expenses, while general and administrative expenses declined 4.5% to HK$23.19 million. Finance costs decreased slightly from HK$9.86 million to HK$9.70 million. EBITDA before expected credit loss was HK$4.65 million for the period, compared to HK$21.40 million in the same period last year.

Total assets stood at HK$232.76 million, with net assets of HK$21.67 million. Cash and cash equivalents amounted to HK$14.15 million. The gearing ratio was 293.6%, a reduction from 345.2% at 31 March 2025, mainly due to a decrease in bank borrowings. Management highlighted the challenging global trade environment and conservative purchasing trends among key customers, noting a shift in emphasis to cost control and business diversification, including expansion into digital marketing services in the People’s Republic of China.

No interim dividend was recommended for the period. Management will continue to monitor costs, strengthen client relationships, and seek new business opportunities to address industry headwinds and improve the group’s financial position.