SOMERLEY CAP (08439) has released an announcement indicating that the Group expects to record an after-tax profit of approximately HK$2 million for the year ending March 31, 2026 (2025: after-tax loss of approximately HK$13.8 million), achieving a turnaround from loss to profit.

The shift to profitability is primarily attributed to (i) a significant increase in corporate finance activity driven by a broad stock market rebound, leading to a revenue increase of approximately HK$4.6 million; (ii) a net reduction in employee benefit costs of approximately HK$9.2 million due to the successful implementation of organizational streamlining measures; (iii) a decrease in impairment losses recognized for trade receivables and intangible assets of approximately HK$1.1 million; and (iv) other overall cost savings achieved from depreciation of right-of-use assets and other operating expenses.