G & M Holdings 2025 Results: Profit Jumps 28.7% Despite 11.4% Revenue Dip; No Final Dividend Declared

Bulletin Express
Mar 26

G & M Holdings Limited released its audited results for the year ended 31 December 2025, showing a resilient bottom-line performance amid a softer construction market in Hong Kong.

Financial Performance • Revenue fell 11.4% year on year to HK$380.42 million, reflecting fewer large-scale design-and-build projects. • Gross profit slipped 12.5% to HK$100.14 million; gross margin held broadly steady at 26.3% (2024: 26.7%). • Profit before tax climbed 16.7% to HK$65.25 million, while net profit surged 28.7% to HK$55.57 million, buoyed by a HK$29.36 million impairment charge booked in 2024 that did not recur. • Basic and diluted earnings per share rose to 5.5 HK cents from 4.3 HK cents. • The Board recommended no final dividend; a HK3.5 cents special dividend was declared during the year.

Segment Trends • Design-and-build revenue declined to HK$322.00 million, now 84.6% of total turnover (2024: 94.3%). • Repair and maintenance revenue more than doubled to HK$58.42 million, lifting its revenue share to 15.4%.

Cost & Expense Dynamics • Administrative and other operating expenses increased 15.8% to HK$42.39 million, mainly due to greater resources devoted to tendering activities. • Finance costs eased to HK$0.45 million (2024: HK$0.74 million) as the Group remained debt-free.

Balance Sheet & Liquidity • Cash and bank balances expanded to HK$387.30 million (2024: HK$222.72 million) after the maturity of HK$112.63 million in term deposits. • With no bank borrowings, gearing stayed at zero. • Net current assets improved to HK$292.44 million, up 7.9% from a year earlier. • Trade receivable turnover shortened markedly to 31.4 days (2024: 64.3 days).

Operational Update • Outstanding contracted work totaled HK$193.30 million at end-2025, with completion dates running to 2027. • Post-year-end, two podium façade contracts worth HK$127.40 million were secured. The Group is also bidding for five projects collectively valued at about HK$323.00 million.

Strategic Outlook Management flagged continued industry headwinds, citing intense competition and limited new large-scale construction opportunities. The Group plans to: 1. Prioritise repair and maintenance contracts to diversify income streams. 2. Maintain stringent cost controls and lean staffing (headcount reduced to 91 from 106). 3. Preserve balance-sheet strength to support bidding for forthcoming projects.

Other Highlights • No significant acquisitions, disposals, or capital commitments were recorded in 2025. • No assets were pledged; contingent liabilities remain nil. • The Group is pursuing legal action related to the previously impaired Mongolian coal-mine acquisition.

G & M Holdings continues to balance prudent financial management with selective project expansion, aiming to sustain profitability amid a challenging construction environment.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10