⚡ Flash Summary

ICC Industries Limited reported an after-tax loss of Rs. 16.538 million for the year ended June 30, 2025, compared to a loss of Rs. 11.648 million in the previous year. Revenue decreased slightly to Rs. 50.148 million from Rs. 52.974 million due to reduced rental occupancy. The company continues to face material uncertainty regarding its ability to continue as a going concern, as current liabilities exceed current assets by Rs. 270.829 million. Directors are focused on consolidating the company’s position through repaying borrowings, selling inefficient machinery, and renting out vacant buildings.

📌 Key Takeaways

• 📉 After-tax loss increased to Rs. 16.538 million in 2025 from Rs. 11.648 million in 2024.
• Revenue decreased to Rs. 50.148 million from Rs. 52.974 million in the prior year, a 5.3% decrease.
• Gross profit decreased to Rs. 30.058 million from Rs. 32.885 million.
• Operating loss widened to Rs. 10.077 million from Rs. 5.335 million.
• Finance costs decreased slightly to Rs. 136,876 from Rs. 139,646.
• Change in fair value of investment property decreased to Rs. 4.256 million from Rs. 5.010 million.
• Accumulated losses increased to Rs. 777.989 million.
• Loss per share worsened to (Rs. 0.55) from (Rs. 0.39).
• Revenue decrease is attributed to reduced rental occupancy of factory premises.
• Admin expenses increased due to enhanced minimum wage requirements.
• The company is focusing on warehouse services to improve performance.
• ⚠️ Current liabilities exceeded current assets by Rs. 270.829 million, indicating a material uncertainty.
• Directors have provided interest-free loans amounting to Rs. 761.328 million.
• Auditors draw attention to going concern uncertainty but do not qualify their opinion.
• 📊 No dividend is recommended for the period ended June 30, 2025.

🎯 Investment Thesis

Given the ongoing losses, liquidity challenges, and reliance on director’s loans, a ‘HOLD’ rating is appropriate. The company’s ability to turn around its operations is highly uncertain, and the risks are substantial. A price target cannot be reasonably established due to the high degree of uncertainty.