Cloudaron Group Berhad’s Latest Financials: Navigating a Shifting Landscape
Hello fellow investors and tech enthusiasts! Today, we’re diving deep into the latest financial performance of Cloudaron Group Berhad, a company listed on Bursa Malaysia’s LEAP Market. This market is designed for sophisticated investors, signifying a potentially higher investment risk, which makes understanding these reports even more crucial.
Cloudaron has just released its unaudited condensed consolidated financial statements for the second half-year ended 31 March 2025. While the company recorded a positive profit before tax for this recent six-month period, a closer look at the full-year figures reveals a more complex picture, marked by strategic shifts and market challenges. Let’s break down the numbers and see what’s shaping Cloudaron’s journey.
Core Data Highlights: A Tale of Two Halves?
Overall Financial Performance
Cloudaron’s financial year end has recently changed from 31 March to 30 September, effective from 18 April 2025. This means the next financial year will be an extended 18-month period. For now, let’s analyze the reported periods.
Current 6-Month Period (H2 FY2025) vs. Previous Year Corresponding Period (H2 FY2024)
For the individual six months ended 31 March 2025:
- Revenue: RM56.97 million, up 24.04% from RM45.93 million in the previous year’s corresponding period. This positive growth is primarily driven by the Enterprise Solutions business.
- Profit Before Tax (PBT): RM3.83 million, a significant turnaround from a Loss Before Tax (LBT) of RM17.82 million in the prior year. This impressive swing of RM21.65 million (121.49% improvement) is largely attributed to the absence of non-cash goodwill impairments that impacted the previous period.
- Net Profit for the period: RM3.55 million, compared to a net loss of RM17.96 million previously.
- Basic Earnings Per Share (EPS): 0.52 sen, a positive figure contrasting with a loss of 2.16 sen in the comparative period.
Current 12-Month Period (FY2025) vs. Previous 12-Month Period (FY2024)
Looking at the cumulative 12 months ended 31 March 2025:
- Revenue: RM80.20 million, a decrease of 49.89% from RM160.05 million in the previous 12-month period. This significant decline is mainly due to a reduction in revenue from the Digital Platforms segment.
- Loss Before Tax (LBT): RM25.25 million, an increase in loss by 51.47% from RM16.67 million in the previous 12-month period. This is primarily due to a substantial trade receivable impairment of RM19.80 million and lower gross profit margins.
- Net Loss for the period: RM25.50 million, compared to a net loss of RM17.30 million previously.
- Basic Earnings Per Share (EPS): (2.97) sen, indicating a larger loss per share compared to (2.08) sen in the prior year.
Current 6-Month Period (H2 FY2025) vs. Immediate Preceding 6-Month Period (H1 FY2025)
Comparing the recent half-year to the one immediately before it:
- Revenue: RM56.97 million, a substantial increase of 145.14% from RM23.24 million in the immediate preceding period. This surge is primarily driven by the strong performance of the Enterprise Solutions business.
- Profit Before Tax (PBT): RM3.83 million, a remarkable rebound from a Loss Before Tax (LBT) of RM29.08 million in the immediate preceding period. This significant improvement of RM32.91 million (113.17% increase) is mainly due to the absence of trade receivable impairment in the prior period and gains from the disposal of shares in subsidiaries in the current period.
Segmental Performance: A Shifting Mix
Cloudaron’s revenue streams are categorized into Enterprise Solutions, Infrastructure Services, and Digital Platforms. Here’s how they performed for the cumulative 12 months ended 31 March 2025:
| Business Segment | 12 Months Ended 31.03.2025 (RM’000) | 12 Months Ended 31.03.2024 (RM’000) | Change (%) |
|---|---|---|---|
| Enterprise Solutions | 67,785 | 35,560 | +90.62% |
| Infrastructure Services | 1,636 | 2,238 | -26.99% |
| Digital Platforms | 10,780 | 122,251 | -91.18% |
| Total Revenue | 80,201 | 160,049 | -49.89% |
The significant drop in overall revenue is largely attributable to the Digital Platforms segment, which saw a massive 91.18% decline. Conversely, the Enterprise Solutions segment demonstrated robust growth, nearly doubling its revenue, indicating a shift in the company’s core revenue drivers.
Geographical Revenue Breakdown
For the cumulative 12 months ended 31 March 2025, Singapore remains the largest contributor, though its revenue declined significantly:
| Region | 12 Months Ended 31.03.2025 (RM’000) | 12 Months Ended 31.03.2024 (RM’000) | Change (%) |
|---|---|---|---|
| Singapore | 75,444 | 143,015 | -47.25% |
| Malaysia | 3,201 | 14,817 | -78.40% |
| North America | 1,556 | 1,805 | -13.79% |
| Thailand | – | 412 | -100.00% |
| Total Revenue | 80,201 | 160,049 | -49.89% |
Revenue from both Singapore and Malaysia experienced substantial declines, reflecting the overall reduction in Digital Platforms business, which likely had a strong presence in these regions previously.
Financial Health: Balance Sheet & Cash Flow
As at 31 March 2025, Cloudaron’s total assets stood at RM59.92 million, down from RM103.89 million a year ago. This reduction is primarily due to a significant decrease in trade and other receivables, indicating better collection or reduced business volume, and a decrease in intangible assets.
Total equity also saw a decline to RM38.29 million from RM64.21 million, leading to a Net Assets Per Share of 4.61 sen (down from 7.73 sen). This reflects the cumulative losses for the year.
From a cash flow perspective, the company generated RM1.35 million from operating activities for the 12 months ended 31 March 2025, a positive sign compared to RM0.52 million in the previous year. However, net cash used in financing activities was RM2.37 million, mainly due to repayment of term loans, resulting in a net decrease in cash and cash equivalents of RM1.01 million for the period.
Strategic Direction: Restructuring for Future Growth
The Board of Directors remains optimistic about the growth of its current businesses. A key part of their strategy involves acquiring new global clientele to expand their reach. This is a crucial step, especially given the significant revenue decline in the Digital Platforms segment and the overall 12-month revenue. The focus on Enterprise Solutions, which showed strong growth, seems to be a strategic pivot.
Furthermore, Cloudaron is actively re-evaluating and restructuring its existing business units to optimize performance. This is evident from several recent disposals of subsidiaries:
- Disposal of 0966058 B.C. LTD. and Combustion Labs Media Inc. for RM10,000.
- Disposal of Clouddesk Technology Pte. Ltd. for USD925,000 (equivalent to RM4.09 million).
- Disposal of PT Prodatech Solusi Indonesia for SGD300.
- Disposal of Itwin Pte. Ltd. for SGD100.
These disposals suggest a strategic streamlining of operations, potentially divesting non-core or underperforming assets to focus resources on more promising areas like Enterprise Solutions. While such restructuring can lead to short-term disruptions, it aims to position the company for sustainable long-term growth.
The change in financial year end to 30 September also indicates a broader restructuring plan for the company, suggesting more significant changes might be underway to align its reporting and operational cycles with its new strategic direction.
Summary and
Cloudaron Group Berhad’s latest financial report presents a mixed bag. The second half of the financial year (H2 FY2025) shows a commendable return to profitability and strong revenue growth driven by Enterprise Solutions, a positive sign of operational improvement and strategic focus. However, the cumulative 12-month performance paints a different picture, with a significant decline in overall revenue and an increased net loss, largely due to a substantial impairment loss and a steep decline in the Digital Platforms segment.
The company’s strategic disposals of subsidiaries and the change in financial year end highlight an ongoing restructuring effort aimed at optimizing business units and focusing on new global clientele. While this is a necessary step for long-term health, it also introduces a period of transition and uncertainty. Investors should closely monitor the execution of these restructuring plans and the performance of the revitalized business segments.
It is important to remember that this analysis is for informational purposes only, and no are being made. Investing in LEAP Market companies carries inherent risks, and decisions should be made after careful consideration and due diligence.
Key points to consider moving forward:
- The significant full-year loss and increased loss compared to the previous year.
- The substantial decrease in total assets and equity, reflecting the impact of losses and strategic divestments.
- The ability of the Enterprise Solutions segment to consistently offset declines in other segments.
- The successful integration of new global clientele and the realization of benefits from the restructuring.
- The company’s cash flow management, especially as it navigates this transitional period.
From my perspective, Cloudaron is at a pivotal juncture. The positive shift in the latest half-year’s profitability is encouraging, suggesting that the strategic pivot towards Enterprise Solutions and the divestment of certain assets might be starting to bear fruit. However, the full-year picture, marked by significant losses and revenue decline, underscores the scale of the challenge ahead. The success of their restructuring and client acquisition efforts will be key determinants of their future trajectory.
What are your thoughts on Cloudaron’s strategic direction? Do you think the company can maintain this positive momentum from the last six months and return to overall profitability in the next few years? Share your insights in the comments below!
