General Beltings Holdings Limited recorded a strong rebound in performance for the half year ended 30 June 2025, underpinned by higher revenues, improved pricing and a strategic shift to reporting in United States dollars. 

Despite a decline in sales volumes, the industrial group delivered firmer profitability and a strengthened balance sheet, signalling resilience in a challenging operating environment.

Revenue surged to US$2.24 million during the period, up from US$1.60 million in the comparative half of 2024, while profit for the period rose to US$80,852 from US$57,620 previously. 

Gross profit improved to US$893,547, reflecting tighter cost controls and a more favourable product mix. Basic earnings per share increased to US$0.00015, reinforcing the company’s return to growth.

Management said the performance demonstrated the group’s ability to protect margins even as volumes declined by 10% to 421 metric tonnes. 

“While volumes softened, our pricing discipline and improved product mix enabled us to deliver stronger revenue and profitability,” the company said in its interim commentary. 

“This reflects deliberate efforts to focus on higher-value segments and operational efficiencies.”

The balance sheet showed steady improvement, with total assets rising to US$5.55 million from US$5.11 million at the end of December 2024. Growth was largely driven by higher inventories and trade receivables, aligned with increased trading activity. 

Total equity expanded to US$3.45 million, supported by retained earnings from the period’s profit, while liabilities increased to US$2.10 million as the business funded higher working capital requirements.

Cash flows, however, came under pressure as rising receivables absorbed liquidity. The Group recorded a net cash outflow of US$806 from operating activities, compared to an inflow of US$70,658 in the prior year. 

Management attributed this to timing differences linked to expanded sales. “The increase in trade receivables reflects higher activity levels and customer credit cycles, rather than any deterioration in collections,” the company said.

A major development during the period was the adoption of the United States dollar as the Group’s functional and reporting currency with effect from 1 January 2025. Management said the move was necessary to reflect the economic reality of the business.

 “Given that the majority of our transactions are denominated in USD, this change provides greater transparency and stability in reporting our financial performance,” the Group noted.

General Beltings expressed optimism about demand prospects in the second half of the year, particularly from infrastructure-related projects. 

Management said the ongoing thermal power infrastructure development programme is expected to stimulate demand for the Group’s products. 

In addition, strategic exposure to the fertiliser value chain and a potential recovery in the hospitality sector are expected to support growth in its General Beltings and Cernol Chemicals divisions.

Despite the improved outlook, the company flagged persistent risks, including elevated logistics costs driven by geopolitical tensions and continued volatility in global trade policies. Locally, competition for foreign currency and pricing pressures remain a concern for manufacturers. 

“While policy stability has helped on inflation and exchange rates, competition from cheaper imports continues to squeeze local margins,” management said.

The board resolved not to declare an interim dividend, opting instead to conserve cash to support operations and future growth initiatives. As at 30 June 2025, cash and cash equivalents stood at US$36,443.