The filing reveals severe margin compression as subcontractor costs ($678K) replaced direct labor as the primary cost driver. With cash down to $75K and $257K tied up in related-party receivables, liquidity is a near-term concern. Monitor next quarterly report for revenue sustainability and cash burn rate; the extreme profit swing makes GAAP earnings unreliable for valuation.
Price Chart
Executive Summary
Barentsz Capital Ltd filed its first audited annual report on Form 20-F for the fiscal year ended April 30, 2026, covering financial results alongside post-IPO disclosures. Revenue grew 6.4% YoY to $1.57M, but gross profit collapsed 60% due to a sharp rise in subcontractor costs, swinging operating income from a $1.14M profit to an $81K loss. The company also recorded a $209K allowance for expected credit losses and ended the year with only $75K in cash, down 81% from the prior year.
Key Facts
- Revenue for FY2026 was $1,566,899, up 6.4% from $1,472,590 in FY2025.
- Gross profit collapsed to $506,508 from $1,273,516, a decline of 60.2%.
- Operating income swung from a gain of $1,136,095 in FY2025 to a loss of $81,041 in FY2026.
- Net income attributable to shareholders fell 79.4% to $213,193 from $1,032,798.
- Diluted EPS decreased to $0.01 from $0.05.
- Recorded a $208,974 allowance for expected credit losses, nearly all of the gross AR balance.
- Cash and cash equivalents fell 80.5% to $75,226 from $386,614.
- The company's IPO on Form F-1 became effective November 25, 2025; the 20-F was filed under Rule 15d-2 to provide certified financial statements.
- 9,002,000 Class A ordinary shares (1 vote each) and 10,998,000 Class B ordinary shares (20 votes each) outstanding.
Financial Impact
Revenue grew by $94,309 but gross profit fell by $767,008, operating income declined by $1,217,136, and net income dropped by $824,788. Cash balance decreased by $311,388.
Risk Factors
- Gross margin collapsed to 32.3% from 86.5% in FY2025, driven by a 5.3x increase in cost of services.
- Cash burn is accelerating — the company had only $75K in cash at year-end versus $387K the prior year.
- A $209K allowance for expected credit losses (91% of gross AR) signals collection problems.
- Disposal of wholly owned subsidiary Barentsz HK in May 2025 removed a revenue-producing entity.
- The $256K receivable from a related party (Barentsz Investments Limited) has no fixed repayment terms.
- The company is a micro-cap with no analyst coverage and limited public float on NASDAQ.
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 20-F Filing (Primary) | 0001493152-26-036455 |
| Exhibit: ex12-2.htm | 0001493152-26-036455 |
| Exhibit: ex12-1.htm | 0001493152-26-036455 |
| Exhibit: ex13-1.htm | 0001493152-26-036455 |
| Exhibit: ex13-2.htm | 0001493152-26-036455 |
| Document: 0001493152-26-036455-index-headers.html | 0001493152-26-036455 |
| Document: 0001493152-26-036455-index.html | 0001493152-26-036455 |
| Document: 0001493152-26-036455.txt | 0001493152-26-036455 |
US Market Status
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