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Crest Group's Profit Masks Cash Flow Woes
28 Nov, 2025
Summary
- Crest Group Berhad reported a RM10.7m profit but burned RM18m in cash.
- The company's accrual ratio for the twelve months to September 2025 was 0.46.
- Unusual items reduced Crest Group's profit by RM1.9m in the last twelve months.
Crest Group Berhad's financial performance reveals a concerning gap between reported profits and actual cash generation. Despite announcing a profit of RM10.7 million for the twelve months ending September 2025, the company experienced a significant cash outflow, consuming RM18 million in free cash flow during the same period.
This situation is underscored by a notable accrual ratio of 0.46, a metric suggesting that a substantial portion of the company's profit is not supported by readily available cash. While a previous year showed positive free cash flow of RM857,000, the recent trend is a significant reversal.
The company's profit was further impacted by RM1.9 million in unusual items, which negatively affected its earnings. Although such one-off expenses are often not repeated, the combination with weak cash flow warrants investor attention and raises questions about future profitability.
