Executive Summary
CLink Squared Limited delivered a revenue result of MYR 23.68 million for QQ4 2024, but reported a meaningful profitability gap with EBITDA of MYR -10.38 million and net income of MYR -11.27 million. The quarter benefited from positive operating cash flow of MYR 9.33 million and generated free cash flow of MYR 9.16 million, underscoring a robust liquidity profile despite and in part because of working capital dynamics. The balance sheet shows a strong liquidity cushion (cash and cash equivalents of MYR 59.72 million) and a net cash position after accounting for debt (net debt around MYR -54.49 million). However, the income statement is burdened by elevated operating and overhead costs, reflected in an operating margin of -46.26% and net margin of -47.60%, alongside a very high goodwill balance (MYR 191.91 million) relative to equity. This combination implies substantial earnings volatility and potential impairment considerations should the business environment deteriorate or if synergies from past acquisitions fail to materialize as expected.
Looking forward, management commentary (not available in the provided transcript) and sector dynamics in document management outsourcing suggest continued emphasis on cost discipline, revenue mix optimization, and leveraging digital/enterprise software solutions to lift margins. Investors should monitor any guidance on cost containment, margin recovery, and revenue growth catalysts given the current profitability trajectory and strong liquidity position.
Key Performance Indicators
QoQ: 0.00% | YoY:-9 007.72%
QoQ: 0.00% | YoY:-32 778.26%
Key Insights
Revenue: MYR 23,683,000; YoY -1.12%; QoQ 0.00%
Gross Profit: MYR 6,818,500; YoY +1.06%; QoQ 0.00%; Gross Margin 28.79%
EBITDA: MYR -10,378,250; EBITDA Margin -43.82%
Operating Income: MYR -10,956,500; Operating Margin -46.26%
Total Other Income/Expenses, Net: MYR 580,000
Income Before Tax: MYR -10,376,500; Pre-Tax Margin -43.81%
Income Tax Expense: MYR 689,000
Net Income: MYR -11,274,000; Net Margin -47.60%
EPS (Diluted): MYR -0.0039
Weighted Avg Shares (Diluted): 2,872,696,000
Cash Flow & ...
Financial Highlights
Revenue: MYR 23,683,000; YoY -1.12%; QoQ 0.00%
Gross Profit: MYR 6,818,500; YoY +1.06%; QoQ 0.00%; Gross Margin 28.79%
EBITDA: MYR -10,378,250; EBITDA Margin -43.82%
Operating Income: MYR -10,956,500; Operating Margin -46.26%
Total Other Income/Expenses, Net: MYR 580,000
Income Before Tax: MYR -10,376,500; Pre-Tax Margin -43.81%
Income Tax Expense: MYR 689,000
Net Income: MYR -11,274,000; Net Margin -47.60%
EPS (Diluted): MYR -0.0039
Weighted Avg Shares (Diluted): 2,872,696,000
Cash Flow & Capital Allocation:
Operating Cash Flow: MYR 9,326,500
Capital Expenditure: MYR -165,500
Free Cash Flow: MYR 9,161,000
Cash & Equivalents: MYR 59,723,000
Net Debt: MYR -54,485,000 (net cash position)
Key Balance Sheet Ratios: Current Ratio 6.13; Quick 5.99; Cash Ratio 4.21
Leverage & Coverage: Debt Total MYR 5,238,000; Debt/Capitalization ~1.77%; Interest Coverage not meaningful given negative earnings
Valuation Signals (as of period): P/S 21.98x; P/B 1.79x; P/E negative; Enterprise Value Multiple -44.92x
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
23.68M |
-1.12% |
0.00% |
| Gross Profit |
6.82M |
1.06% |
0.00% |
| Operating Income |
-10.96M |
-9 007.72% |
0.00% |
| Net Income |
-11.27M |
-32 778.26% |
0.00% |
| EPS |
0.00 |
N/A |
0.00% |
Key Financial Ratios
operatingProfitMargin
-46.3%
priceEarningsRatio
-11.55
Management Commentary
Transcript highlights not provided in the input data. No management quotes or call content are available for QQ4 2024.
Forward Guidance
No explicit forward guidance was provided in the input data for QQ4 2024. Given the current earnings trajectory, investors should look for management color on: (a) targeted cost-reduction initiatives and efficiency gains to stabilize EBITDA margins; (b) any revenue growth catalysts (customer wins, cross-sell opportunities, geographic expansion) that could lift activity levels; (c) potential impairment risk related to the high goodwill balance if expected synergies or cash flows do not materialize; and (d) cadence of capital allocation aligned with the durable net cash position. In the absence of formal guidance, a cautious approach would emphasize margin recovery timelines, cash flow sustainability, and balance sheet resilience amid sector volatility.