Fitness Champs Holdings Ltd

Singapore swimming-education provider that swung to a sizable loss amid rising costs and repeated reverse splits.

Strengths

• Positive operating cash flow (OCF margin 14.8%, 70.8th pct) and FCF margin 87.5th pct
• Established SwimSafer brand with current ratio 1.36 (71.4th pct)

Risks

• Swung to a net loss (net margin -33%, ROE -177%, ROA -51%) as G&A more than tripled
• Revenue concentration in the renewable MOE SwimSafer contract (~41%); multiple steep reverse splits signal distress

Notable findings

• No interest coverageInterest coverage -81.93 (cannot cover interest)
• Net lossNet loss (net margin -32.9%)
• Customer concentration~60% of revenue from one customer/distributor — In the private sector, revenue is mainly from private lessons and aquatic sports, pickleball, and sales of merchandise products, accounting for approximately 60% of our revenue for the years ended Dec