Miyoshi’s FY2026 Loss Narrowed, but Cash Flow Still Falls Short of Investment Spending

Miyoshi Limited (SGX: M03) reported a smaller loss for the year ended 31 August 2026, but shareholders will receive no FY2026 dividend. In its unaudited results announced on 30 October 2026, the board said it had chosen to conserve cash amid a challenging business environment. The decision is easier to understand when the cash-flow statement and borrowing note are read alongside the improved earnings figure. [S1, p. 1] [S1, p. 24] [S1, p. 27] [S1, p. 29]

A smaller loss still left Miyoshi in the red

The group’s net loss narrowed to S$1.39 million from S$3.21 million in FY2025. The loss attributable to owners of Miyoshi also narrowed, to S$1.56 million from S$3.00 million. Revenue, however, fell to S$31.16 million from S$32.87 million; the company attributed much of the decline to weaker consumer electronics demand and fewer sales orders in the Philippines. [S1, p. 3] [S1, p. 24]

The improvement needs some care in reading. FY2026 included a S$1.24 million gain on disposal and remeasurement of assets held for sale, a S$760,000 gain on disposal of a financial asset, and a S$237,000 gain from derecognising a deferred liability. These items helped reported results but do not, on their own, show that the manufacturing business can consistently generate enough cash for a payout. [S1, p. 18] [S1, p. 25]

Operating cash did not cover investment spending

Operating activities generated S$270,000 in FY2026, reversing the prior year’s S$411,000 outflow. That is progress, but the group spent S$1.37 million on property, plant and equipment. Adding the signed purchase outflow to operating cash flow leaves a S$1.10 million shortfall before asset-sale proceeds and financing flows. [S1, p. 9]

Disposals helped bridge that gap: the cash-flow statement records S$1.78 million from assets held for sale and S$760,000 from the disposed financial asset. These proceeds supported cash during the year, but selling assets is a different source of funds from recurring operating cash generation. Miyoshi also received a S$1.02 million loan from a director. [S1, p. 9]

Debt remains a reason to preserve cash

Bank borrowings fell from S$8.85 million to S$5.01 million by 31 August 2026, while cash and bank balances fell from S$5.96 million to S$4.17 million. The reduction in debt came alongside substantial cash use: bank-loan repayments totalled S$4.63 million during the year. [S1, p. 5] [S1, p. 9] [S1, p. 21]

The borrowing note also describes a lender’s demand concerning a Philippine subsidiary. Of the amount demanded, US$1.16 million, approximately S$1.48 million, remained outstanding at 31 August 2026. The lender had declared the balance immediately due, so Miyoshi classified the relevant borrowing as current. The filing does not establish that this balance had been settled by the 30 October announcement. [S1, p. 22]

What would change the dividend picture?

For now, the board’s decision to conserve cash is consistent with a loss-making year, operating cash flow below investment spending, and the disclosed lender demand. The next results will be more informative if they show sustained operating cash generation sufficient to cover investment needs, together with an update on the demanded borrowing. A smaller accounting loss alone is not yet a clear basis for expecting a dividend. [S1, p. 3] [S1, p. 9] [S1, p. 22] [S1, p. 27]