CAC posts loss as $250m preference share maturity looms this month

Industrial air-conditioning installers CAC 2000 Limited posted a net loss of $176.2 million for the year ended October 2025, reversing a profit of $22.3 million the prior year, as ageing receivables and shrinking project billings weighed on results.

Chief Executive Gia Abraham acknowledged the “difficult” year and said the company would focus on cash-recovery measures, including factoring receivables, to stabilise finances. The losses come as CAC faces the maturity of a $250 million redeemable preference share issue on March 16, 2026. Cash holdings stood at $46 million at year end.

“We are actively engaged in refinancing discussions with our banking partners to address this and our broader capital structure,” Abraham said, adding that the company hadrequested an extension to May to complete the process. “We will update shareholders as these discussions progress.”

Revenue fell 37 per cent to $753.5 million while finance costs of $54 million and an expected credit loss provision of $98.5 million against trade receivables compounded the downturn. Gross trade receivables stood at $543 million, nearly half of total assets of $1.2 billion, underscoring the strain on cash conversion.

“The business has substance. Our liquidity challenge is structural – cash trapped in long dated receivables – not a question of whether the underlying value exists,” Abraham said.

Management has outlined a four-point plan to intensify collections, clear stalled projects, invoice completed work, and rebuild the pipeline with a heavier tilt towards private- sector clients, offering faster payment cycles. Operational priorities include shorter project cycles and higher margin business lines. Governance changes already in place include stricter credit oversight, weekly procurement discipline, and formalised leadership mandates.

One measure of progress: net cash from operating activities improved from a deficit of $70.1 million in 2024 to a surplus of $8.5 million in 2025. “This reflects the early impact of our receivables collection efforts and cost discipline, and it demonstrates that the underlying business is generating cash even in a difficult year,” Abraham said.

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