Temus, a digital transformation services firm backed by Temasek Holdings, reported robust revenue growth in 2024 but continued to post losses amid significant operating cash outflows, according to its latest filings.
Revenue climbed 59% to S$71.45 million for the year ended Dec 31, 2024, from S$44.93 million a year earlier, while net loss narrowed to S$22.71 million from S$25.54 million in 2023, filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) show.
Temus generates revenue primarily from information technology consultancy and digital transformation services for enterprises and public sector clients. The company is ultimately owned by Temasek Holdings through its investment arm MacRitchie Investments.
DealStreetAsia has reached out to Temus for comment.
The stronger topline came as Temus continued to invest heavily in talent and delivery capabilities. Employee benefit costs rose to S$62.5 million from S$38.8 million, accounting for the company’s largest expenses.
Professional expenses were largely unchanged at S$15.8 million, while information technology expenses increased to S$3.3 million from S$1.7 million.
The group’s expansion weighed on liquidity, with net cash used in operating activities nearly doubling to S$23.6 million in 2024 from S$13 million a year earlier.
Operating cashflow before working-capital changes was a negative S$16.3 million, with movements in receivables, prepayments, and payables further increasing the outflow.
A key driver of the cash strain was growth in work performed but not yet billed or collected. Contract assets rose to S$23.33 million from S$15.59 million, reflecting revenue recognised over time on project delivery.
Temus also recorded a S$1.40 million provision for doubtful debts on trade receivables, indicating some collection risk as the business scales.
Cash flows from investing activities turned slightly positive, with net cash generated of S$0.27 million in 2024, compared with net cash used of S$6.65 million in 2023, when the group recorded an outflow linked to an acquisition.
In 2024, investing activity included S$0.41 million in equipment purchases, partly offset by S$0.67 million in government grants.
Financing activities provided S$4.74 million of net cash, down sharply from S$40.66 million in 2023, reflecting a smaller S$8.18 million capital contribution from shareholders, compared with S$43.52 million previously, alongside continued lease repayments.
As a result, cash and cash equivalents fell to S$12.7 million at end-2024 from S$31.1 million a year earlier, representing a net decrease of S$18.6 million during the year.
Total assets declined to S$75.7 million from S$86.7 million, while net assets dropped to S$32.4 million from S$46.9 million, reflecting accumulated losses.
In their directors’ statement, the board said the accounts were prepared on a going-concern basis and that “there are reasonable grounds to believe that the company will be able to pay its debts as and when they fall due.”
Outside the filing, Temus announced in 2024 the appointment of Ng Lai Yee as CEO, succeeding KY Yeoh who returned to Temasek International.
Temus was established in April 2021 to accelerate the digital transformation of enterprises and public sector agencies in Singapore and overseas.
The firm has expanded through acquisitions, including Singapore-based system integrator DreamCloud and digital services provider Decision Science Agency, and has grown its presence to Malaysia, Hong Kong, and Vietnam, according to company statements.
