Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 17

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 3
Chunk 17
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 cash flows and our profit on such contracts
may be reduced or we may have to suffer a net loss, which may have a material adverse effect on our reputation, business, results of
operations, financial condition and business prospects.

Our
past growth rate, revenue and net profit margin may not be indicative of our future growth rate, revenue and net profit margin.

During
the fiscal years ended April 30, 2023, 2024 and 2025, our revenue was approximately S$21.9 million, S$24.2 million and S$15.4 million,
respectively, representing a negative compound annual growth rate of 15.7% per year from April 30, 2023 to April 30, 2025. There is an
inherent risk in using such historical financial information to project or estimate our financial performance in the future, as it only
reflects our past performance under particular conditions, especially in situations like the unprecedented Covid-19 pandemic. We may
be unable to sustain our historical growth rate, revenue and net profit margin for various reasons, such as deterioration in the market
conditions in Singapore, intensification of competition among main contractors, labor shortage, inflation and other unforeseen factors
which may delay the completion of our projects, reduce the number of projects awarded to us and/or reduce the profit margins of our projects.
There is no assurance that we will be able to achieve the performance we previously did. Investors should not solely rely on our historical
financial information as an indication of our future financial or operating performance.

There
is no guarantee that we will receive progress payments in full on time, or at all.

We
generally receive progress payments with reference to the certified work done. The customers issue a payment certificate certifying the
work progress upon receiving our payment application. Depending on the terms and conditions of the relevant contract, our customers generally
pay us within 35 days after the presentation of our invoice, which is issued after our receipt of the payment certificate. There is no
assurance that our customers will remain solvent or that our customers will pay us the progress payments in full in a timely manner,
or at all. We could be engaged in prolonged negotiation with our customers with respect to the settlement of progress payments or the
final payment and could incur costs to enforce such payments from time to time. Any failure by our customers to make any payment on time
or in full may have a material adverse effect on our liquidity. Any failure by our customers to eventually