Good afternoon, everyone. I'm Jordan McCreary, Chief Business Officer of Primech Holdings and Primech AI, the robotics subsidiary of Primech Holdings. I lead our North American expansion and capital markets efforts here in the U.S. I'm presenting today on behalf of our Chairman and CEO, Ken Ho, and our CFO, Kitty Lee, who are in Singapore. Primech is a Nasdaq-listed facility services group headquartered in Singapore. Our operating businesses go back to 1988. Today, that is more than 500 active contracts, over 3,000 employees, and more than 100 robots working on client sites. The title on this slide is the whole story. A profitable facilities business using robotics to fix the one cost line that keeps rising. Now let me show you how. First, a little housekeeping. I'll make forward-looking statements today.
They're subject to the risks on our annual report on Form 20-F for the year ended March 31, 2026. Everything I say comes from our public filings and announcements. Why Primech and why now? Here's the investment case in four parts. First, the scale is already built. Over 3,000 employees, more than 500 active contracts, and client relationships that go back years. That is our deployment channel. We already clean their buildings. Second, revenue visibility is high. We had $177 million in contracted backlog at March 31st, and roughly $70 million of that is scheduled to be recognized in the current fiscal year. Third, automation attacks our largest cost line. Labor is about 85% of our direct costs, and in Singapore, the wage rises every year through July 2028. I'll show you that math in two slides. Fourth, robotics creates re-rating potential.
Robots-as-a-service, international channels, and OEM expansion selling our own robots are the pieces that could change what kind of company we are. We're an established platform, visible revenue, a cost problem we can see coming, and a technology answer we built ourselves. That's why now. Now let me put some numbers on the platform. $78 million of revenue in fiscal 2026, ending March 31st. $177 million of backlog running from this fiscal year through 2029 and beyond. More than 500 active contracts with retention above 95%. More than 100 robots deployed across client sites. That is a mix of our own HYTRON units embedded our facilities contracts, and OEM cleaning and floor care robots. Over 3,000 employees with roots to 1988. $8.9 million of cash in March 31st and about 38 million shares outstanding.
Three operating companies do the work. Primech A&P is our integrated facility solutions, the broadest scope. Maint-Kleen is cleaning and conservancy, including a lot of our public sector work. Primech AI is the robotics R&D arm and the maker of HYTRON. The sentence at the top of the slide is the one to keep. A mature services engine and a growing robotics arm in the same group. Most robotics companies have to go and find a customer, win a pilot, and hope it converts. We are the customer. Our own sites are where the robots get proven. We have a service engine that has one problem, and it's on the next slide. This is the slide I want you to remember. Cleaning wages in Singapore are not set by the market. They are legislated.
Under the progressive wage model, the floor for a general cleaner went from about SGD 1,300 a month in 2022 to SGD 2,080 today, and it reaches SGD 2,420 in 2028. For a restroom cleaner, it goes from SGD 1,530- SGD 2,835 over the same period. That is an 85% increase in six years, and every step is dated in advance. Second, the workforce is scarce. 62% of resident cleaners and laborers are 60 years or older. 10 years ago, that was only 40%. Only 10% now are under the age of 40. In 2024, cleaners were the third hardest non-professional job in Singapore to fill, and the resignation rate runs at about 29% per year. Third, the cushion is coming off. The government has been co-funding these wage increases through the progressive wage credit scheme.
That co-funding was 75% in 2023, and it is 30% now, 20% in 2028, with 2028 being the final year. You can see all of this in our own numbers. Grants netted into our cost of revenue fell from $4.1 million to $2.8 million last year, and gross margin went from 23.6% to 17.1% on a largely fixed-price contract basis. Here's the bottom line. Cost of revenue is 83% of our revenue, and it is mostly wages. The restroom cleaner is paid about SGD 460, SGD 415 a month more than the general cleaner, is one of the hardest roles to fill, and cleans the space that generates the most complaints. The national productivity benchmark says a trained cleaner needs 35 minutes to clean one modest restroom by hand.
The government will co-fund up to half of the cost of a cleaning robot through the Productivity Solutions Grant, which HYTRON is on that list. That's the task HYTRON is pointed at. Our own P&L is the case study. Here's what that did to fiscal 2026. Fiscal 2026 summed up in three numbers. Revenue, $78 million, up about 5% from $74.3 million. Gross margin at 17.1%, down from 23.6%, and I just told you why. Salaries are up 17.6% against revenue up 4.9%, and lower grants. Facilities segment profit of $6.1 million, all audited, US GAAP. I want to be direct about what that means. The services business makes money at the segment level. Below that line, we carry corporate costs, interest, and a robotics segment that is still quite early.
Fiscal 2026 was the first year we leased robots at all, so robotics revenue is smaller, around $12,000. The segment lost around $2.5 million, including R&D. That $12,000 is only Primech AI leasing directly to outside consumers. HYTRON units working inside our own facilities contract are part of those contracts, so their revenue sits in facility services. The group reported a net loss of around $3 million. So that's the shape of a company in transition. A services engine that funds a robotic arm and a margin line that the robotics arm exists to fix. Everything about this slide is turning that around. Here's the balance sheet that carries it. Balance sheet as of March 31st. Total assets, $42.5 million. Total liabilities, $30 million. Shareholders' equity, $12.5 million.
We have notes payable of $16.3 million, nearly all with HSBC, an overdraft, receivables factoring, the mortgage on our old headquarters, small-term loans, plus the first $2 million tranche of a 7% convertible note. We were in covenant compliance at year-end. Liquidity, $8.9 million of cash, $7.6 million of undrawn facilities, $8.2 million of working capital. Operating cash flow is negative, roughly $4 million, and most of that was working capital. Receivables rose about $3.4 million during the year after falling the year before. Three things happened after year-end. The second $2 million tranche of the convertible from WELLE Environmental Group was delivered in July. The notes convert at $1.30. We agreed to sell our Ubi Crescent property for about $8.1 million. The 20-F expected completion after year-end and the $4.3 million mortgage on it is repaid out of the proceeds on completion.
We moved headquarters to Siemens Centre on MacPherson Road. Management's assessment in the 20-F is that cash plus available facilities fund operations for at least 12 months. I will leave it there. Capital markets questions belong with our CFO. Now the demand slide. Since August 2025, we have publicly announced more than $163 million of contract awards across nine sectors.
Bar length is the contract value over the full term. The number in the bar is robots committed under the award. A few to call out here. Social services and public sector, $36.1 million with 27 robots. Universities, $33 million across two campuses over four years with 45 autonomous cleaning robots and HYTRON among them. Hawker centers, $24 million with 20 robots. Polytechnics, $19.6 million with 28 robots. An aviation hub with $24.8 million, facilities only. Commercial with $8.8 million with 25 robots. The point of this slide is the subtitle.
Robotics is being bundled into real facilities contracts, not sold in a vacuum. When a university signs a four year cleaning contract with us, the robots are written into the scope. That is a sales motion a standalone robotics company cannot copy. Two cautions. These are contract values, not robot sales, and the robot counts are commitments under the award, not units already in-floor. Which brings me to the strategy in one line. The strategy is very simple to state. Own the deployment channel, then scale the technology. One, the FM platform. Scale, licenses, customers, recurring contracts. Two, robotics R&D. HYTRON plus a full OEM robot roadmap. Three, customer deployment. Our robots are tested and improved on our own project sites with our own cleaners giving the feedback before a third party ever sees them. Four, margin expansion.
Automation turns labor pressure into operating leverage because every robot replaces a wage hour that is legislated to get more expensive. Five is globalization. Robots-as-a-service, unit sales, and dealers beyond Singapore. The line at the bottom is the one I would write down. Operating sites, labor pressure pain points, real users, and a technology roadmap all under one roof. At our size, that combination is rare. Let us talk a little bit about the HYTRON robot. HYTRON is an autonomous restroom cleaning robot. It navigates to the restroom on its own, and a six degrees of freedom arm cleans toilets, urinals, sinks, mirrors, and mops the surrounding floor. It runs on an NVIDIA Jetson Orin NX with SLAM navigation and computer vision. A technician maps the site at deployment, and after that, it needs no pre-programmed routes and runs on schedule.
The cleaning system uses electrolyzed water and an enhanced ozone-generated process with wet and dry functions. It cuts water usage, chemical and energy use, which is our ESG angle. In independent laboratory surface swab testing in September 2025 using FDA BAM methodology, bacterial counts went from about 12 million CFU per swab to under 10. That is better than 99.9% reduction, and the report is available to investors on request. HYTRON cleans around 40 fixtures per charge. Two patents are pending on the commercialization platform. We won a TechRadar Pro Picks Award at CES in January. In November 2025, Singapore's National Environment Agency put it on the Productivity Solutions Grant supportable equipment list, which means a Singapore customer can have up to half of a unit co-funded. Remember, 39 minutes per washroom. This is what replaces it. Here's how it makes money. The economics.
These are management targets, not guidance. The commercial model in our home market is a lease. Our first public sector HYTRON lease was signed in May 2026 on a three-year term, and that is recurring robots-as-a-service revenue. Manufacturing today is around $31,900 a unit. At scale, manufacturing of around 300 units, we target about $19,100. That is a 40% reduction, and it comes from volume purchasing, design for manufacture, and assembly efficiency. Nothing exotic. Target gross margin for the leasing model is around 40%, with cost of revenue including depreciation, maintenance, and consumables. The scale threshold. At roughly 130 units in the field, HYTRON's fixed costs begin to amortize. I want to be precise about that. It is not a profit break even. It is the fleet size at which additional units start carrying the engineering and support overhead instead of adding to it.
Mass production is scheduled for the first quarter of calendar 2027. You'll notice there is no unit price on this slide. That's deliberate. Terms are set by territory and by service model, and the model differs by market. How big is the market this goes into? Market size, quickly. Our home market, Singapore cleaning activities were SGD 3.6 billion of operating receipts in 2024. One number I like, 58,000 commercial cleaning robots shipped in 2025, up 84%, and all of them almost all clean floors. The restroom is the fixture nobody has automated at scale. Singapore has the lowest birth rate in the world and the highest rate of robotics. Here's where it's already running. We've got proof points outside Singapore, all public. In Hong Kong, HYTRON deployed at Nina Mall and Nina Tower through Primech Hong Kong.
The U.S., HYTRON has done POCs in guest restrooms and corridors at a Home2 Suites in the Pensacola area of Florida, our hotel proof point, through Primech USA. In Japan, a commercial office site with SoftBank, with a hotel group as our launch partner there. These are not renderings. They are stills from the robot operating on-site. I spend most of my time on the U.S. side. We incorporated Primech USA in September 2025, and we were selected for SelectUSA Tech, and UL certification and a U.S. assembly pathway are in progress. Our discussions with large U.S. hospitality and institutional service providers are continuing. So what are we doing this year and the year ahead? Priorities for fiscal 2027, the year ending March 31st, 2027. Management priorities, not guidance. One, convert and reprice the base.
Deliver the $177.7 million backlog and embed the July 2026 and July 2027 wage step-ups into renewals and tenders. That is how a fixed price business protects margin. You reprice at renewal. Two, HYTRON. Scale HYTRON from first lease to fleet. With mass production planned, with three-year public sector leases in hand, and Primech Vision, which was unveiled on October 1st, puts HYTRON, our other robots, and our people on one platform. Three, open the international channels. South Korea, where our exclusive distributor NCM is showing HYTRON at CLEAN KOREA this week with availability there expected from Q1 after KC certification. Greater China with a 200 unit commitment over 24 months from Hong Kong and Macau through Swan Hygiene Solutions and Civils. Europe through TCO Robotics, Japan with the hotel group launch partner, and the U.S. through Primech USA. Four, the balance sheet.
Notes fully drawn, HSBC covenants in compliant, the property sale agreed, and the headquarters moved. Five, governance and disclosure. The 20-F was filed July 29th, the incentive plan is on a Form S-8, and three of our four Directors are independent and chair every committee. The Nasdaq minimum bid price compliance runs to February 2027. We intend to regain compliance through share price performance, and shareholders approved a share consolidation authority at the October 14th AGM as a backstop. Let me tell you about the people doing it. Our leadership Chairman and CEO, Ken Ho, who took us through our Nasdaq IPO, our CFO, Kitty Lee, and Hansel Yu and Khazid bin Omar, who run our cleaning and facility services operations. Then the robotics team. Charles Ng, COO of Primech AI, Patrick Yong, Director of R&D, Félix Gómez Braulio, Head of AI, and myself.
Two housekeeping slides and I will close. Capital structure for the record. 38.7 million ordinary shares at September 10, and 3 million Class B preference shares held by our CEO, 10 votes each, convertible one for one. Our Chairman is the controlling shareholder with majority voting power, so Primech is a Nasdaq-controlled company. $4 million of 7% convertible notes, convertible at $1.30, about 3.1 million shares fully converted. On the right, the operating companies are wholly owned, and Primech AI is held through a 51% owned investment company. Which brings me to the close. Here is the close. Primech Holdings is an established facilities platform that is now scaling through robotics. The base business gives us revenue, backlog, and customers. The technology gives us HYTRON and a full range of facility robots. The upside is margin expansion in the base, plus robots-as-a-service optionality around the world.
We are a service company whose biggest cost is legislated to rise, and whose answer to it is on the floor of our own clients' buildings today. Thank you for your time. Our investor relation details are on the screen, and I am here all afternoon and happy to take questions.
On the legacy facilities management contracts, what kind of equipment is used there? Do you make that or buy that, or is it people driven?
It is a little bit of both. Some of it is people driven. We are also using some other floor scrubbers and things from other companies. That is also with the Primech Vision, where we introduced one of our own robotics vacuums, for example. We have expanded beyond just the bathroom, as well as a delivery robot and a reception robot.
Any other questions?
[inaudible]
Yeah.
[inaudible]
Correct. Yes. So the vacuum robot is specialized for the bathroom or the vacuuming. The HYTRON is specialized for the bathroom. It does, like I said, it scrubs the toilets, the urinals, sinks, mirrors with interchangeable tools with its six degrees of freedom arm.
[inaudib]
Yeah. It was approved if needed.
[inaudible]
Let me go back here real quick. I thought it was on this slide.
[inaudible]
No, you are okay. It may not, but I will get that for you. Anything else? Okay. Thank you.