SINGAPORE (Mar 1): Integrated services provider Advancer Global announced a 14.2% rise in FY17 earnings to $3.1 million from $2.7 million a year ago on higher revenue and gross margins across its business segments.
Revenue for the quarter grew 28.2% to a record $65.3 million through higher aggregate service fees from all of its business segments.
Specifically, the overall growth in revenue was attributed to the higher number of foreign domestic workers that the group had placed out to households in Singapore; contributions from acquired entities; higher service income from existing and new cleaning services contracts; and higher aggregate service fees charged for on-going security projects.
In line with the increase in revenue, cost of services grew 24.2% to $46.4 million from $37.4 million a year ago.
Administrative expenses also grew 29.5% to $16.7 million from $12.9 million a year ago.
The group’s total gross profit margin increased by 2.3 percentage points over the full year, to 28.9% in FY17 from 26.6% in FY16 on the back of higher gross profit margins throughout all of its business segments.
Customer retention rates for Advanced Global’s building management business and its security services business were 87.2% and 93.9% respectively.
A final dividend of 0.34 cent, which will be in cash and/or scrip, has been recommended. This would aggregate a full year dividend of 0.83 cent per share for FY17, which constitutes approximately 50% of net profit after tax attributable to owners of the company.
“While our subsidiaries continue to grow organically, we have also looked at innovating and aggregating our services as a group. This will allow us to compete more effectively in the highly fragmented labour-intensive facilities management service sector in which we operate,” says Gary Chin, executive director and CEO of Advancer Global.
“We believe in giving our customers the best value for effective solutions and services that meets their essential needs in this challenging landscape of labour shortage and higher wages. The Group will continue to fine tune our integrated services under the different subsidiaries to provide a holistic range of solutions and services for our customers, particularly in the real estate and building management sector,” he adds.
Shares in the group closed flat at 28 cents on Thursday.
