SINGAPORE (May 30): Azeus Systems Holdings, the Hong Kong-based IT consultancy services provider, has swung back to profitability in FY18 with earnings of HK$ 1.87 million ($0.32 million), compared to a loss of HK$ 21.6 million in FY17.
Revenue for FY18 was 5% higher at HK$ 102.4 million from HK$97.9 million in the previous year.
This was mainly due to a 106% y-o-y increase in revenue contribution from Azeus Products to HK$ 24.4 million, but was offset by lower revenue contribution from the group’s Professional IT Services.
As cost of sales dropped 3% y-o-y to HK$70.0 million, gross profit for FY18 stood at HK$32.4 million, 27% higher than HK$25.5 million a year ago.
In FY18, the group saw a one-off gain of HK$ 7.25 million from amount received in settlement of maintenance claim, which was absent in FY17.
The group also recorded other gains of HK$ 4.55 million in FY18, compared to other losses of HK$ 4.94 million in FY17, due to the translation of net monetary assets denominated in foreign currencies especially in GBP, as the GBP strengthened against HKD.
As at Mar 31, the group’s cash and cash equivalents stood at HK$ 58.6 million.
The group has recommended a first and final dividend of 6.2 HK cents per share.
On the outlook, the group’s Professional IT Services continues to remain sound and is expected to see progressive recognition of revenues from recent contract wins following their implementation in FY19 and FY20.
Meanwhile, the group will continue to invest further into its Azeus Products segment to attain greater market share and explore opportunities in new markets to diversify its future income streams.
Shares in Azeus closed at 24 cents on Wednesday.
