SINGAPORE (Feb 8): IPS Securex posted a 27.6% fall in 1H17 earnings to $0.7 million from a year ago due to the acquisition and integration of Yatai Security & Communications and Avac Systems with the group.
Revenue for the three months ended Dec rose 2.5% to $7.1 million from a year ago. Sales from the group’s Maintenance and Leasing Business increased by 12% to $2.8 million, lifted by an increase in fees earned from the provision of ad-hoc maintenance support services to customers in Singapore, Indochina and the rest of Southeast Asia.
The group’s security solutions business, on the other hand, saw a 2.3% decrease in revenue to $4.3 million due to lower demand for integrated security solutions by customers in Singapore and partially offset by an increase in the sale of Acoustic Hailing Systems to customers in the rest of Southeast Asia.
The group’s gross profit increased by 6.9% to $3.6 million mainly due to the net decrease in direct material costs and an improvement in gross profit margin attributable to higher margins derived from the Maintenance and Leasing Business.
Other income increased by 144.5% to $476,000 mainly due to the increase in foreign exchange gain as a result of the appreciation of trade receivables denominated in United States dollar against the Singapore dollar.
Administrative expenses increased by 34.5% to $3.2 million in 1H17 mainly attributable to the increase in employees’ remuneration and benefit expenses primarily due to annual salary increments and an increase in headcount arising from the acquisition of Yatai and Avac as well as depreciation of plant and equipment, distribution and marketing expenses, and office and storage rental.
Given these heightened security threats in the world today, the group believes that it is in a good position to benefit from the increasing long-term demand for security products and integrated security solutions.
To provide more options for customers to deal with their specific security challenges, the group will further broaden its range of security products and integrated security solutions.
Shares of IPS Securex closed at 16 cents on Wednesday.
