SINGAPORE (May 8): IPS Securex has posted a narrowing of 3Q losses to $0.2 million, which is half of its 3Q17 loss of $0.4 million a year ago due to lower expenses and a tax write-back.
Revenue for the quarter fell 4.4% to $2.3 million from $2.4 million previously due to reduced contributions from the security solutions business, offset in part by higher revenue from the maintenance and leasing business.
The lower security solutions revenue was largely attributable to lower demand for integrated security solutions in Singapore, while improved revenue from the maintenance and leasing business was due to higher provision of maintenance support services to customers in Singapore.
Finance costs fell 80.7% to $63,870 in 3Q18, from $0.3 million a year ago. This was mainly due to the reduction of foreign exchange loss and the absence of an adjustment last year.
Administrative expenses fell 2.0% to $1.29 million in 3Q18, from $1.31 million a year ago.
This was mainly attributable to the decrease in employees’ remuneration and benefit expenses mainly due to lower staff bonuses accrued, lower professional fees, distribution and marketing expenses and office related expenses.
A tax credit of $25,000 was booked compared to a tax expense of $20,000 a year ago, attributable to a tax write-back due to the reversal of over-provisions made over prior years.
As at end March, cash and cash equivalents stood at $3.4 million.
In its outlook, IPS Securex highlights the steady growth of its maintenance and leasing business despite a slowdown in the industry.
Besides cost management efforts, the group says it has also been engaging in opportunities to bring in new Homeland Security products to Asia to expand its range of offerings in terms of security products and integrated security solutions.
Shares in IPS Securex closed flat at 8.4 cents.
