SINGAPORE (Aug 17): Security solutions provider IPS Securex swung to net losses of $2.8 million and $2.5 million in 4Q17 and FY17 respectively.
The group had reported net profits of $2.1 million and $2.2 million in 4Q16 and FY16 respectively.
Group revenue decreased 53.2% to $2.1 million in 4Q from $4.4 million. For FY17, revenue fell 9.3% to $11.6 million.
In 4Q17, revenue from the Security Solutions Business decreased 78.4% to $664,000 from $3.1 million in 4Q16 mainly due to the decrease in the sale of Acoustic Hailing Systems and other security solutions products to customers in the rest of Southeast Asia and and decrease in demand for integrated security solutions in Singapore.
Revenue from the Maintenance and Leasing Business remained relatively stable at $1.4 million.
Other income decreased 90.8% to $165,000 in 4Q17 and decreased 85.3% to $292,000 in FY17 due to the absence in 4Q17 of a credit note received from a supplier in 4Q16 amounting to $1.5 million.
Other operating expenses increased to $3.2 million in 4Q17 from $59,000 in 4Q16. This was mainly due to the allowance for doubtful debts of $3.0 million with a customer in the rest of Southeast Asia for the repayment of trade receivables over five pre-agreed instalments.
IPS Securex believes that the continued security concerns in the Asia-Pacific and the resultant need for monitoring and emergency response preparedness, including the need to upgrade existing security equipment and systems, will continue to benefit the group in terms of long-term demand for its security products and integrated security solutions.
No dividend has been declared.
Shares in IPS Securex closed 1.2 cent lower at 6.7 cents.
