SINGAPORE (Aug 2): Secura posted a 2Q17 loss of $45,000, compared to $57,000 earnings last year. This was mainly due to an increase in distribution and selling expenses and administrative expenses.
However, group revenue increased 23.1% in 2Q17 to $10.7 million, from $8.7 million a year ago.
The increase was mainly attributed to the increase in revenue of $0.54 million from the security guarding segment as a result of more contracts and increase in average selling price, increase in revenue of $0.80 million from the cyber-security segment mainly due to the acquisition of RSPL and increase in revenue of $0.97 million from the systems integration and homeland security segment.
These were partially offset by decrease in revenue of $0.30 million from the security printing segment mainly due to decrease in demand for commercial printing products.
Other operating income decreased by 4.7% from $0.49 million in 2Q16 to $0.46 million in 2Q17 mainly due to a decrease in government grants under the Wage Credit Scheme which was partially offset by the Global Company Partnership grant of $0.09 million.
Meanwhile, distribution and selling expenses increased by 58.1% from $0.46 million in 2Q16 to $0.73 million in 2Q17 mainly due to business expansion with new sales staff being employed, incremental cost incurred for the new subsidiaries and the amortisation of customer relationship arising from the fair valuation of the SSPL Group and RSPL.
Shares of Secura last traded at 13 cents on Wednesday.
