Edaran bags RM150mil Customs contract, EPS to jump 16 sen

A generic pix of business people looking at the website setup by Royal Malaysian Customs Department to prepare themselves for the upcoming Goods and Services Tax (GST).

KUALA LUMPUR: Edaran Bhd has received its second contract extension from the Royal Malaysian Customs Department to maintain the Customs Information Systems (SMK), along with upgrading work, in a deal worth RM149.97mil.

The previous SMK maintenance contracts given to Edaran’s unit Edaran IT Services Sdn Bhd were a two-year job valued at RM23.79mil (March 2014 to February 2016) and an 18-month extension worth RM19.25mil (up to August 2017).

The newest contract, which will expire on Aug 31, 2019, is expected to boost its earnings per share by 16 sen, Edaran said in a statement to  Bursa Malaysia.

The loss-making company, which installs and maintains information technology products and related services, recorded an unaudited loss attributable to shareholders of RM2.3mil for the financial year ended June 30, 2017, on revenue of RM84.74mil.

This translates into loss per share of 3.98 sen. 

The counter closed 1.5 sen higher at 22.5 sen on Tuesday, with 15,000 shares changing hands.

Edaran IT Services is a full-fledged IT services and solutions provider that began operations in 1988.

It provides end-to-end IT systems solutions that include, among others, the provisioning, installation, commissioning, integration and maintenance of IT systems and related services.

Its major customers are Government-related. They include the Customs Department, the International Trade and Industry Ministry, Universiti Teknologi Mara, Department of Syariah Judiciary Malaysia, Universiti Teknologi Petronas, the Prime Minister’s Department, the Science, Technology and Innovation Ministry, and the Inland Revenue Board.