VADS to sustain growth

  • Business
  • Wednesday, 12 May 2004

VADS Bhd expects to maintain a double-digit growth in the current financial year ending Dec 31 with continued demand for its managing network services and its latest venture into the call centre business. 

Acting chief executive officer Dennis Koh Seng Huat said managing network services had seen encouraging growth, with companies opting to outsource their data management networks to third parties. 

“We expect to conclude deals with a number of financial institutions, both local and foreign, in the next two quarters to manage their data networks,” he told reporters after the company's AGM in Kuala Lumpur yesterday. 

“Those deals will add to a very strong revenue stream for the company,” he said. 

Koh said VADS was also moving into the call centre business and had started managing a call centre for Telekom Malaysia Bhd's Streamyx broadband Internet service. “We only launched the business a month ago with 60 seats and have increased that to 100 seats at present,” he said. 

Koh said the investment for equipment was RM2mil, adding that investment into human capital was a crucial factor in determining the success of a call centre.  

“We are only at the initial stage of the business and are still trying to improve on the efficiency before we could really go out and market the services to more clients,” he said. 

Since its inception 12 years ago, VADS has recorded double-digit annual revenue growth, from RM700,000 in 1992 to RM151.3mil in 2003. Pre-tax pofit also improved to RM14.74mil last year from RM4.11mil five years ago. 

Dennis said earnings per share stood at 27 sen last year and he expects this to grow by double-digits this year.  

“We are moving in target with the government’s key performance indicator required of Government-owned companies,” he said. 

VADS is 69.52%-owned by Telekom. 

 Stock Watch On VADS

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

Britain looking at temporary measures to alleviate trucker shortage
'Loss and pain': Families testify at Dutch MH17 trial
Oil hits highest in almost 3 years as supply tightens
GLOBAL MARKETS-S&P 500 edges up, European shares slump amid Evergrande fears, US yields rise
Banking on wealth management
Short Position - Opcom, La Nina, Taxing
Going for growth
Sapura Energy in race against time
Ge-Shen hopeful of growth amid challenges
Bioalpha’s China move laudable

Stories You'll Enjoy