Prestariang expects better results this year

  • Business
  • Tuesday, 16 Jun 2015

interview prestariang Group chief executive officer Dr Abu Hasan Ismail at Cyber Point Cyberjaya

CYBERJAYA: Prestariang Bhd is confident of achieving better financial results this year due to new contracts secured.

“It will be better than last year. The dip in last year’s performance was due to the timing or delay in the signing of contracts. These are secured now, and ongoing,” said chief executive officer Abu Hasan Ismail after the company’s AGM.

Abu Hasan added that the company was more efficient nowadays, after cost-cutting measures and investments in long-term growth following the drop in revenue and earnings last year.

He also said the company expected to turn around its loss-making University Malaysia of Computer Science and Engineering (UniMY) this year.

“We are still awaiting government approval for the proposed 30% acquisition in UniMY by Majlis Amanah Rakyat (Mara),” said Abu Hasan.

Mara is expected to bring in 500 sponsored students to UniMY annually.

The company will also launch its training centre in Pengerang, Johor in the third quarter, which will supply skilled workers for the oil and gas industry.

The training centre is a unit of Prestariang O&G Sdn Bhd, which is a joint venture between Prestariang (51%) and MIE Corp Holding Sdn Bhd (49%).

Prestariang had reported a 37.4% year-on-year drop in net profit to RM4mil for its first quarter ended March 31, 2015 mainly due to lower gross profit margins from its software and services segment.

Earnings for the three months under review dropped despite revenue rising 94.4% year-on-year to RM40mil, which was attributed to contracts secured such as the education alliance agreement (EAA) and the renewal of the master licensing agreement 2.0 to distribute Microsoft software to schools and government departments.

Both the deals are valued at RM93.2mil over three years, according to Prestariang.

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