PETALING JAYA: Censof Holdings Bhd posted a net profit of RM12.7mil (versus a RM74mil net loss a year earlier) for its fourth quarter ended March 31,2021 (4QFY21).
In a Bursa filing, the technology-based solutions provider said this was due to higher sales demand for its subsidiary’s Asian Business Software Solutions Pte Ltd (ABSS) products driven by attractive government grants in Singapore, savings of finance costs by RM660,000 per quarter upon the full settlement of share margin loan from MIDF Amanah Investment Bank Bhd and term loan from Kenanga Investment Bank Bhd in Q2FY21, fast track of project deliverables under the FMS-G (financial management solution – government) segment, and a gain on fair value adjustment of RM6.8mil on short-term investment in associate Dagang Nexchange Bhd.
For the quarter under review, revenue was marginally higher year-on-year at RM32.7mil, due higher revenue generated by Netsense Group, acquired in 2020 and higher sales demand for ABSS products.
Both the subsidiaries are in the FMS-C (financial management solution – commercial and small-medium enterprise or SME) segment.
For FY21, net profit was RM26.8mil (versus a RM72.4mil net loss a year earlier) while revenue increased 12.6% year-on-year to RM87.7mil, mainly due to gain on fair value adjustment on short-term investment of RM16.2mil, fast track of project deliverables and higher contract awarded under FMS-G segment, a gain on disposal of short-term investment of RM2.1mil, higher sales demand for ABSS products in Singapore and the strategic investment into Netsense Group with profit generation of RM650,000.
For FY21, revenue increased by 12.6% to RM87.7mil mainly due to higher contribution by the FMS-G segment and FMS-C segments.
However, the group ceased to recognise the revenue contribution from the TS (training solutions) segment after the disposal of the subsidiary, Knowledgecom Corp Sdn Bhd on May 4,2020.
For FY21, earnings per share was 5.32 sen (versus a loss per share of 14.43 sen in FY20).
The group declared an interim single tier dividend of 0.75 sen per ordinary share for FY21, with the ex-date on June 3,2021 and payment on June 25,2021.
Regarding its prospects for FY22, the group said it would continue to strengthen its position as a leading major player in providing software solutions to the government agencies and private sector.
“The Covid-19 pandemic has accelerated the shift of many businesses towards digitalisation and has increased the interest and focus on innovation and digital transformation.
Further, with the initiatives by the government’s positive drive on the country’s digitalisation transformation agenda, the group is encouraged that the demand for technology solutions in Malaysia will continue to grow.”