30th Jun 2016 08:41
LONDON (Alliance News) - Galasys PLC on Thursday said higher costs and provisions booked against the ongoing dispute between the company's chief executive and chairman offset a rise in revenue during 2015 and resulted in a lower pretax profit for the year.
The ticketing service provider to the theme park industry in Asia said its pretax profit in 2015 fell to MYR9.1 million from MYR11.3 million in 2014, after higher costs and exceptional items offset a material rise in revenue in the year.
Revenue increased to MYR51.4 million in the year from MYR38.6 million to push gross profit up to MYR27.0 million compared to MYR19.5 million in 2014.
However, administrative costs rose to MYR13.1 million from MYR6.9 million and selling and distribution costs increased to MYR2.4 million from GBP725,596. Galasys also booked MYR3.0 million worth of exceptional items, none of which were preset in the previous year.
The exceptional items relate to provisions that have been booked for legal fees related to the ongoing directors dispute that started in October last year.
Earnings before interest, tax, depreciation and amortisation fell 8.0% to MYR11.6 million from MYR12.6 million.
Galasys is in the midst of a battle between its chief executive officer and its chairman. Chief Executive Officer Seah Kok Wah and Executive Director Chuah Teong Ming requisitioned a general meeting to remove Non-Executive Chairman Teh Kim Seng in December, but this was blocked by the UK High Court.
In Jersey, the Royal Court is hearing a case both involving the composition of the board and whether Teh Kim Seng and Chuah Teong Ming have the authority to conduct litigation on behalf of the company. The hearing is due to take place on September 20 and will last for around three weeks.
Cash at the end of the year stood at MYR16.0 million, rising from MYR11.3 million at the end of 2014.
Galaysys signed up 73 new amusement park sites to its portfolio of clients during the year and was awarded numerous contracts from eleven "renowned" companies.
"Our sales pipeline is increasing and we expect further momentum as the group continues to expand its market coverage in China and other countries in Asia. We are well positioned to continue to drive both our geographical expansion and new product and services rollout in 2016 and beyond," said the company.
"The group expects to see more financial contribution arising from the commercialisation of products and services launched in 2015. In particular, as part of the transformational growth plan, we have developed and launched new products and internet platforms, enabling the group to broaden its revenue base and reach out more directly to park visitors," the company added.
Galasys said it is exploring collaborations with various technology partners to realise mutual synergies and is continuing to expand into new territories by signing up partners in countries such as the Philippines, Indonesia, Japan, UAE, Oman, Hong Kong and Australia.
Galasys shares were down 1.0% to 25.50 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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