3rd Jun 2015 08:14
LONDON (Alliance News) - RapidCloud International PLC Wednesday posted a flat pretax profit for 2014, as a rise in revenue was offset by increased costs and a reduction in gross margin, and the company said it expects a "continued strong performance in 2015".
The company posted a pretax profit of MYR3.2 million for 2014, flat on 2013, as a rise in revenue to MYR17.8 million from MYR11.3 million was offset by a rise in administrative costs, and a reduction in gross margin to 54% from 74% the year before.
The company acquired Exxelnet Solutions Pte Ltd during the year, which it said provided it with a profitable business in Singapore, and added to its work force.
Additionally the company continued to invest in its research and development, and headcount, increasing its total staff numbers to 160 from 58 in the previous year.
During 2014 Rapidcloud secured a number of contract wins, including with the national legislature of a country in Southeast Asia.
RapidCloud did not propose a dividend for the year, but said it intends to pay an interim dividend within 2015.
"With the successful acquisition and integration of Exxelnet complete, we now have not only a foothold in the key territory of Singapore, but also an expert team of software engineers and digital marketing specialists which are now fully integrated into the enlarged group and whose capabilities have broadened our offering to customers," said Founder and Managing Director Raymond Chee in a statement.
"Our business continues to be profitable and cash generative and as the business executes its expansion strategy, the board expects a continued strong performance in 2015," Chee added.
Shares in RapidCloud are trading down 2.2% at 44.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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