24th Sep 2015 10:24
LONDON (Alliance News) - RapidCloud International PLC Thursday expressed confidence in meeting market expectations for its current financial year, as it reported a fall in pretax profit for its first half.
For the half year to end-June, RapidCloud reported a pretax profit of MYR595,000, about GBP88,650 at current exchange rates, down from MYR1.2 million a year before, as a rise in revenue to MYR7.8 million, or GBP1.2 million, from MYR6.1 million, was offset by higher administrative costs.
Gross margin declined to 57% from 64%, hit by an increase in hosting charges and the addition of new subsidiaries.
RapidCloud attributed its rise in revenue to both organic growth and a contribution from newly acquired subsidiary RapidCloud Singapore Pte Ltd.
The company noted that it had continued to grow revenue in the first half despite a slowdown in non-essential spending across Malaysia following the implementation of the Goods and Services Tax in April. It said this "destabilising period" has now passed.
"The combination of this, the return to normality of trading following the impact of the Goods and Services Tax, and the number of attractive projects embarked upon and in the pipeline lead the board to be confident of achieving market expectations for the current financial year," the company said in a statement.
Shares in RapidCloud were up 6.5% at 30.87 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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