22nd Dec 2015 08:01
LONDON (Alliance News) - RapidCloud International PLC on Tuesday said profit and revenue in 2015 will miss market expectations due to issues in its markets in Malaysia, Singapore and Indonesia, as well as due to investments it has made throughout the year.
The computing services company said the implementation of a new goods and services tax in Malaysia meant many companies chose not to invest in IT in the year, while the Malaysian economy overall weakened in the face of lower oil prices.
Meanwhile, growth was slower than anticipated in Singapore, while operations in Indonesia have taken longer than expected to become established.
RapidCloud now expects revenue in 2015 to be at a similar level to that achieved in 2014, and this combined with costs associated with investments the company has made during the year mean that profit also will be materially lower than both market expectations and the level of profit made last year.
"Whilst the period under review was challenging, we believe the company is now well placed to return to meaningful growth in 2016. All the directors are committed to delivering shareholder value and demonstrated this by electing to receive the scrip dividend earlier in the year," Managing Director Raymond Chee said in a statement, referring to a dividend payment in shares rather than cash.
"The economic environments in which we operate appear to be improving, and we believe our enhanced product and services suite is well placed to capitalise on any growth in our target markets. Management is therefore confident 2016 will be a much more positive year for the company," he added.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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