30th Sep 2014 10:38
LONDON (Alliance News) - RapidCloud International PLC Tuesday posted a decline in profit for the half-year to the end of June, as it upped investment in its business, including establishing a subsidiary in Indonesia.
The cloud computing company posted a pretax profit of MYR1.2 million, down from MYR1.9 million, despite seeing revenue rise to MYR6.1 million from MYR4.8 million, as cost of sales and administrative expenses rose.
RapidCloud established its subsidiary PT RapidCloud Indonesia during the half-year, and said the new business was performing well, signing a number of contracts expected to come through in the second half of the year. After the year-end it acquire Exxelnet Solutions Pte Ltd to expand into Singapore.
Additionally the company upped its sales and technical teams to 87 staff members, increased investment in its advertising and marketing, and established new headquarters in Kuala Lumpur.
As a result of this investment, gross margin declined to 64% from 73%.
The company's revenues are weighted towards the second-half, and RapidCloud expects this weighting to be heavier on the back of the Exxelnet acquisition.
"The investments we have made during 2014 leave us better positioned as a Company and we are confident of accelerated growth going forward," said Chief Executive Raymond Chee in a statement.
Shares in RapidCloud were trading down 3.2% at 45.00 pence per share Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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