28th Sep 2016 11:19
LONDON (Alliance News) - RapidCloud International PLC Wednesday cautioned that it expects the challenging trading environment it saw in the first half to continue, and for its 2016 to be in line with 2015, and therefore below market expectations.
The Southeast Asia based web-hosting and computer services company reported a pretax profit of MYR598 million, flat on the previous year, and equivalent at current exchange rates to GBP111,233. This was on revenue of MYR7.5 million, equivalent to GBP1.4 million, down from MYR7.8 million, or GBP1.5m.
RapidCloud said its interim results reflect a downturn in its end-markets seen at the end of 2015. It now longer expects sequential revenue growth in the second half of the year, leading it to expect a flat performance for the year overall.
"Notwithstanding the difficult trading environment, I am pleased with the operational progress the company has made during the six months to 30 June 2016. During the period, the company has developed new products, launched several high value enterprise grade software packages and signed significant strategic agreements with distributors and Alibaba, one of the world's largest e-commerce organisations," said Chief Executive Raymond Chee in a statement.
"As a result of the operational progress, I believe the company is now in a much stronger position that it has historically and whilst I do not expect sales at accelerate during the remainder of the current year, I remain confident that the company is well placed to benefit from any upturn in its end markets in 2017 and beyond," Chee added.
Shares in RapidCloud were down 15% at 20.00 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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