13th Apr 2015 07:52
LONDON (Alliance News) - Galasys PLC Monday reported strong growth in profits in 2014, as the provider of ticketing software to amusement parks in Asia said new contracts and strong demand from existing clients drove revenue up 45%, and it brought forward its maiden dividend payment.
The IT services provider, which listed on AIM last May, said pretax profit rose to MYR11.3 million in 2014, from MYR8.4 million in 2013, as revenue rose to MYR38.6 million from MYR26.7 million. Its closely-watched earnings before interest, tax, depreciation and amortisation rose to MYR12.6 million from MYR8.5 million.
It said it will pay a maiden dividend of 1.084 sen, or about 0.2 pence a share, bringing forward its dividend plans due to the growth of the business.
Galasys said it had installed software at 46 new sites since its IPO roadshow a year ago, and secured new clients including Dalian Wanda Group in China and Enchanted Kingdom in the Philippines> It has expanded its sales network into the Philippines, Indonesia, Vietnam and the UK.
The company is investing in technology, particularly internet-based and app-based systems, in an attempt to reach out more directly to amusement park visitors.
"We expect to maintain the positive trends in the business in the coming financial year as we deliver on our long term strategic objective of transforming our current project based business and revenue model into one which correlates our revenue and profits more directly to the number of visitors to our theme-park customers," it said in its outlook statement.
"Asia remains the fastest growing market for the global amusement park industry and Galasys is well positioned to continue its growth in this region. The group is working on a strong sales pipeline of projects for financial year 2015 and the board is confident of delivering another year of good progress and financial performance," it added.
In a statement later Monday, Galasys said it will issue 10 million shares at 30 pence per share as part of a new collaboration agreement signed with China's Shiji Information Technology Co Ltd. The value of the share issue is around GBP3 million.
Shares in Galasys were up 11% to 25.00 pence Monday morning, one of the best performers in the AIM All-Share.
Galasys will issue the shares to Shiji subsidiary Focus Information Technology Co Ltd as part of a collaboration deal signed by the two companies for the Asian tourism industry. The pair will bundle and integrate their respective technology products, internet ticketing platforms and payment services for the Asian market under the deal.
By Steve McGrath; [email protected]; @stevemcgrath1. Additional reporting by Sam Unsted; [email protected]; @SamUAtAlliance
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