Azeus dives into the red with $1.8m loss

Last year's profit was boosted by a one-off legal fee compensation.

Singapore-listed IT consultancy service provider Azeus Systems Holdings reported a $1.8m (HK$9.9m) loss for 1H17 compared to HK$4.5m earnings last year. According to the group, profits last year included a one-off legal fee compensation of HK$8.8 million for an arbitration with a customer, which contributed significantly to overall earnings. 

Of the HK9.9m net loss, around HK$3.3 million was a result of a net foreign exchange loss arising from the translation of net monetary assets denominated in foreign currencies, particularly in Great British Pound which significantly declined from 1 GBP to 11.75 Hong Kong Dollars to 1 GBP to 10.06 HKD in 1H FY2017.

For the six-month period, the group reported a 5.9% growth in revenues to HK$48.3 million, compared to HK$45.6 million in the last corresponding period.

Azeus managing director Lee Wan Lik said the group managed to maintain its revenue despite ongoing market challenges.

"This underscores the consistent demand for our products and services. Our Group’s cloud-based offering continues to show good growth potential and we remain committed to build our capacity and invest in this segment,” Lee said.

Looking forward, the group expects its core business to hold up despite challenging IT market conditions.

"Azeus Products Sales, the Group’s key growth driver, continues to grow from strength to strength. The Group has made good progress in its cloud-based offering," it noted.

The group furthered, "Azeus plans to aggressively invest in growth in its products by expanding its domestic and international sales and marketing activities, building brand awareness, attracting new customers and sponsoring more marketing events."