Azeus full-year net profit triples to HK$31.1m

Mainly on surging IT services contracts.

In a disclosure to the exchange, Singapore-listed IT consultancy services provider Azeus Systems Holdings Ltd. (Azeus) announced that the Group’s net profit had tripled to HK$31.1 million for the full year ended March 31, 2013 (FY2013) from HK$10.4 million for the full year ended March 31, 2012 (FY2012).

Said Mr Lee Wan Lik, Managing Director of Azeus, “We are pleased to report that the group has delivered another year of solid results. In FY2013, we secured and implemented more IT services contracts and coupled with the compensation from winning an arbitration case in March 2013, the Group achieved a tripling of our earnings to HK$31.1 million. On this positive note, we are pleased to declare a first and final dividend of 10.38 HK cents per share, a record payout for our shareholders.

Group Revenue in FY2013 was HK$116.7 million, up from HK$111.9 million in FY2012 on the back of higher turnover from the IT Services and BPO business segments, partially offset by a minor dip in turnover from the Maintenance and Support Services (MSS) segment.

The IT Services segment remained as the Group’s major revenue contributor, accounting for HK$58.2 million or 49.9% of Group Revenue. Revenue from IT Services was 7% higher compared to FY2012 as more contracts were secured and implemented in FY2013. Revenue from the BPO segment, which accounted for 11.2% of Group Revenue, grew 11% with the successful renewal of the BPO contract at higher chargeable rates and outsourced headcount in December 2011.

Revenue from MSS segment remained almost unchanged at HK$45.4 million in FY2013 as compared to HK$45.6 million in FY2012, and accounted for 38.9% of Group Revenue.

Due to an increase in consultancy fee and an increase in headcount and salaries, cost of sales increased by HK$7.2 million to HK$77.0 million in FY2013. Other income rose from HK$0.5 million to HK$41.2 million largely due to a compensation of HK$40.9 million which came as the Group won an arbitration case in March 2013. The Group had announced the arbitration win on 27 March 2013.

Given the above, the Group achieved a healthy gross margin of 34.0% and a net margin of 26.7% in FY2013. The Group’s net profit also tripled from HK$10.4 million in FY2012 to HK$31.1 million in FY2013.

The Group had no debt and a strong balance sheet with cash and cash equivalents of HK$48.6 million as at March 31, 2013.