Ntegrator International revenues reeled to S$32.8m in FY2012

Firm had trouble securing Myanmar projects.

Ntegrator International Ltd (Ntegrator), a leading regional communications network specialist and systems integrator with strong presence in Indochina, including Myanmar and Vietnam, delivered a net profit of S$250,000 for the full year ended December 31, 2012 (FY2012) on revenue of S$32.8 million. 

Group revenue for FY2012 was S$32.8 million, compared to S$36.9 million for the previous financial year (FY2011). This was largely due to the slower completion progress at the Thailand subsidiary and slower than expected progress in securing the Myanmar projects due to the country’s national parliament elections during the year.

However, following the introduction of reforms in Myanmar to liberalise trade and regulations for foreign direct investment, contract orders from Myanmar started flowing in from the beginning of FY2013.

On a segmental basis, the Group’s Project Management and Maintenance Services segment recorded 11.2% higher contributions to S$10.5 million in FY2012, signaling that Ntegrator has been successful in diversifying a new and recurring revenue stream as multi-year maintenance contracts deliver higher margins and have less risk associated with project deliveries. Gross profit for this segment rose marginally by 1.1% to S$2.6 million, and would have been higher if not for the purchase of new equipment and tools worth S$0.5 million to support the Project Management and Maintenance Services segment’s continued growth. The Project Sales segment recorded gross profit of S$5.1 million, on revenue of S$22.3 million.

Overall, the Group recorded a gross profit of S$7.7 million for FY2012, compared to S$8.5 million for FY2011. Gross profit margin as a percentage of revenue remained in line, rising 0.5 percentage point to 23.5% for FY2012, from 23.0% for FY2011. Mr Jimmy Chang, Managing Director of Ntegrator, said: “We are encouraged by our performance achieved in FY2012, which is in line with our plans to grow the Project Management and Maintenance Services business.

“We are particularly delighted that amidst challenges and developments in the political and operating landscape, we have been able to leverage on our capabilities and relationships with customers to secure a number of new contracts, giving Ntegrator a strong start to FY2013.”

The Group maintains a healthy balance sheet with shareholders’ equity of S$17.6 million. Cash and cash equivalents rose to S$9.5 million at the end of FY2012, from S$6.1 million at the end of FY2011.