Hefty profit bonus awaits Venture as high amortisation costs vanish

Forex effects will continue to boost its bottom line.

Venture Corporation will have an extra $17m to spare in its profit statement starting 2017, according to a report by CIMB.

CIMB noted that Venture is currently saddled by amortisation costs worth $16.8m a year, which is on back of its acquisition of GES Manufacturing Services in November 2006.

"The yearly amortisation amounts to $16.8m and will end by FY16, freeing the P&L statement from this charge against
earnings from FY17," CIMB said.

Apart from this expected profit boost, Venture will also continue to benefit from foreign exchange gains. Venture reported a $3m exchange gain this quarter.

CIMB expects Venture's profit to continue climbing on back of favorable forex effect and solid core operations, which will offset higher R&D expenses and a higher tax rate.