Venture Corp among the unlikely winners of Brexit: analysts

The stronger USD boosted their revenue growth.

The United Kingdom’s decision to leave the European Union sent firms reeling across the board, but Venture seems to be benefitting from the referendum.

According to a report by OCBC research, since GBP plunged to a 31-year low against the USD, the greenback has been gaining more ground against the Singapore dollar.

With 90% of Venture’s revenue denominated in USD, OCBC noted that the forecasted strengthening of the greenback will likely boost its revenue growth in at least 2H16 and 1H17.

“Recall that in 3Q15, when USD saw a 5.6% appreciation against the SGD, about 55% of VMS’ 15.7% YoY growth in 3Q15 revenue was attributable to forex movement,” OCBC added.

Meanwhile, the firms also seems primed for expansion as it announced that it has completed the acquisition of a 123,706 sqm plot of land in Penang, Malaysia, for MYR33.3m.

“This new plot of land is 2.55x and 0.56x the combined size of VMS’ existing properties in Penang and Malaysia, respectively. The land acquisition did not come as a surprise to us since management has in the past highlighted their intention on land acquisition in preparation for future capacity expansion,” OCBC said.