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Scicom's 3Q Net Profit Grows Further on Increased Billings for Outsourcing Projects (2016)

24 May 2016 (Tue)

KUALA LUMPUR (May 24, 2016: The Edge): Scicom (MSC) Bhd's net profit came in higher at RM10.76 million or 3.03 sen per share in the third quarter ended March 31, 2016 (3QFY16), up 17.5% from RM9.16 million or 2.58 sen per share a year ago, on increased billings for outsourcing projects.

In a filing with Bursa Malaysia today, Scicom said its quarterly revenue grew 16.2% to RM50.2 million from RM43.2 million in 3QFY15. It added that the net increase in the group's outsourcing revenue for 3QFY16 is RM7 million.

The board declared a third interim dividend of two sen amounting to RM7.12 million for the financial year ending June 30, 2016 (FY16), payable on June 21.

For the nine-month period ended March 31 (9MFY16), its net profit expanded by 28% to RM30.8 million or 8.67 sen per share from RM24.1 million or 7.18 sen per share a year ago, while revenue rose 13% to RM142.6 million from RM128.7 million.

The group's outsourcing business principally comprises services provided to clients on long-term contracts and adhoc short-term services.

The increase in the group's outsourcing revenue and direct contribution is attributable to organic growth in existing projects and new projects secured, said Scicom, adding that it expects to achieve growth in revenue and profitability in FY16.

Scicom closed two sen or 0.83% lower at RM2.33 for a market capitalisation of RM828.2 million.

By Sangeetha Amarthalingam | theedgemarkets.com | May 24, 2016 : 11:02 PM MYT