Procurri sees 1Q 2018 net profit rise six-fold to US$756K

By Digital News Asia April 26, 2018

Administrative expenses declined by 7.1% quarter-to-quarter
Earnings per share increased to 0.35 Singapore cent in 1Q 2018

Procurri sees 1Q 2018 net profit rise six-fold to US$756K

SGX-listed Procurri Corporation Limited (Procurri and together with its subsidiaries, the Group) on April 25 announced that its net profit for the three months ended March 31, 2018 (1Q 2018) rose six-fold to a record first quarter performance of S$1 million (US$755,687) from S$164,000 (US$123,933) a year ago (1Q 2017), mainly driven by the higher-margin Lifecycle Services business. (S$1 = US$0.7556)

The improvement reflects the early fruits of a shift in 1Q 2017 to support more maintenance projects with in-house capabilities rather than outsourcing. This also affirms the Group’s ability to synergise new acquisitions and spur organic growth.

The Lifecycle Services business segment contributed S$15.5 million revenue in 1Q 2018, more than double the S$7.5 million in 1Q 2017, mainly due to better performance across all geographies. The IT Distribution business segment grew 10.6% to S$34.0 million in 1Q 2018 from S$30.8 million in 1Q 2017, boosted by better performance from the Americas.

The Group’s gross profit (GP) rose to S$17.9 million in 1Q 2018, up 39.3% from S$12.9 million in 1Q2017. This represents a GP margin of 36.2% in 1Q 2018 (33.6% in 1Q 2017).

The higher GP and GP margin were lifted by the Lifecycle Services business segment, which recorded a GP of S$9.5 million and a GP margin of 61.5% in 1Q 2018, up sharply from S$2.9 million and 38.9% in 1Q 2017, respectively.

Procurri sees 1Q 2018 net profit rise six-fold to US$756K

The Group recorded administrative expenses of S$12.1 million in 1Q 2018, which included three months of expenses from Rockland Congruity LLC (Rockland), its 51%-owned company spearheading the Group’s global storage maintenance services. In comparison, administrative expenses of S$9.8 million in 1Q 2017 included one month of expenses from Rockland. On a sequential basis, administrative expenses in 1Q 2018 was 7.1% lower than the S$13.1 million for the three months ended Dec 31, 2017.

The Group recorded a positive working capital of S$32.9 million as at March 31, 2018 compared to S$29.8 million as at Dec 31, 2017.

Earnings per share increased to 0.35 Singapore cent in 1Q 2018 from 0.06 Singapore cent in 1Q 2017. Net asset value per share of 23.07 Singapore cents as at March 31, 2018 was up slightly from 22.61 Singapore cents a year ago.

Sean Murphy, the Group’s chairman and global CEO, said: “Procurri was founded with the vision of helping global enterprises on their cloud adoption. I am glad to see that our strategic positioning to assist global enterprises in their digital transformation is beginning to be reflected in our financial performance.”

“We are on track to achieving our goals as set out in our Corporate and Business Update announced on Jan 30, 2018, including our aim to bring the Group back to profitability for the full year ending Dec 31, 2018.”

Barring unforeseen circumstances, the Group expects the financial results for the second quarter ending June 30, 2018 to be profitable.

Procurri is an independent provider of Lifecycle Services and Data Centre Equipment. By offering a converged network that combines the technology, finance and logistics domains, Procurri aims to be a global aggregator of enterprise hardware and services to its channels.

Incorporated in 2013, Procurri has offices across three regional hubs – Asia Pacific, Americas and EMEA – with its global headquarters located in Singapore.