Cuscapi reports 22.14% increase in Q2 revenue to RM14.38mil

• Shares will be officially transferred and quoted on the Main board on Sept 4
• Contributions from China up 92.85% to RM7.77 million from RM4.03 million in first half

CUSCAPI Berhad, which provides technology for the hospitality and retail industries, has reported a 22.14% growth in its group revenue to RM 14.38 million for the current financial quarter ended June 30, 2013 compared to the first quarter of 2013, due largely to better contributions from its China operations.
 
The group’s business in China continued to register strong growth with revenue almost doubling in the first half of current financial year. Contributions from China increased 92.85% to RM7.77 million from RM4.03 million in the first half of 2012, the company said in a statement.
 
[RM1 = US$030]
 
However, Cuscapi’s revenue of RM14.38 million for the current financial quarter under review was lower compared to the preceding year’s quarter revenue of RM19.44 million.
 
The decrease was mainly attributed to the delay in materialisation of certain significant projects in Malaysia, coupled with a strong quarter in the previous year due to the securing of a major project from a key customer, the company said.
 
This was mitigated by the continued strong growth in its China business and Cuscapi anticipates the second half results would be more on the positive side.
 
Chief executive officer Her Chor Siong (pic) said China is currently the group’s largest growth driver in the international market.
 
“In the short term, we will continue to invest in capacity expansion to grow our presence in the bigger markets in China,” he said.
 
“We are also investing to establish the necessary infrastructure and delivery and support team to sustain the mass deployment of our new customer self-service interactive ordering solutions,” he added.
 
Cuscapi currently has five direct offices in the Asean region and four direct offices in China. To support its expansion in China, it is setting up two more customer contact centres in Shanghai and Guangzhou.
 
Her added that the group will continue to invest in its overseas offices and in capacity-building as part of its long-term growth strategy.
 
For the current financial quarter under review, the group recorded a profit before tax (PBT) of RM0.37 million compared to RM3.10 million in the previous year’s corresponding quarter. Profit before tax for the first half year to June 30 2013 amounted to RM0.99 million compared to RM3.72 million in the first half of 2012.
 
On prospects, the board remains optimistic of the group’s performance for the current financial year with strong contributions from the overseas offices and new products and services, especially the Interactive Self Ordering Tablets which are expected to be launched during in the second half of the year.
 
Meanwhile, Cuscapi will be officially transferred from the ACE market to Bursa Malaysia’s Main board today (Sept 4). This follows its recent corporate exercises involving a renounceable rights issue of up to 146,749,640 new shares of RM0.10 each, together with one free warrant for every subscribed and fully paid rights shares and one free bonus for every two subscribed and fully paid rights shares.
 
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