TIDMRCI
RNS Number : 0192A
RapidCloud International PLC
24 September 2015
RapidCloud International Plc
("RapidCloud", the "Company" or the "Group")
Half Yearly Report
RapidCloud International plc (AIM:RCI), the computing services,
web-hosting and web-solutions provider based in Southeast Asia,
announces its results for the six months ended 30 June 2015.
Financial highlights
-- Revenue of RM 7.8m (H1 2014: RM 6.1m)
o Recurring revenue now 43% of total revenues (H1 2014:
48.9%)
o Goods and Services Tax implementation process temporarily
slowed non-vital spending in Malaysia, a core revenue centre for
the Company
-- Gross profit increase of 14% to RM 4.4m (H1 2014: RM 3.9m)
o Gross profit margin of 57% (H1 2014: 64%)
-- Operating profit of RM 0.6m (H1 2014: RM 1.2m)
o Certain of our businesses previously accounted for as
associates are now consolidated
-- Net profit attributable to shareholders of RM 0.8m (H1 2014: RM 1.1m)
-- Cash at 30 June 2015 of RM 13.6m (H1 2014: RM6.0m)
-- Trade receivables RM 9.9m (H1 2014: 4.7m)
-- Intention to pay interim dividend within Q4 2015
Operational highlights
-- Strategic partnership with CS Loxinfo PCL, a leading Internet Service Provider
-- Hewlett Packard joined the Strategic Partnership within the period under review
-- Contract Win with Redbox, the courier service of AirAsia, to
implement an online Booking and Tracking portal
-- Contract wins with two major international enterprises, a
global printing firm and a Southeast Asian airline
-- Strong new business pipeline for H2, a typically weightier
half in terms of new business conversion for the Company
-- Equity subscription raised GBP1.74m at 54p per ordinary share
-- Appointment of Cindy Choo as Finance Director
Post period-end highlights
-- Strategic partnership with Oriented Media Group Berhad to
develop business-to-business E-commerce platform for sportswear
manufacturers, wholesalers and retailers across Asia
o Contract has significant scale potential
-- Completion of Sales and Operational integration with
RapidCloud Singapore (formerly known as Exxelnet Solutions Pte
Ltd).
-- Introduction of Digital Marketing as a new business unit
Raymond Chee, Chief Executive of RapidCloud, commented:
"The first half of the year saw us continue to grow revenues,
achieving RM7.8m. This was despite a slowdown in non-essential
spending generally across Malaysia following the implementation of
the Goods and Services Tax (similar to VAT) on 1 April 2015. I am
pleased to say that this destabilising period has now passed. The
successful execution of our integration plan with RapidCloud
Singapore enables us to quickly deliver a host of new products and
services whilst the formation of the Digital Marketing business
unit provides a strong footing to upsell services that enables our
customers to effectively promote their brands online."
"We continue to invest in our cloud infrastructure and the
strategic partnerships we have made put us in a strong position as
a Company. The Company has historically produced more of its
revenues in the second half. The combination of this, the return to
normality of trading following the impact of the Goods and Services
Tax and the number of attractive projects embarked upon and in the
pipeline lead the Board to be confident of achieving market
expectations for the current financial year."
Enquiries
RapidCloud International investorqueries@rapidcloudasia.com
Plc
Raymond Chee, Managing
Director
David Cotterell, Chairman
WH Ireland, Nominated Adviser Tel:+44 (0)20 7220 1666
and Broker
Adrian Hadden
Mark Leonard
Walbrook, Financial PR Tel: 44 (0)20 7933 8792
and IR rapidcloud@walbrookpr.com
Paul Cornelius
Guy McDougall
Sam Allen
About RapidCloud
RapidCloud, provides computing services, web-hosting and
proprietary web-solutions, such as web-site building and e-commerce
solutions. The Company is based in Southeast Asia and is one of the
few solutions providers in the region to deliver its offerings
through all three available Cloud Computing segments, i.e.
Software-as-a-Service, Infrastructure-as-a-Service and
Platform-as-a-Service.
Formed in 1999 the Company has a well-established cloud offering
with a customer base of over 42,000. These are predominantly SMEs
but also include blue-chip clients such as Deloitte, BAE Systems
and Canon, for which RapidCloud's extensive R&D department
creates bespoke software solutions.
RapidCloud currently has operations in Malaysia, Indonesia,
Singapore, Thailand and the Philippines. According to industry
research commissioned by RapidCloud from Frost & Sullivan in
2013, the Cloud Computing industry in Asia Pacific is expected to
grow at a CAGR of 49.6% between 2013 and 2015, giving a market size
of US45.6 billion by 2015. RapidCloud International plc was
admitted to AIM on 14 August 2013. For further information, please
visit www.rapidcloudasia.com
Chief Executive's Review
Financial performance
We were pleased to deliver a 28% increase in revenues over the
comparative period in 2014, which itself had seen a 26% rise over
the same period last year. Revenues for the first half of 2015
increased to RM 7.8m (H1 2014: RM 6.1m) due to both organic growth
and the contribution of the newly acquired subsidiary, RapidCloud
Singapore Pte Ltd ('RCSG'). The proportion of revenues which were
recurring remained broadly steady at 43% (H1 2014: 48.9%).
Gross profit for the period increased 14% to RM 4.4m (H1 2014:
RM 3.9m), with our gross profit margin decreasing to 57% (H1 2014:
64%) as the result of increase in hosting charges due to additions
of new subsidiaries. Operating profit was RM 0.6m (H1 2014: RM
1.2m). Profit for the financial period after tax and basic earnings
attributable to ordinary shareholders RM 0.8m (H1 2014: RM
1.1m).
Pre-tax profit decreased from RM1.15m to RM595,000 due to
administration costs associated with the consolidation of
associates becoming subsidiaries for Thailand and the Philippines,
and the administration costs of our new subsidiary in Singapore and
Indonesia.
Furthermore, although overall revenue for the group was higher
than the comparative period last year, we experienced slower sales
in Malaysia. This was due to the newly implemented Goods &
Services Tax on 1 April 2015, which is the equivalent of VAT in the
UK. During the implementation process organizations across the
country could be seen to be delaying on non-vital spending. This
somewhat chaotic period has now passed and business life has
returned to normal in the territory.
In June we announced we had raised GBP1.74m (before expenses) by
way of a subscription for 3,231,138 new ordinary shares by the
Southeast Asian asset management firm, Corston-Smith Asset
Management.
During 2014, the company made significant progress, both in
terms of financial performance and operational capabilities. In
particular, the earnings enhancing acquisition of Exxelnet
Solutions Singapore, now renamed RapidCloud Singapore, has provided
the Company new products and skillsets and accelerated its growth
further.
Since the beginning of 2015, the Company has continued to invest
in sales and marketing functions and recently launched several new
software products specifically designed for the enterprise segment,
significantly expanding its addressable market.
Our cash position at 30 June 2015 was RM 13.6m (H1 2014:
RM6.0m), with trade receivables of RM 9.9m (H1 2014: 4.7m).
Further to the announcement made in our final results for the
year ended 31 December 2014, published on 3 June 2015, the Company
intends to pay an interim dividend within 2015. The intention is to
pay this within the final quarter of this year. Further
announcements will be made in due course.
Operational Review
The period saw us convert several new business wins with major,
and in some cases, global organisations and successfully execute on
our stated strategy to move up the value chain in terms of higher
margin and higher value projects. We continue to pick up a steady
stream of day-to-day corporate deals which alone, we are confident,
will see us achieve management expectations for the full year.
There were however a number of substantial projects for which
the onset was delayed due to the Goods and Services Tax slowdown in
Malaysia. I am pleased to report the majority of these have now
commenced.
Furthermore, there are a number of new business opportunities
which we expect to be awarded within the remainder of this year.
This follows businesses emerging from the period of the Good and
Services Tax implementation and putting work out to tender.
Most significantly, we are waiting for the outcome of a number
of sizeable deals being handled by key RapidCloud Executives. A
positive conversion rate in this regard would have significant and
positive effects on full year revenues.
It is worthy of note that RapidCloud traditionally converts a
larger proportion of new business in the second half the year.
Management expects this trend to be repeated for this calendar
year.
I am also pleased to report that the geographic expansion
completed last year and the subsequent investment required to do
this, has now begun to yield a significant level of new cross
selling opportunities across the group.
Strategic Partnership with CS Loxinfo and HP
In February we announced a strategic partnership and
distributorship with CS Loxinfo PCL., a leading systems integrator
and Internet Services Provider (ISP) in Thailand, for an initial
period of three years. CS Loxinfo is one of the longest standing
and most recognised ISP brands in Thailand, providing Internet data
centre services, leased line, broadband and satellite services for
domestic and international communications in Thailand. They have a
considerable and wide-reaching customer base.
(MORE TO FOLLOW) Dow Jones Newswires
September 24, 2015 02:00 ET (06:00 GMT)
The partnership allows CS Loxinfo to offer its large-scale
enterprises and SME customers a selection of RapidCloud's
enterprise cloud applications, beginning with RapidCRM, the Sales
Automation and Management tool, on a revenue sharing basis.
RapidCRM will be offered to enterprises in a choice of public-cloud
or on-premise cloud environment.
Teleco companies play a central role in our growth strategy and
we expect this partnership to accelerate the Company's presence
within the Thailand enterprise market. We were delighted to
announce in June, that Hewlett Packard has joined the partnership
through the provision of their HP Helion OpenStack ("HP Helion")
platform with multiple large-bandwidth redundant connections to
International and domestic Internet gateways over a secure and
scalable on-premise or public cloud delivery environment.
All three parties within this strategic partnership complement
each other to deliver secure and scalable cloud services with a
wide variety of 'Software As A Service' offerings, with RapidCloud
receiving a share of the software revenue and CS Loxinfo and HP
receiving either project-based installation fees or 'Infrastructure
As A Service' revenue over the term of the strategic
partnership.
Redbox, Air Asia
In April, we announced a contract with RedBox, the award-winning
courier service of Air Asia, for an initial period of five
years.
The agreement sees RapidCloud designing, building and operating
a cloud-based Logistic Management System (LMS) for RedBox, with the
proprietary LMS will providing a complete end-to-end solution to
monitor Redbox's entire shipment network with a fully integrated
online Booking & Tracking portal.
RedBox has contracts with several of the largest e-commerce
enterprises in Asia Pacific, and is experiencing rapid growth.
Industry forecasts state, Asia Pacific will surpass North America
as the main e-commerce market in the world within 2015, at
USD$681.2 Billion(1) .
(1)
http://www.emarketer.com/Article/Global-B2C-Ecommerce-Sales-Hit-15-Trillion-This-Year-Driven-by-Growth-Emerging-Markets/1010575
RapidCloud will receive royalty revenue from each transaction
processed by the LMS. The Company envisages that the agreement will
generate revenues for RapidCloud of at least GBP150,000 in the
first year with material increases thereafter.
Contracts with major two international enterprises
In May we announced contract wins with one of the world's
leading printing enterprises and a major Southeast Asian airline,
for our newly launched PortalWEB product worth an aggregate
GBP180,000 in the first year.
For the printing enterprise RapidCloud will build a framework
and workflow system to handle internal purchase requisition,
purchase orders, invoices, budgeting, contracts and assets
management to automate the internal procurement approval
processes.
For the airline, RapidCloud will build an internal Training
Management System ("TMS") on its PortalWEB platform. The TMS
application will be developed to manage job posting, job
recruitment, coaching, candidate profiling and on-the-job
assessments. Job seekers, recruiters, trainers and administrative
users will be granted different access controls and functionality
to perform individual tasks. Dashboards for Business Intelligence
analysis will provide an overview of the various key performance
indicators of the entire placement processes enabling company-wide
decision making.
Post Period End - Agreement with OMEDIA
Post the period end, we announced a significant partnership
agreement with the Oriented Media Group Bhd ("OMEDIA") to develop a
comprehensive business-2-business e-commerce platform for small to
medium sportswear manufacturers, wholesalers and retailers across
Asia.
OMEDIA is a Malaysia-based company focussed on software and
services across the logistics and digital media industries. The
logistics business offers web-based management systems to manage
complex logistics networks while the digital media business offers
a range of services including publishing massive multiplayer online
games internet advert serving and the development of 'edutainment'
related products and services. OMEDIA is listed on the Malaysian
stock exchange with a market capitalisation of RM53.4m as of 18
September 2015.
Under the 24 month agreement, the Company will supply all the
necessary hardware and software for OMEDIA to develop an Online
Sportswear Trading Platform to enable manufacturers, initially
across the Fujian province of the Peoples Republic of China ("PRC")
to market and trade their products with wholesalers and retailers
directly online.
The PRC e-commerce market is growing rapidly with global
ecommerce sales volume increasing from USD561.0 billion in 2010 to
USD1.2trillion in 2014. In particular, the ecommerce market in PRC
is estimated to contribute approximately 40% of the global
e-commerce market, having recorded a Compound Annual Growth Rate of
62% over the last six years(2) .
(2) Independent Market Research Report, Smith Zander
International, Malaysia
Agreement Value
The agreement is worth a minimum of GBP760,000 for hosting and
maintaining the Online Sports Trading Platform. However, the
agreement could be worth up to GBP3.39m dependent upon the adoption
of the additional modules offered by RapidCloud. The Company
expects receipt of revenues on this contract in the final quarter
of this year.
Outlook
The first half of the year saw us continue to grow revenues,
achieving RM7.8m. This was despite a slowdown in non-essential
spending generally across Malaysia following the implementation of
the Goods and Services Tax (similar to VAT) on 1 April 2015. I am
pleased to say that this destabilising period has now passed. The
successful execution of our integration plan with RapidCloud
Singapore enables us to quickly deliver a host of new products and
services whilst the formation of the Digital Marketing business
unit provides a strong footing to upsell services that enables our
customers to effectively promote their brands online
We continue to invest in our cloud infrastructure and the
strategic partnerships we have made put us in a strong position as
a Company. The Company has historically produced more of its
revenues in the second half. The combination of this, the return to
normality of trading following the impact of the Goods and Services
Tax and the number of attractive projects embarked upon and in the
pipeline lead the Board to be confident of achieving market
expectations for the current financial year.
Consolidated Interim Statement of Comprehensive Income
for the six months ended 30 June 2015
Notes (Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
to to
30 June 30 June 31 December
2015 2014 2014
(RM'000) (RM'000) (RM'000)
-------------------------- ----------- ------------
Continuing operations
Revenue 2 7,838 6,088 17,820
Cost of sales (3,396) (2,188) (8,146)
-------------------------- ----------- ------------
Gross profit 4,442 3,900 9,674
Other operating income 97 48 1,149
Administrative expenses (3,936) (2,786) (7,559)
Share of losses from
associate - 4 -
-------------------------- ----------- ------------
Operating profit 603 1,166 3,264
Finance costs (8) (10) (26)
-------------------------- ----------- ------------
Profit before tax 595 1,156 3,238
Income tax expense (21) (27) (50)
-------------------------- ----------- ------------
Profit for the year 574 1,129 3,188
-------------------------- ----------- ------------
Other comprehensive
income
Exchange differences
on translation of
foreign operations (41) - (100)
-------------------------- ----------- ------------
Total comprehensive
income 533 1,129 3,088
-------------------------- ----------- ------------
Profit attributable
to:
Equity owners of
the parent company 767 1,129 3,671
Non-controlling interests (193) - (483)
-------------------------- ----------- ------------
574 1,129 3,188
-------------------------- ----------- ------------
Total comprehensive
income attributable
to:
Equity owners of
the parent company 771 1,129 3,609
Non-controlling interests (238) - (521)
-------------------------- ----------- ------------
(MORE TO FOLLOW) Dow Jones Newswires
September 24, 2015 02:00 ET (06:00 GMT)
533 1,129 3,088
-------------------------- ----------- ------------
Earnings per share
Basic (Sen) 3 4.11 6.50 20.59
Diluted (Sen) 3 3.97 6.50 19.86
-------------------------- ----------- ------------
Consolidated Interim Statement of Financial Position
as at 30 June 2015
Notes (Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
to to
30 June 30 June 31 December
2015 2014 2014
(RM'000) (RM'000) (RM'000)
-------------- ----------- ------------
ASSETS
Non-current assets
Property, plant and
equipment 4 6,032 4,314 5,215
Software development
assets 5 2,622 2,412 2,491
Investment in associate
companies - 1,076 -
Intangible assets
and goodwill 5,839 - 5,839
-------------- ----------- ------------
14,493 7,802 13,545
-------------- ----------- ------------
Current assets
Trade and other receivables 6 11,623 5,895 11,191
Amounts owed by associates - 2,143 -
Cash and cash equivalents 13,604 6,018 3,931
Taxation recoverable 111 - 68
-------------- ----------- ------------
25,338 14,056 15,190
-------------- ----------- ------------
Total assets 39,831 21,858 28,735
-------------- ----------- ------------
LIABILITIES
Current liabilities
Trade and other payables 2,463 915 2,393
Hire purchase liabilities 222 38 62
Taxation payable - 747 -
-------------- ----------- ------------
2,685 1,700 2,455
-------------- ----------- ------------
Non-current liabilities
Hire purchase liabilities 457 613 457
Deferred tax liability 86 73 86
-------------- ----------- ------------
543 686 543
-------------- ----------- ------------
Total liabilities 3,228 2,386 2,998
-------------- ----------- ------------
Net assets 36,603 19,472 25,737
-------------- ----------- ------------
EQUITY
Capital and reserves
attributable to equity
holders
Share capital 7 34,942 21,643 24,609
Shares to be issued 2,074 - 2,074
Merger reserve (13,260) (13,260) (13,260)
Currency translation
reserve (58) - (62)
Retained earnings 13,823 11,089 13,056
-------------- ----------- ------------
37,521 19,472 26,417
Non-controlling interest (918) - (680)
-------------- ----------- ------------
36,603 19,472 25,737
-------------- ----------- ------------
Consolidated Interim Statement of Cash Flow
six months ended 30 June 2015
Notes (Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
to to
30 June 30 June 31 December
2015 2014 2014
(RM'000) (RM'000) (RM'000)
----------- ----------- ------------
Cash flows from operating
activities
Profit before tax 595 1,156 3,238
Adjustments for non-cash
items
Depreciation 4 282 290 683
Amortisation of software
development assets 5 379 426 931
Amortisation of website
assets - - 1
Gain on disposal
of equipment - (1) (60)
Equipment written
off - - 2
Impairment of trade
receivables 6 - - 62
Foreign exchange
loss/(gain) (6) 8 46
Waiver of loan by
subsidiary's director - - (862)
Share of loss/(profit)
from associate - (4) -
Finance income (1) (34) (52)
Finance costs 8 10 26
----------- ----------- ------------
Operating profit
before working capital
changes 1,257 1,851 4,015
Increase in trade
and other receivables (423) 613 (1,216)
Decrease in trade
and other payables 70 46 (1,262)
----------- ----------- ------------
Cash generated from
operations 904 2,510 1,537
Interest paid (8) (10) (26)
Interest received 1 34 52
Tax paid (62) (98) (929)
----------- ----------- ------------
Net cash from operating
activities 835 2,436 634
----------- ----------- ------------
Cash flow from investing
activities
Purchase of property,
plant and equipment (847) (1,427) (2,060)
Proceeds from sales
of property, plant
and equipment - 2 78
Software development
expenditure 5 (510) (620) (1,204)
Advances to associates - (560) -
Acquisition of subsidiaries
(net of cash received) - - (2,465)
----------- ----------- ------------
Net cash used in
investing activities (1,357) (2,605) (5,651)
----------- ----------- ------------
Consolidated Interim Statement of Cash Flow (continued)
six months ended 30 June 2015
Notes (Unaudited) (Unaudited) (Audited)
Six months Six months Year ended
to to
30 June 30 June 31 December
2015 2014 2014
(RM'000) (RM'000) (RM'000)
----------- ----------- ------------
Cash flows from financing
activities
Dividends paid - - (575)
Advances from subsidiary's
director - - 529
Repayment of hire
purchase liabilities (90) (51) (172)
Proceeds on issue
of placing shares 7 10,333 - 2,966
----------- ----------- ------------
Net cash from financing
activities 10,243 (51) 2,748
----------- ----------- ------------
Net (decrease)/increase
in cash and cash
equivalent 9,721 (220) (2,269)
----------- ----------- ------------
Effect on exchange
rate changes on cash
and cash equivalent (48) - (38)
----------- ----------- ------------
Cash and cash equivalents
at the beginning
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of the period 3,931 6,238 6,238
----------- ----------- ------------
Cash and cash equivalents
at the end of the
period 13,604 6,018 3,931
----------- ----------- ------------
Consolidated Interim Statement of Changes in Equity
six months ended 30 June 2015
Share Share Merger Foreign Retained Total Non-controlling Total
capital to be issued reserve Currency earnings RM'000 interests equity
RM'000 RM'000 RM'000 Translation RM'000 RM'000 RM'000
Reserve
RM,000
--------- -------------- --------- ------------ ---------- -------- ---------------- --------
Balance on 1
January 2014 21,643 - (13,260) - 9,960 18,343 - 18,343
Total
comprehensive
income
Profit for the
period - - - - 1,129 1,129 - 1,129
Balance at 30
June 2014 21,643 - (13,260) - 11,089 19,472 - 19,472
--------- -------------- --------- ------------ ---------- -------- ---------------- --------
Transaction with
owners,
recorded
directly in
equity
Acquisition of
subsidiary
companies - 2,074 - - - 2,074 (159) 1,915
Issue of placing
shares 3,235 - - - - 3,235 - 3,235
Share issue
costs (269) - - - - (269) - (269)
Dividends paid - - - - (575) (575) - (575)
--------- -------------- --------- ------------ ---------- -------- ---------------- --------
Total
comprehensive
income
Profit for the
year - - - - 2,542 2,542 (483) 2,059
Others
comprehensive
income - - - (62) - (62) (38) (100)
Balance at 31
December
2014 24,609 2,074 (13,260) (62) 13,056 26,417 (680) 25,737
--------- -------------- --------- ------------ ---------- -------- ---------------- --------
Transaction with
owners,
recorded
directly in
equity
Issue of placing
shares 10,333 - - - - 10,333 - 10,333
--------- -------------- --------- ------------ ---------- -------- ---------------- --------
Total
comprehensive
income
Profit for the
period - - - - 767 767 (193) 574
Others
comprehensive
income 4 4 (45) (41)
Balance at 30
June 2015 34,942 2,074 (13,260) (58) 13,823 37,521 (918) 36,603
--------- -------------- --------- ------------ ---------- -------- ---------------- --------
Notes to Financial Statements
six months ended 30 June 2015
1. Accounting policies
This consolidated interim financial information, which is
unaudited for the half-year ended 30 June 2015, has been prepared
on a consistent basis in accordance with the International
Financial Reporting Standards ('IFRS') as adopted by the European
Union ('EU') issued by the International Accounting Standards Board
('IASB').
They do not contain all of the information required for the full
financial statements and should be read in conjunction with the
consolidated financial statements of the Group as at and for the
year ended 31 December 2014. These interim financial statements do
not constitute statutory accounts within the meaning of the
Companies Act.
This consolidated interim financial information has been
prepared in accordance with AIM Rules for Companies and IAS 34
'Interim Financial Reporting' and is presented in Malaysia Ringgit
('RM') which is the currency of the primary economic environment in
which the Group operates. The functional currency for each
individual entity is the local currency of that individual entity.
All amounts are prepared to the nearest thousand (RM'000) except
where otherwise indicated.
RapidCloud International plc ('RCI' or the 'Company') is a
company registered and incorporated in Jersey on 15 March 2013. The
address of the registered office is 13-14 Esplanade, St. Helier,
Jersey, JE1 1BD.
2. Operating segments
An operating segment is a component of the Group that engages in
business activities from which it may earn revenues and incur
expenses. IFRS 8 'Operating Segments' requires disclosure of the
operating segments that are reported to the Chief Operating
Decision Maker ('CODM'). The CODM at the end of the financial
period under review is the Board of Directors, who have
responsibility for planning and controlling the activities of the
Group. The Group's reportable segment has been identified as the
provision of Cloud Computing services. Across the Group there is
considered to be a commonality in the nature of services, the type
of customer, the methods used to provide services and the
regulatory environment.
All operations of the Group are carried out in South East Asia.
All revenues therefore arise within South East Asia. No single
external customer amounts to 10 per cent or more of the Group's
revenues.
As the Group only has one reportable segment, no further
segmental information is disclosed.
3. Earnings per share
The calculation of the basic and diluted earnings per share is
based on the following:
Six months Six months Year ended
to 30 June to 30 June 31 December
2015 RM'000 2014 2014
RM'000 RM'000
------------ ----------- ------------
Profit for the financial
period and basic earnings
attributed to ordinary
shareholders 767 1,129 3,671
------------ ----------- ------------
Number Number Number
------------ ----------- ------------
Weighted average numbers
of ordinary shares 18,656,752 17,368,971 17,831,934
Sen Sen Sen
---- ---- -----
Earnings per share:
Basic 4.11 6.50 20.59
Diluted 3.97 6.50 19.86
---- ---- -----
If the basic earnings per share is diluted by the 650,000
deferred contingent shares to be issued as part of the acquisition
of RapidCloud Singapore Pte. Ltd., the dilutive earnings per share
would be 3.97 Sen (31 December 2014: 19.86 Sen; 30 June 2014: 6.50
Sen).
4. Property, plant and equipment
Fixtures, Office Computers Motor Renovation Signboard Sun Total
fittings equipment RM'000 vehicles RM'000 RM'000 Microsystems RM'000
& equipment RM'000 RM'000 equipment
RM'000 RM'000
------------------------------- ----------------------------- ---------- --------- ----------- ---------- ------------ -------
Year ended
30 June
2015
Cost
At 1
January
2015 1,003 740 2,516 657 2,463 32 465 7,876
Additions 149 22 658 218 - - - 1,047
Disposals - - - - - - - -
Impaired/ - - - - - - - -
Written
off
Exchange
difference 5 8 5 - 48 - - 66
------------------------------- ----------------------------- ---------- --------- ----------- ---------- ------------ -------
At 30 June
2015 1,157 770 3,179 875 2,511 32 465 8,989
------------------------------- ----------------------------- ---------- --------- ----------- ---------- ------------ -------
Charge for
the
year
At 1
January
2015 134 104 1,465 196 272 25 465 2,661
Charge for
the
year 33 34 102 40 72 1 - 282
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Disposals - - - - - - - -
Impaired/ - - - - - - - -
written
off
Exchange
difference 3 3 3 - 5 - - 14
------------------------------- ----------------------------- ---------- --------- ----------- ---------- ------------ -------
At 30 June
2015 170 141 1,570 236 349 26 465 2,957
------------------------------- ----------------------------- ---------- --------- ----------- ---------- ------------ -------
Net book
value
At 30 June
2015 987 629 1,609 639 2,162 6 - 6,032
------------------------------- ----------------------------- ---------- --------- ----------- ---------- ------------ -------
4. Property, plant and equipment (continued)
Fixtures, Office Computers Motor Renovation Signboard Sun Total
fittings equipment RM'000 vehicles RM'000 RM'000 Microsystems RM'000
& equipment RM'000 RM'000 equipment
RM'000 RM'000
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
Period ended 30
June 2014
Cost
At 1 January
2014 731 395 1,440 850 1,395 32 465 5,308
Additions 162 112 1,118 - 35 - - 1,427
Disposals (60) (38) - - - - - (98)
Impaired - - - - - - - -
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
At 30 June 2014 833 469 2,558 850 1,430 32 465 6,637
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
Depreciation
At 1 January
2014 85 57 1,234 218 49 21 465 2,129
Depreciation
charge 37 19 78 85 70 1 - 290
Disposals (59) (37) - - - - - (96)
Impaired - - - - - - - -
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
At 30 June 2014 63 39 1,312 303 119 22 465 2,323
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
Net book value
At 30 June 2014 770 430 1,246 547 1,311 10 - 4,314
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
4. Property, plant and equipment (continued)
Fixtures, Office Computers Motor Renovation Signboard Sun Total
fittings equipment RM'000 vehicles RM'000 RM'000 Microsystems RM'000
& equipment RM'000 RM'000 equipment
RM'000 RM'000
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
Year ended 31
December
2014
Cost
At 1 January
2014 731 395 1,440 850 1,395 32 465 5,308
Acquisition of
subsidiaries 43 60 34 - 624 - - 761
Additions 288 319 1,045 - 408 - - 2,060
Disposals (60) (38) - (193) - - - (291)
Impaired/
Written
off - - (3) - - - - (3)
Exchange
difference 1 4 - - 36 - - 41
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
At 31 December
2014 1,003 740 2,516 657 2,463 32 465 7,876
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
Charge for the
year
At 1 January
2014 85 57 1,234 218 48 21 465 2,129
Acquisition of
subsidiaries 29 27 26 - 36 - - 118
Charge for the
year 80 55 206 154 184 4 - 683
Disposals (60) (37) - (176) - - - (273)
Impaired/
written
off - - (1) - - - - (1)
Exchange
difference - 2 - - 4 - - 6
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
At 31 December
2014 134 104 1,465 196 272 25 465 2,661
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
Net book value
At 31 December
2014 869 636 1,051 461 2,191 7 - 5,215
------------ ----------- ---------- ---------- ----------- ---------- --------------- --------
5. Software development expenditure
Six months to Six months to Year ended
30 June 2015 30 June 2013 31 December
RM'000 RM'000 2014
RM'000
------------- ------------- ------------
Cost
At the beginning of the
period 5,299 4,095 4,095
Additions 510 620 1,204
------------- ------------- ------------
At the end of the period 5,809 4,715 5,299
------------- ------------- ------------
Accumulated amortisation
At the beginning of the
period 2,808 1,877 1,877
Charge for the financial
period 379 426 931
------------- ------------- ------------
At the end of the period 3,187 2,303 2,808
------------- ------------- ------------
Carrying amount
At the end of the period 2,622 2,412 2,491
------------- ------------- ------------
Software development assets comprise capitalised development
work on software products. These costs are internally generated
wages and salaries costs arising from the Group's software
development and are recognised only if all the following conditions
are met:
-- an asset is created that can be identified;
-- it is possible that the asset created will generate future economic benefit; and
-- the development cost of the asset can be measured reliably.
Once development has been completed the software development
intangible assets are amortised on a straight-line basis over their
useful lives, which is assessed annually and is currently
considered to be 5 years.
The Group assesses at each reporting date whether there is an
indication that an asset may be impaired. If any such indication
exists, or when annual impairment testing for an asset is required,
the Group makes an estimate of the asset's recoverable amount. An
asset's recoverable amount is the higher of an asset's or
cash-generating unit's fair value less costs to sell and its value
in use and is determined for an individual asset, unless the asset
does not generate cash inflows that are largely independent of
those from other assets or groups of assets. Where the carrying
amount of an asset exceeds its recoverable amount, the asset is
considered impaired and is written down to its recoverable
amount.
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