Declout reports 3Q losses of $3.3 mil on Procurri IPO costs

Declout reports 3Q losses of $3.3 mil on Procurri IPO costs

By: 
Benjamin Cher
10/11/16, 07:05 pm

SINGAPORE (Nov 10): Declout reported a $3.3 million loss for 3Q16 driven mainly by Procurri’s listing expenses of $2.2 million. Excluding the one-time Procurri expenses, 3Q16 losses would be at $1.1 million due to operating losses from subsidiaries. 

Revenue for the quarter rose 20.2% to 81.2%, driven by improved contributions from existing businesses (10.7%) as well as newly acquired subsidiaries (9.5%).

The effect of Brexit of the weakening Pound and economy in the UK is expected to persist and drag the UK operation’s performance – which contributes 10% of revenue – according to the company.

The bleak economic outlook in Singapore coupled with global markets volatility will also pose challenges for Declout.

However, the company is confident of its position with the completion of the $27.9 million divestment of Acclivis targeted for end of Nov 16.

“The nature, and paradox of our business, is such that our performance will be cyclical whenever we enjoy a harvest as there will be periods where we may incur spin-off expenses to actualise our plans,” says CEO Vesmond Wong.

The company aims to groom Beaqon into a major information and communications technology enabler through suitable M&A opportunities to be poised as the third potential harvest.

“In delivering on our commitment to shareholders, the Group plans to reward shareholders by the end of 2016, in line with our strategy to generate returns to shareholders in less than five years,” adds Wong.

Shares of Declout closed up 0.7 cents at 18.5 cents on Thursday.

 

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