Azeus Systems Holdings, the Hong Kong-based IT consultancy services provider has more than doubled its earnings in 1HFY2021 to HK$11.0 million ($1.9 million) from the HK$4.9 million reported a year ago.

Earnings per share (EPS) for the half-year period rose 121% y-o-y to 36.5 HK cents, compared to the 16.5 HK cents the year before.

Revenue was up 10.2% y-o-y to HK$79.4 million driven by a “significant growth” from the Azeus Products segment, who was also the largest contributor in 1HFY2021.

Revenue for Azeus Products rose 36.8% y-o-y to HK$51.8 million, which accounted for 65.2% of the group’s total revenue. The higher figures were attributable to the sale of Azeus Systems’ proprietary products, “Azeus Convene” and “AzeusCare”, as well as their associated professional services.

<hr/><strong>See: <a href="https://www.theedgesingapore.com/capital/results/azeus-systems-swings-back-profitability-fy18-earnings-032-mil"  target="_blank">Azeus Systems swings back to profitability in FY18 with earnings of $0.32 mil</a></strong><hr/>

Revenue contribution from IT Services fell 19.3% to HK$27.6 million due to fewer projects and enhancements secured during the period. The segment accounted for 34.8% of the group’s total revenue for the 1HFY2021 compared to the 47.5% registered the year before.

The group also recorded sales of third-party hardware and software of HK$0.5 million due to the delivery and acceptance of a small project that was completed during the half-year period.

Gross profit margin improved by 2.7 percentage points to 46.8% in 1HFY2021 compared to 44.1% in 1HFY2020.

The group’s shareholders’ equity rose to HK$113.2 million as at Sept 30 from HK$100.9 million as at March 31, mainly due to the net profit of HK$11.0 million generated from the group’s businesses and HK$1.3 million of foreign currency reserve generated in 1HFY2021.

As at Sept 30, cash and cash equivalents stood at HK$124.4 million.

In its outlook statement, the group says it expects lower revenue from its IT Services segment, while expecting revenue for its Azeus Products segment to continue its growth trajectory.

<strong>For more stories about where the money flows, click <a href="https://www.theedgesingapore.com/section/capital"  target="_blank">here</a> for our Capital section</strong>

As such, it remains “cautiously optimistic” for FY2021.

“Our proprietary products, which has a presence across 100 countries, continue to gain traction with leading organisations across various industries. We are driven to develop effective software solutions that continue to meet demand in the marketplace, and we will widen our reach and grow our base of recurring income, thereby reinforcing our cash flow visibility,” says Lee Wan Lik, Azeus’ managing director.

Shares in Azeus closed 11 cents lower or 7.7% down at $1.31 on Nov 13.

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