SINGAPORE (Feb 22): Technology company Declout saw FY16 earnings more than double to $7.8 million while revenue rose 8.8% to a record high of $304 million.

Declout said strong performance in the group’s IT Infrastructure Services segment and the divestment of its subsidiary, Acclivis, drove the 26% increase in net profit after tax to a record $9.7 million.

In 4Q16, earnings more than doubled to $10.9 million from $5.2 million a year ago on higher other income which increased by $22.8 million to $24 million mainly due to the gain arising from the divestment of ATS and the gain on bargain purchase from acquisition of a new subsidiary.

4Q revenue increased 0.2% to $91.2 million from $91 million. The IT Infrastructure Services segment grew by 4.8% or $3.1 million, while the Vertical Domain Cloud (VDC) segment declined 10.7% or $2.9 million mainly due to the lack of blockbuster games compared to previous year.

Revenue growth in IT Infrastructure Services segment was impacted by the loss of two months revenue from the divestment of ATS coupled with a 17% devaluation of GBP against SGD during the period, total amounting to $13.2 million.

Had the group not been impacted by these two factors, revenue growth in the IT Infra segment would have been higher at 25.4% or $16.3 million, and total revenue would have increased by 14.7% or $13.4 million.

In its outlook, Declout’s venture arm, DeClout Ventures, has begun scouting for investments after it was awarded a $10 million venture capital fund in partnership with the National Research Foundation.

The funds will be used to source for disruptive technologies and business models in line with the group’s corporate strategy.

Shares of Declout closed at 18 cents on Wednesday. As at end Dec, the group’s net asset value per share stood at 18.38 cents, a 21% increase from the previous year.