SINGAPORE (Feb 27): Zico Holdings, the multi-disciplinary professional services provider, reported a 32.4% rise in FY17 earnings to RM5.7 million ($1.9 million) from a year ago.
Net profit of RM6.9 million -- the highest since its IPO in November 2014 --was achieved on the back of a 23% increase in revenue to RM81.9 million in FY17 from RM66.7 million in FY16.
Topline growth was propelled by higher revenue from Zico's Advisory and Transactional Services (ATS) division which contributed 36% to RM58.0 million in FY17. Management and Support Services Business & Licensing Services (MSSL) dipped 0.8% to RM23.9 million.
Zico Capital Singapore and Zico Capital Malaysia obtained their respective capital markets services licenses in Jul 2016 and Nov 2017. Zip SG also completed two IPOs in FY17, contributing to the performance of the ATS division, the business activities of which include asset and wealth management, and multi-asset management services.
Expenses in FY17 rose due to higher employee benefits, up 27% to RM45.0 million due to additional headcount, especially for the ATS management teams and higher operating leases of RM6.0 million for new business premises.
Despite the higher expenses, Zico's net profit in FY17 grew at a faster rate than revenue. Earnings per share on a fully diluted basis increased to 1.90 sens in FY17 from 1.50 sens in FY16. Net Asset Value per share as at Dec 31 2017 increased to 37.17 sens from 33.81 sens a year ago.
As at Dec 2017, the group reported cash and cash equivalents of RM20.3 million.
In its outlook, Zico says it will deepen its presence by adding competencies in each country; increase synergies and economies of scale through cross-selling and referral of services and sharing resources, and by accelerating capital markets activities in Singapore and Malaysia.
Shares in Zico last traded at 26 cents on Feb 19.
