DeClout expects to return to profitability in FY18

DeClout expects to return to profitability in FY18

By: 
Samantha Chiew
05/03/18, 10:54 am

SINGAPORE (Mar 5): DeClout expects to reduce its losses over the course of the year and return to profitability in FY18 given there should be no further losses from Corous360 after restructuring, the absence of major impairments and exceptional items and further reductions in expenses.

Overall, subsidiaries Beaqon, vCargo Cloud and Procurri are also expected to perform better.

The guidance comes after DeClout incurred its first net loss for FY17 of $16.4 million since it listed. This is compared to earnings of $7.8 million in FY16.

Following the results announcement, Vesmond Wong Kok Khun, chairman and group CEO, has reviewed the strategic direction following the results announcement.

DeClout’s business is to identify disruptive trends, incubate, scale and harvest high-growth technology companies. This has led to the spin-off of Mainboard-listed Procurri Corporation, as well as the trade sale of Acclivis Technologies and Solutions.

For a company of this nature, DeClout says shareholder returns may not reflect the group's intrinsic value. Instead, return to shareholder value may be better enhanced in future “harvests”, through possible in-specie share distribution to shareholders, corporate actions, or recycling capital to incubate more portfolio companies.

In its update, DeClout says subsidiary Corous 360 will exit direct participation in the e-commerce sector after undergoing restructuring in FY17 which has largely been completed with no further significant losses from the business unit expected.

Meanwhile, the group is focused on its 75% stake in Beaqon, whose primary business includes sales and distribution of telecommunications equipment, fit-out of data centres and the implementation of electronic and physical security projects.

Beaqon has also begun offering neutral hosting services, providing flexible and reliable in-building coverage and reliable in-building coverage for all IT and telecommunications applications.

The group is also planning to expand 50.01%-owned vCargo Cloud propriety CamelONE platform via China’s Belt and Road Initiative (BRI) given vCargo Cloud’s trade facilitation expertise, footprint and relationships can form the basis of a “Digital Silk Route” and offer opportunities related to blockchain and trade financing.

As at 10.50am, shares in DeClout and Procurri are trading at 7 cents and 20 cents respectively.

US sanctions on Huawei could backfire

SINGAPORE (May 27): It was only to have been expected. After nearly a year of pressure that failed to stop Huawei Technologies Co’s expansion -- especially in the rollout of the next generation 5G wireless network globally -- in its tracks, US President Donald Trump signed an executive order effectively barring American firms from doing business with the Chinese telecommunications equipment company. The inclusion of Huawei on the US Department of Commerce’s Bureau of Industry and Security’s (BIS) Entity List means that companies would need to apply for a waiver to supply goods with 25....
Read More >>

Annica chairman Ong quits just as $33 mil goes missing at his law firm JLC

SINGAPORE (May 27): Jeffrey Ong, managing partner of law firm JLC Advisors, may have given instructions to pay out a sum of $33.2 million held in escrow by his firm for a client, Allied Technologies. According to Allied’s statement filed with Singapore Exchange on May 23, the payment may have been “unauthorised”, citing a letter it received from JLC on May 22. Allied’s statement did not specify who the payment was made to. Ong also abruptly resigned as non-executive chairman of Annica Holdings on May 20. In a May 22 filing with SGX, Annica CEO Sandra Liz Hon Ai Ling said Ong resigne....
Read More >>

SGX RegCo sees targeted approach in enforcement, more powerful market discipline

SINGAPORE (May 27): Tan Boon Gin, CEO of stock exchange regulator Singapore Exchange Regulation, says the market can expect a stronger regulatory presence. “You will see a series of enforcement cases coming up quite soon,” he tells The Edge Singapore. Tan’s assertion comes amid significant changes in the market as sentiment remains lacklustre and investors’ expectations change. The local stock market has gone through significant upheaval, not least because of the penny stock crash in 2013 that wiped out some $8 billion in value from the market. The event dented investor sentiment, a....
Read More >>