Procurri expects loss in FY17; announces long-term strategies to return to profitability

Procurri expects loss in FY17; announces long-term strategies to return to profitability

By: 
Samantha Chiew
30/01/18, 07:23 am

SINGAPORE (Jan 30): Procurri Corporation, the IT services and hardware equipment provider, expects to report a net loss for 4Q17 and FY17, according to its preliminary assessment of the unaudited financial results.

This is mainly due to foreign exchange differences and write-offs arising from the group’s prudent approach towards stock obsolescence and bad debts.

The group will disclose further details when it releases its unaudited financial results before Feb 28.

However, the group expects that in the longer term, its four “go forward strategies” will help transform it into a stronger global player that can capture a meaningful market share of the highly fragmented US$42 billion ($$54.9 billion) secondary IT equipment market.

The group’s four strategies are: cementing its credibility as an approved channel for genuine hardware in the used IT equipment market; targeting to grow the higher margin maintenance business to contribute 50% of its total gross profit; expanding markets and enlarging customer base; and improving internal efficiencies through cost controls and harnessing economies of scale.

Hence, subject to further business growth, the group aims to reduce the increase in administrative expenses in FY18 with continued cost control and future increments being commensurate with business needs.

For FY18, the group also aims to improve its lifecycle services’ gross profit margin and return itself to profitability.

In the next five years, the group aims to increase the contribution of the higher margin Lifecycle Services business segment to 50% of group gross profit.

It also intends to make further inroads to the broader data centre equipment market by securing more authorised partnerships with Original Equipment Manufacturers (OEM).

Shares in Procurri last traded at 22 cents on Monday.

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