- RM1.35 billion revenue and RM25.01 million profit after tax highest in Group’s history
- Better gross profit margins from improved sales mix
Kuala Lumpur, 12 April 2010 – ECS ICT Berhad (“ECSB”, “佳杰科技”), a leading Information & Communications Technology (“ICT”) distribution hub in Malaysia, today announced a record-breaking set of financial results for the financial year ended 31 December 2009 (“FY2009”), with group revenue growing 16.0% to RM1.35 billion and profit after tax up 26.3% to RM25.01 million.
The Group’s commendable revenue growth was driven by increased contributions from both enterprise system segment, which grew 34.3% to RM388.4 million, and volume ICT products segment, which grew 10.8% to RM937.9 million.
The faster growth in enterpise system segment also resulted in the Group achieving higher gross profit margin for the year. Gross profit margin was 5.3% for FY2009, compared with 5.0% previously; as a result, the Group’s profit after tax grew at a higher rate than the revenue.
“We are very pleased with last year’s results; despite the slowdown for ICT industry in 2009 due to the tough economic environment, we managed to grow at double digit rate in revenue. This is a clear indication that ECS is winning more market share.
More importantly, our profit margins continue to improve, due largely to better sales mix as a result of more higher margin enterprise systems sold during the year.
Moving forward, we aim to maintain this momentum of growth by securing more brands, recruiting more resellers and enhancing the efficiency of our distribution infrastructure.
Mr. Foo Sen Chin (“胡善正”)
Managing Director, ECS ICT Berhad
Earnings per share increased to 24.11 sen in FY2010, versus 20.85 sen in FY2009, based on the share capital of 120 million shares of par value of RM0.50.
Page 2 of 2 In view of the outstanding results, ECS has recommended for shareholders’ approval a final tax-exempt dividend of 4.0 sen per share in respect of FY2010. Together with the interim dividend of 4.0 sen per share paid in 2010, the Group’s total dividend payout for FY2010 would amount to 8.0 sen per share, or RM9.6 million, which constituted 33% of group net profits.
ECS has a dividend policy of 30% payout from net profit.
| Financial Summary (Audited Group Results) | |||
| RM’000 | Year Ended 31 Dec 09 | Year Ended 31 Dec 08 | Change (%) |
| Revenue | 1,345,613 | 1,159,534 | 16 |
| Gross Profit | 71,501 | 58,623 | 22.0 |
| Operating Profit | 36,122 | 31,013 | 16.5 |
| Profit Before Tax | 33,517 | 27,106 | 23.7 |
| Profit After Tax | 25,014 | 19,800 | 26.3 |
ECSB is scheduled to list on the Main Market of Bursa Malaysia Securities Berhad on 15 April 2010. ECSB’s Initial Public Offering (“IPO”) entailed a public issue of 27.0 million new shares and an offer-for-sale of up to 20.0 million vendor shares, raising RM39.5 million for ECSB and up to RM29.2 million for the vendors.
ECSB’ public tranche of 10.0 million shares for the IPO received overwhelming response with 6.9x oversubscription from public investors.
ABOUT ECS ICT BERHAD
ECS ICT Berhad (“ECSB”), an MSC-status company, and its group of subsidiaries started in 1985 with the establishment of ECS KU Sdn Bhd. Today the Group is a leading distribution hub for Information & Communications Technology (“ICT”) products in Malaysia via ECS ASTAR Sdn Bhd and ECS PERICOMP Sdn Bhd.
ECSB distributes a comprehensive range of ICT products under two categories – (1) ICT products comprising notebooks, desktop computers, printers and software; and (2) Enterprise Systems comprising network and communication infrastructure, servers, and enterprise software.
ECSB’s products are sourced from more than 30 global principals, including Hewlett Packard, IBM, Cisco, Microsoft, Apple, Sun Microsystems, Epson, Samsung, Buffalo, Adobe, Juniper, Blue Coat, Oracle, VMWare and Google.
ECSB’s nationwide distribution network spans over 2,500 resellers comprising retailers, system integrators and corporate dealers. ECSB also provides value-added product support and technical services.
Issued for and on behalf of ECS ICT BERHAD by Aquilas Advisory (Malaysia) Sdn Bhd.
For media enquiries, please contact:
Ms. Julia PONG
julia@aquilas.com.my
Tel: +603 2711 1391 / +6012-390 9258
