(0034) Ingenuity set to post first full-year profit since 2006

Ingenuity Solutions is expecting a net profit of RM12.5 million in the current financial year ending March 31 2013, says its executive director


KUALA LUMPUR: Ingenuity Solutions Bhd is poised to post its first full-year profit since 2006 in the current financial year, said its executive director Low Gah Luen.

"We are expecting a net profit of RM12.5 million in the current financial year ending March 31 2013," Low told Business Times in an interview at Balai Berita here yesterday.

A RM12.5 million profit would translate into a record profit for Ingenuity Solutions as even at its peak in 2004, the company had registered a net profit of RM4.67 million.

"The profit forecast is based on our own internal target.

We are fairly optimistic of achieving the target," Low said.
The company yesterday told the stock exhange that it had registered its first quarterly profit in more than 20 quarters.

For the first quarter ended June 30 2012, Ingenuity Solutions registered a pre-tax profit of RM3.69 million versus a pre-tax loss of RM355,000 in the same period a year ago.

Interestingly, revenue for the quarter under review increased by as much as 46 times to RM129.84 million from RM2.82 million in the same period a year ago.

He explained that the revenue rise was because the company had acquired Vistavision Resources Sdn Bhd in the final quarter of its last financial year.

"We are targeting a full year revenue of RM800 million in the current financial year," said Low, adding that the company now has two core businesses, namely the ICT distribution business and the enterprise systems business.

He also pointed out that Ingenuity Solutions has been expanding into the telecommunications business since April this year.

"The margins are a bit higher in the telco business, where its between five per cent and seven per cent as opposed to the ICT business where the margins are below four per cent," said Low.

According to him, Ingenuity Solutions has already started distributing hardware goods from U Mobile and PI to telco dealers.

"We are working on a couple of more telco deals, but I am not at liberty to disclose them at this point of time," said Low.


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