IPS Securex Q4 net loss narrows to S$0.61m from S$1.37m previously

CATALIST-LISTED IPS Securex Holdings saw its fourth-quarter net loss narrow to S$608,339 for the three months ended June 30, less than half the S$1.37 million loss in the year-ago period.

This was despite revenue falling 36.2 per cent to S$2.34 million from S$3.67 million in the year-ago period.

Revenue fell for both major business segments - security solutions, and maintenance and leasing. Security solutions revenue fell by S$1.2 million or 57.1 per cent. This comprised a S$1 million decrease in demand for integrated security solutions in Singapore, and a S$202,000 decrease in sales of security products in Singapore and the rest of South-east Asia.

Maintenance and leasing revenue was down 7.4 per cent or S$119,000. This was largely due to a delay in commencement of a maintenance contract due to unforeseen circumstances, said IPS Securex on Wednesday.

Other operating expenses decreased by S$1.3 million or 81.4 per cent, due mainly to a decrease in allowance for doubtful debts.

"Political and economic challenges continue to persist in those countries where the group derives its revenues from," said IPS Securex, adding that in some countries, political unrest has been linked to governmental change. "These have caused delays in the procurement process of the various governments, and in turn have contributed to the decline in turnover and the losses of the group."

Loss per share for the quarter was 0.13 Singapore cent, compared with 0.28 cent for the year-ago period. No dividend was declared.

With the latest quarter's figures, full-year loss narrowed 6.1 per cent to S$1.21 million from S$1.29 million a year ago. Revenue for the year was down 17.4 per cent at S$8.98 million from S$10.87 million a year ago.

IPS Securex shares closed unchanged on Wednesday at 4.1 Singapore cents before the results release.