SINGAPORE - Azeus Systems Holdings said its net profit fell by 40 per cent to HK$18.6 million (S$3 million).
This was despite sales rising by 46 per cent to HK$170 million for the year ended March 31.
The discrepancy was due to a compensation award received for an arbitration case in the previous financial year of HK$40.9 million.
Excluding the one-off arbitration award and its related legal cost recorded last year, the group would have reported a 104.3 per cent jump in its net profit.
IT services segment remained the largest revenue contributor, accounting for about two-thirds of total revenue or HK$112.4 million.
Revenue from this segment jumped 93.2 per cent as there was more contracts secured and implemented in the year in Hong Kong and Britain.
In addition, the group recorded third party hardware and software sales of HK$43 million, compared to HK$200,000 in the previous year.
Maintenance and support services saw a 1.7 per cent fall in revenue to HK$44.6 million.
Due to lower outsourced income, the business process outsourcing segment registered a 1.8 per cent drop in revenue to HK$12.9 million.
Earnings per share slipped to 6.21 HK cents from 10.38 HK cents previously while net asset value per share eased to 40.3 HK cents from 43.96 HK cents.
A first and final dividend of 6.21 HK cents was proposed, down from 10.38 HK cents last year.
Going forward, Azeus said it will continue to deliver high value complex IT systems to the Hong Kong public sector.
At the same time, it will step up its marketing efforts to grow its customer base for intellectual assets in cloud technology.