IPS Securex full year profit down 35.2% to $1.11 million

SINGAPORE - Newly-listed security products and integrated security solutions provider IPS Securex has reported a drop in its first set of earnings.

It announced on Thursday that net profit for the financial year ended June 30 came in at $1.11 million, a 35.2 per cent decline compared with the same period a year ago.

Earnings fell despite revenue jumping 31.2 per cent for the year to $12.4 million.

A spike in administrative costs dragged down profits. Such expenses more than doubled to $4.69 million, due to one-off expenses from the company's initial public offering and restructuring exercise.

Excluding the one-time charges, the company said it would have recorded a net profit of some $2.4 million, a 41 per cent increase from the previous financial year.

IPS chief executive Kelvin Lim said in a statement: "We have registered significant growth in our revenue and gross profit for both our security solutions and maintenance and leasing businesses."

The company is positive about its outlook for the current financial year.

It expects demand for its products and services to rise on the back of the resilient economic outlook and likely increase in government budget allocations for security and defence spending in Southeast Asia.

IPS made its debut on the Catalist board on June 30. It was trading at 46 cents, up a cent, at 10.35am on Thursday.