Record profit for ECS in fourth quarter

PETALING JAYA: ECS ICT Bhd, which distributes information and communication technology (ICT) products and software, posted record net profit of Rm10.5mil in the fourth quarter ended Dec 31, 2011.

This represented an increase of 25.4% compared with Rm8.3mil a year ago.

The net profit was achieved on the back of higher revenue, which rose 8.3% year-on-year to Rm341.8mil from Rm315.5mil, the company said in a statement.

“Both net profit and revenue for the quarter were the highest ever recorded since the company’s listing in April 2010,” it added.

The better performance was attributed to higher sales from its enterprise systems segment, boosted by improved sales in network and communication products, servers and software, ECS said.

Lower interest also enhanced profitability, it added.

For the financial year ended Dec 31, 2011 (FY11), ECS achieved a 4.2% higher net profit of Rm30.1mil versus Rm28.9mil previously. Group revenue was at Rm1.25bil against Rm1.27bil a year ago.

In FY11, enterprise systems

Both net profit and revenue for the quarter were the highest ever recorded since the company’s listing in April 2010. — ECS ICT BHD

segment revenue grew 88.6%6% yearon-year to Rm439.4mil, constituting 35.1% of group revenue. The segment’s pre-tax profit contributed Rm18.6mil, or 45.4%, due to higher margins.

At the same time, the ICT distribution segment – the group’s largest revenue generator – contributed Rm797.5mil or 63.8% of revenue, and Rm20.4mil or 49.8% of pre-tax profit.

However, this was lower than FY10 revenue of Rm855.3mil and pre-tax profit of Rm24.3mil due to slower sales in personal computers and notebooks.

Earnings per share stood at 25.1 sen in FY11 compared with 24.1 sen previously.

ECS has recommended first and final tax-exempt dividend of 8 sen per share for FY11.

The dividend payout represents Rm9.6mil or 32% of net profit, which was above ECS’ dividend policy of paying 30% of net profit to shareholders.