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Addvalue reveals S$123m valuation in response to shareholder queries
RESPONDING to shareholders' concerns, Addvalue Technologies shared in a general announcement on Wednesday that its business has been valued at about S$123 million as of May 31, 2017.
The company had engaged intangible asset specialist EverEdge Global (NZ) in 2017 to review its intellectual property (IP) assets. As the valuation "was only intended for management internal reference and not for any other purpose", it was not previously shared with shareholders or the investing public, said Addvalue.
Addvalue said that, having received two enquiries from shareholders on Oct 12 about the value of its IP assets, it "is of the view thatit would be good to provide the shareholders of the company and the investing public at large additional information and clarification on the intangible assets of the group".
It noted that the "intrinsic value and worth" of its staff and IP assets are not accounted for in its books and hence not reflected in its financial position and performance.
With regard to its Inter-Satellite Data Relay System (IDRS) business, Addvalue said the growth potential of that market "is tremendous" and has outgrown the expectations assumed in deriving the earlier valuation. It expects "a few more IDRS contracts to be signed" in the remaining period of the financial year ending Mar 31, 2019, and "expects the forged partnerships to help accelerate the growth of its IDRS business in FY2019 and beyond".