Datapulse posts net profit of S$34.48m in FY2018, mostly due to gains from disposal of property

DATAPULSE Technology, a former media storage business now diversifying into haircare, announced a net profit of S$34.48 million for the full year ended July 31, 2018, up significantly from S$3.03 million a year ago.

This surge was largely thanks to the S$44.55 million gain recognised from the disposal of its leasehold property, which gave a boost to the group's other income.

Revenue for the year stood at S$716,000, generated by its subsidiary Wayco Manufacturing (M) which is in the haircare business.

Earnings per share was 15.74 Singapore cents, up from 1.38 Singapore cents previously. A dividend of one Singapore cent per share was declared compared to 0.50 Singapore cent in FY2017.

The group ceased to be engaged in the media storage business during the financial year ended July 31, 2018.

As such, the results from the media storage business have been presented as discontinued operations, with comparatives re-presented as if the operation had been discontinued from the start of the immediately preceding year.

Loss of S$6.24 million from discontinued operations for FY2018 was attributed to the media storage business, while the profit of S$3.51 million from discontinued operations for FY2017 was mainly due to the gain of S$5.6 million on disposal of subsidiary One Global Inc.

In its outlook, the group said that even as it is currently engaged in the haircare business, through Wayco Manufacturing (M) which it acquired on 15 December 2017, it is looking to pursue other core businesses, including property and investment businesses.

The group said that it is currently studying the Ernst and Young's financial and tax due diligence report on Wayco together with the results of the statutory audit of Wayco for the financial year ended July 31, 2018 and the internal report completed by management.

It is reviewing its option in relation to the acquisition and the company has up to Dec 14, 2018 to decide whether to exercise the buyback undertaking to require the vendor of Wayco to buy back Wayco from the company. The company is already in consultation with its advisers to engage the vendor of Wayco and an update will be provided to shareholders shortly.