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IPS Securex halves its Q4 net loss

CATALIST-LISTED security company IPS Securex Holdings managed to narrow its losses in the fourth quarter, as revenue surged on rising demand for integrated security solutions in Singapore.

The group halved its losses to S$1.37 million in the three months to June 30, according to unaudited financial results released on Tuesday - down from a net loss of S$2.79 million in the same period the year before.

Revenue jumped by 76.6 per cent year on year to S$3.67 million, with increases in both the security solutions business and maintenance and leasing operations.

The hit to the bottom line came from the hefty cost of sales, which IPS Securex attributed to an increase in direct material costs incurred, as well as how the bulk of its business in integrated security solutions came with a higher cost base, relative to revenue.

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The group posted a loss per share of 0.28 Singapore cent, against 0.57 Singapore cent previously. Net asset value was 1.6 Singapore cents a share, compared with 1.9 Singapore cents the year before.

For the full year, IPS Securex reported a net loss of S$1.29 million, narrowing from S$2.5 million the previous year, while revenue slipped by 6 per cent to S$10.9 million.

"The threat of terrorism continues to be on the agenda of governments in the region and globally," the group noted in its outlook statement.

It added: "The group will adopt a more prudent approach towards credit risk management and will continue to monitor its debtors ageing and collections closely.

"At the same time, the group will take advantage of opportunities that will allow it to expand its range of security products and integrated security solutions so as to cater to the needs of current and future customers whilst maintaining its efforts in cost management."

No dividend has been declared or recommended.