IPS Securex to provide additional services worth S$8.4m to existing customer

IPS Securex Holdings on Thursday said its existing client - an unnamed government agency in South-east Asia - has exercised an option worth S$8.4 million relating to a S$19.1 million contract secured in January 2019.

Under the option, the group's wholly-owned subsidiary IPS Securex Pte Ltd will supply, deliver, install, commission and test certain integrated security solutions (System B).

It will also provide maintenance support services for seven years after System B is implemented, and other System B support and professional services.

System B is to be completed within 12 months of an variation agreement received on Jan 9 and acknowledged by IPS Securex.

The group added that the completion, testing and commissioning of System B are expected to be in the financial year ending June 30, 2021. Thus, the variation agreement is not expected to have a material financial effect on the group's earnings per share and net asset value for fiscal 2020.

The counter closed at S$0.04 on Thursday, down 0.4 Singapore cent or 9.1 per cent.