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Secura FY19 net profit slumps 80%, warns of loss of major contracts

SECURITY firm Secura on Tuesday said it made a net profit of S$366,000 last year, down 80 per cent from 2018.

Revenue in the 12 months ended Dec 31, 2019 was S$38.7 million, down 6 per cent from 2018.

The group cautioned that its security guarding segment will decline substantially in the next financial year as a few major contracts were not renewed. Security guarding accounted for S$26.2 million of group revenue last year.

The security guarding segment also faces industry-wide shortage of manpower and increasing cost pressure due to the rise in wages under the Progressive Wage Model, it said.

"However, we do expect an improvement in remote surveillance business. This, coupled with the outstanding orders from digital forensic business carried over from FY2019 to FY2020, should cushion the overall decline in business. Other segments such as security printing, cybersecurity and training are expected to remain stable," Secura added.

Segment profit from security guarding was S$950,000. Segment loss from cybersecurity was S$22,000 and security printing made a segment profit of S$683,000.

The group said it will continue to focus on business profitability before reaching out to new arenas.

Earnings per share was 0.09 Singapore cent in 2019, down from 0.47 cent in 2018.

No dividend was declared. In 2018, a final dividend of 0.3 cent per share was declared.

Net asset value per share was 11.29 cents as at Dec 31, 2019, down from 11.49 cents as at Dec 31, 2018.

Secura shares last traded at S$0.047 on Feb 14.