News Column

RapidCloud Confident For Growth In 2014 As Profit Hit By IPO Costs

May 29, 2014

Hana Stewart-Smith

LONDON (Alliance News) - RapidCloud International PLC Thursday expressed confidence for further strong growth in 2014 underpinned by its growing pipeline, although its pretax profit for 2013 was hit by the costs of its initial public offering on AIM last August.

The Southeast Asia-based cloud computing company proposed a final dividend of MYR6.5 million, equivalent to around GBP0.006 per share.

RapidCloud posted a pretax profit of MYR3.2 million, down from MYR3.8 million, despite seeing revenue rise to MYR11.3 million from MYR9.4 million, hit by higher administrative expenses and MYR1.8 million in costs relating to its AIM listing.

It said it had made progress against the strategic objectives it outlined at its initial public offering, including investments in research and development and launching new products.

The company said its expansion into Indonesia was a key target during the year, as it formed a subsidiary in the region, PT RapidCloud Indonesia. The establishment of the subsidiary took longer than expected, it said, due to extensive regulatory procedures. The subsidiary is expected to begin contributing to revenues in the second half of 2014.

Outside of Indonesia, RapidCloud plans to expand into Singapore in the second half of 2014, and has established new headquarters in Kuala Lumpur following its IPO.

RapidCloud also bolstered its sales force during the year, adding 22 new sales staff in Malaysia and other territories, and appointing a country sales manager, a head of sales and a new general manager.

The company said it plans to continue expanding into new territories, whilst simultaneously looking for acquisitions.

Shares in RapidCloud were trading down 3.4% at 71.00 pence Thursday.

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Source: Alliance News

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