PRESTARIANG BUSINESS TRANSFORMATION SOLIDIFIES MID TO LONG TERM GROWTH PLANS
AGM concluded with reports on milestone achievements in transformation
Reports on 1QFY17 results saw revenue of RM43.9 million
Continue Declares Dividend Payout
CYBERJAYA, 22nd May 2017 - Prestariang Berhad (“Prestariang” or the Group”) today concluded its 7th Annual General Meeting reporting on the Company’s milestone achievements of its transformation (‘Prestariang 5.0’) within its financial year 2016. Prestariang 5.0 essentially identifies it to be a Platform-Based Services company aligned to 2 core business streams; Technology and Talent. The Group transformational business has strengthened its current core businesses namely Software & Services and ICT Training & Certification to drive recurring income and aligned to SKIN, UNIMY and EduCLOUD. With the impending closure of investment made in the strategic project and continuous improvement of operational efficiencies of existing businesses, the Group is expected to perform better for the financial year ending 2017.
15-year project with Sistem Kawalan Imigresen Nasional (SKIN)
Prestariang received a letter dated 15 November 2016 issued by the Government of Malaysia via the Ministry of Home Affairs to confirm that the cabinet has approved for the company to implement SKIN. A Concession Agreement is currently being finalized and the Company will make the necessary announcement once it is signed. Prestariang has also in March this year signed an agreement with its main technology partner Thales, a global leader in high technology solutions for key infrastructures, for the implementation of this project. SKIN is Prestariang’s pathway of integrating all core competencies of its service based platform businesses to drive long term recurring revenue by delivering emerging technologies such as Big Data Analytics (BDA), cloud computing and cybersecurity.
Positive changes in UNIMY
The turnaround plan of UNIMY has successfully recorded its highest intake in April 2017 with a total of 200 students. The total student population as of May 2017 is close to 400 students. There will be another major intake in August 2017 where we expect another 200 to 300 new students. The university now offers 10 accredited programs ranging from foundation, diploma and undergraduate programs, and various short certification courses in BDA, coding and cybersecurity.
Developing an education landscape game-changer
Earlier in January this year, Prestariang signed a joint-collaboration with Alibaba Cloud (China) and Conversant Solutions (Singapore) to build EduCLOUD. The parties are currently in active customer engagement to develop an implementation framework leading toward a nationwide pilot rollout in September 2017.
1QFY17 results saw revenue of RM43.9 million
The Company had also filed its 1QFY17 results to Bursa today. The Group recorded total revenue of RM43.9 million, an increase of 7.9% as compared to the previous corresponding quarter. Revenue were mainly contributed by its Software & Services business segment, primarily the Microsoft Licensing Agreement (MLA) 2.0. Prestariang's Profit After Tax (PAT) also recorded an increase of 5.9% from previous corresponding quarter at RM3.2 million. This has given rise to the Company’s Earnings Per Share (EPS) to 0.66 sen for the quarter. Prestariang Systems Sdn Bhd, a wholly owned subsidiary of Prestariang has been granted the Customised Incentive for its New MSC Malaysia activities whereby it will enjoy 30% exemption from income tax on its statutory income from the approved business for five years with effect from January 2017.
Consistent dividend payout.
The Board of Directors has also declared an interim dividend payout of 0.75 sen per share totalling RM3.6 million for the reporting quarter. The interim dividend will be paid to the Group’s eligible shareholders on 21 June 2017 with the ex-entitlement date on 5 June 2017. A total dividend of 25.15 sen per share amounting to RM121.6 million has been declared by the Group since its listing in July 2011.