Awantec Reports RM11.3 Million Profit Before Tax in Quarter Results
Sets Stage for Growth as an Appointed Managed Service Provider to Google Cloud under the MyDigital Blueprint and Capitalise on Opportunities in the Wider Digital Economy.
AwanBiru Technology Berhad (Awantec or the Group), today reported its current quarter results ended 31 December 2020 for financial year ending 31 June 2021 (FYE21) to Bursa Malaysia Securities Berhad.
The Group recorded a revenue of RM38.1 million for the current quarter, which was RM6.8 million higher than the corresponding quarter of RM31.3 million in previous year. This was mainly driven by higher revenue for Software & Services and Talent segment which recorded a growth of 34%.
The Group’s profit before tax (PBT) is RM11.3 million for the current reporting quarter or 424% higher than preceding year loss of RM3.5 million. This is mainly due to gain on completion of the disposal of Prestariang Education Sdn Bhd, effective as of 16 November 2020.
The Group has made substantial progress in its rationalisation plan which resulted in a strong cash position that will give the Group the resilience needed to rebuild its revenue base with new partners, product lines, and services in the coming quarters. Revenue contraction is however expected in the immediate term following exit from the Microsoft Partner Network.
The Group’s financial position was further strengthened with the completion of the private placement of shares and rights issue on 30 November 2020 which raised gross cash proceeds of RM63.22 million.
Awantec has the capability, financial reserves from the recent corporate exercise and products and services offerings, to be a key player in tapping into the vast opportunities of the digitalisation process in Malaysia. This includes providing the necessary ecosystem with latest technology working together with its global technology partners as well as offering right talents to drive digital adoption, which is aligned to the MyDigital Blueprint.
The Group’s transformation plan which started since early 2020, has successfully positioned Awantec as a leading Technology and Talent Platform Innovator providing multi-cloud management services and lifelong learning talent lifecycle services to support the digitalisation of Malaysia.
Awantec’s wholly-owned subsidiary, Prestariang Systems Sdn Bhd, was named by its partner Google Cloud as the Managed Service Provider appointed under the Government’s MyDigital Blueprint. The scope of this appointment for the group will include Infrastructure as a Service (IaaS), Platform as a Service (PaaS), Software as a Service (SaaS) and Anything as a Service (XaaS) for the next three years from 2021 to 2023. Together with Google Cloud, Awantec Group will be driving adoption of Google Cloud Products and Services, where the Government is aiming for the migration of 80% of public data into a hybrid cloud system by 2022.
Awantec has broaden its range of products and services growing from just managing software licenses into providing multiple Cloud products and related services.
In the Talent segment, the Group has also expanded its talent business from training to include job placement and upskilling and reskilling. Awantec Group has also recently secured a 3-year contract valued at approximately RM50 million from the state-owned project Menteri Besar Selangor Incorporated known as the Selangor Kerjaya Program implemented to provide skills training and job placement for 10,000 job seeking Selangorians.
The Board is of the view that the Group is in good position to capitalise on the task of meeting the market requirement for technology and talent services to spearhead its business growth following its successful transformation and rationalisation plans.