KUALA LUMPUR: Censof Holdings Bhd's net profit declined 78.1 per cent to RM1.78 million for the first quarter (Q1) ended June 30, 2021 from RM8.13 million net profit a year ago.
The company said this was due to the loss on fair value adjustment of RM2.05 million on short-term investment on Dagang Nexchange Bhd in contrast to an RM8.89 million gain recognised in the same quarter last year.
Quarterly revenue, however, grew 59.5 per cent to RM21.1 million from RM13.21 million in the first quarter of financial year 2020.
"The improvement was driven by strong organic growth of the financial management solutions for the government (FMS – G) and the financial management solutions for the commercial and small and medium enterprise (FMS – C & SME) divisions," it said.
The company said for the quarter, revenue from FMS – G and FMS – C & SME divisions were RM12.8 million and RM6.8 million respectively, versus RM8.3 million and RM4.3 million generated a year ago.
Correspondingly, it said the pre-tax profit of both divisions were RM3.2 million and RM2.7 million, translating to an increase of 87.3 per cent and more than 100 per cent respectively.
Group managing director Ameer Shaik Mydin said the company's core businesses remained profitable.
Ameer said Censof saw strong adoption of digitalisation and implementations of financial management solutions across the Asian regions, particularly within the government and SME sectors.
"Barring any unforeseen circumstances, we are cautiously optimistic that this current financial year will be better than the previous years' after the major re-alignment of the company's core businesses and the significant reduction in borrowings," he said.