Friday, December 12, 2014

Censof/DNEX ... GST Div Sales Spike + Stable Income !!

DNEX has contributed to the group revenue and the earnings of the parent company, after its account was consolidated with Censof’s from the quarter ended Dec 31 2013.

Sales grew by 10.75% and 5.19% quarter on quarter to rm20.59 million and rm21.66 million for the first two quarters of the current financial year ended June 30 and Sept 30 2014.

However Censof slipped into the red in 2QFY2015 with a net loss of rm534000 from a net profit of rm1.13 million in the previous corresponding quarter because of the high cost of funding to acquire DNEX and a weaker performance by the financial management solutions division.

DNEX’s jewel in the crown is the trade facilitation system operated by its 71.25% owned subsidiary Dagang Net Technologies Sdn Bhd. The latter was awarded a five year contract by the government in 2009 to implement NSW. The contract has been extended for two years to Sept 24 2016.

The portal offers a platform to users like exporters and importers so they may close their goods and pay duties electronically, to permit issuing agencies.

DNEX’s contribution will continue to be substantial. It will generates about rm80 million in revenue every year and rm15 to rm20 million in net profit. This unit serves as safety net for Censof while its other ventures bear fruit.

DNEX has also proposed in June 2014 to acquire Petronas licensed oil and gas services supplier OGPC Group for rm203 million.

Then Censof announced a partnership with ABSS to tap into GST ready software for SMEs enterprises. The tie up with them is to take advantage of government funding for SMEs to be GST compliant.

Its in house GST compliant software generally distributed to government agencies, expects a sales spike in the GST segment as the implementation deadline approaches.

As of Dec 2014, it has rm1 million in its orderbook for the GST software systems alone, from its existing clients. Most of its agencies are equipped with the system and what they need now (Dec 2014) is to upgrade it. The fee could range from rm100000 to rm500000 depending on the size of the organization.

Censof serves 80 government agencies but only four are upgrading their systems.

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