Procurri ended 2018 with its second-highest annual net profit

Financial Markets

Procurri ended 2018 with its second-highest annual net profit since its inception as global demand for IT lifecycle services
and data centre equipment drove its revenue and pre-tax earnings to all-time highs. The Group made a net profit of S$5.3 million in the 12 months ended 31 December 2018, reversing from a loss of S$2.7 million in the previous year (“FY2017”).

Fully diluted earnings per share amounted to 1.89 Singapore cent. Revenue for FY2018 rose 21.1% to S$220.2 million, crossing the S$200 million mark for the first time. The Lifecycle Services business grew 57.7% to S$65.4 million, while the IT
Distribution business contributed S$154.8 million in revenue, up 10.3% from FY2017.

With growth in overall revenue outpacing an increase in cost of sales, the Group delivered a record gross profit of S$80.5 million, of which nearly half came from the Lifecycle Services business. Overall gross profit margin rose to 36.6% from 32.4% as the Group scales up its in-house maintenance capabilities.

The improvement in revenue and gross profit margin offset higher selling and administrative expenses, giving rise to a record pre-tax profit of S$10.1 million in FY2018 compared with a pre-tax loss of S$2.3 million in FY2017.

Sean Murphy, the Group’s Chairman and Global CEO, said: “Our 2018 revenue and profit before tax performance are the best in the history of Procurri. We delivered four consecutive quarters of increasing net profit, driven by our growth in our higher-margin Lifecycle Services business, and tightened our grip on administrative expenses.”

“Increasing cloud adoption, in disrupting the traditional data centre industry and changing the way businesses consume technology, is beneficial to us and remains a key catalyst in driving the Group’s continued growth. As a leading global aggregator of IT services and enterprise data centre equipment, we expect to attract more of the global 2000 companies. Besides fuelling our growth, this strategic shift in the global IT industry will ultimately also enhance value for all shareholders of Procurri.”

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