This article first appeared in The Edge Financial Daily on September 13, 2017
KUALA LUMPUR: Censof Holdings Bhd is optimistic about achieving an even better financial year for the period ending March 31, 2018 (FY18), driven by two business segments — financial management solutions (commercial division) and training solutions.
“For FY18, we will definitely see more positive [prospects], anchored by these two divisions. There have been a lot of developments in these areas lately,” Censof group managing director Ameer Shaik Mydin told reporters after the company’s annual general meeting yesterday.
In FY17, though yearly revenue slipped 11.2% to RM146.57 million from RM165.04 million, Censof returned to the black with a net profit of RM13.66 million versus a net loss of RM13.51 million in FY16, thanks to its associate and technology-based solutions provider Dagang NeXchange Bhd’s (DNeX) contribution.
Censof’s financial management solutions division is divided into two parts: government and commercial. For commercial, the group targets mainly the growing micro small and medium enterprises (SMEs), which made up about 76.2% of Malaysia’s entire SME market in 2016, according to the Statistics Department.
In March this year, Censof launched Financio, its accounting automation software targeted at micro SMEs, particularly for users with little or no accounting knowledge.
Ameer said Censof has garnered over 4,000 Financio subscribers in Malaysia, and plans to launch Financio in Singapore and Hong Kong towards year end.
As for its training solutions segment, Censof will continue to collaborate with local universities by bundling its existing technology modules with modules from selected universities to nurture skills that match current market needs in cybersecurity, big data, Internet of things and cloud computing. Having focused on Kuala Lumpur, the group has recently extended its training services nationwide.
Meanwhile, via wholly-owned subsidiary Century Software (M) Sdn Bhd which supplies and implements financial management solutions, Censof’s order book now stands at RM31.2 million, comprising mainly government projects. The group will also be supported by yearly recurring income of RM20 million from maintenance contracts.
Moving forward, Ameer said Censof “does not shy away” from expansion opportunities and does not discount the possibility of business acquisitions in future. “But for now, nothing is firm.”
Notably, Censof has been trimming its stake in DNeX, in which it now holds a 17.04% stake compared with a 45% stake in November 2013, to pare down its gearing.
Censof settled 3.51% or one sen higher at 29.5 sen, with a market value of RM145.51 million.