Download Boardroom posts 79% gain on 3Q revenue as net profit hits $1.2m

FOR IMMEDIATE RELEASE
Boardroom posts 79% gain on 3Q revenue as
net profit hits $1.2m
Financial Highlights
3 months ended 31 March 2006
9 months 1 Jul 2005 – 31 March 2006
Jan-Mar 06
Jan-Mar 05
% Change
Jul 05-Mar
06
Jul 04-Mar
05
% Change
Revenue (S$’000)
7,161
4,006
+ 78.8
21,848
12,410
+ 76.1
Gross Profit (S$’000)
1,653
1,214
+ 36.2
6,810
3,427
+ 98.7
Net Profit after tax
(S$’000)
1,213
923
+ 31.4
5,412
2,609
+ 107.4
SINGAPORE – 5 May 2006 – Mainboard-listed Boardroom Limited, Singapore’s largest
provider of corporate secretarial, share registration, accounting and payroll services, today
reported net profit of $1.2 million representing a growth of 31.4%, on a near 79% increase
in revenues to $7.2 million for the third quarter ended 31 March 2006.
Net profit would have been better if not for the strengthening of the Singapore dollar
against the Hong Kong dollar which caused a foreign currency loss of $599,000 in the third
quarter, S$686,000 for the year to date.
Revenue from Corporate Secretarial and Accountancy increased by 133.8% and 44.6% in
the third quarter and 124.8% and 40.0% for the nine months to date in FY2006 due to an
increased number of clients and their level of corporate activities in each of the geographic
locations that Boardroom now operates. Similarly, for 3Q06 and FY2006 to date, revenue
for the Share Registration business increased by 3.1% and 13.4%, to S$0.67 million and
S$2.3 million respectively.
On aggregate, the Group’s total revenue for the year to date amounted to S$21.9 million,
up 76.1% from the S$12.4 million reported a year ago. The same period showed net profit
rising 107.4% to S$5.4 million.
Much of the growth across all of the businesses was generated from the first-time full year
inclusion of Boardroom’s Malaysian and Hong Kong subsidiaries which were acquired in
May 2005, but there was also an encouraging contribution in terms of organic growth from
the Singapore businesses as corporate activity increased during the period in review.
For the period in review, earnings per share on a fully diluted basis increased from 1.81
Singapore cents in 3Q 2005 to 3.00 cents in 3Q 2006, an increase of 65.7%.
Commenting on the Group’s performance for the year so far, Mr Thomas Yeoh, CEO and
Managing Director, said, “The Group’s results are in line with our expectations and we are
pleased that the smooth integration of our subsidiaries in Hong Kong and Malaysia have
provided immediate positive results.”
The outlook for the Hong Kong and Singapore businesses remains positive with an
increased amount of corporate activity expected, especially in the active IPO market.
However, the Management of Boardroom is more cautious of the prospects for its
Malaysia subsidiary – although it is profitable and contributes positively to the Group’s
earnings, its performance has not been up to expectations.
Mr Yeoh added, “While increased business costs and competitive pressures in the
Singapore market are likely to continue, going forward the Group is expected to maintain
its strong performance for the remainder of FY2006. However, should the Singapore
dollar strengthen further and corporate activity in Malaysia remains slow, it will have an
adverse effect on the Group’s results as will keen competition and pricing pressures from
higher staff and office rental costs in the region.”
The Group recently announced that it is disposing of its’ 35% equity interest in associate
Talent Shanghai Inc Ltd. This transaction is expected to be completed in May 2006 and
will result in a one-off exceptional gain of S$1.5 million in the fourth quarter of 2006.
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Boardroom Limited post 79% revenue gain in 3Q 2006 Results
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About Boardroom Limited
Listed on the Main board of the Singapore Exchange Securities Trading Limited (SGX-ST),
Boardroom Limited is one of Asia's leading business service providers. Headquartered in
Singapore, it is also established in Hong Kong, Malaysia. Riding on the global outsourcing
trend, Boardroom Limited provides corporate secretarial, accounting, payroll, and share
registration services to over 4,000 clients in Asia. Our clients include Fortune 500
multinational companies and come from a wide range of industries.
The market leader in Singapore in the corporate secretarial and share registration
business segments, Boardroom’s impressive record of successful IPOs include Singapore
Telecommunications Limited, Capitaland Limited and Singapore Exchange Limited. Its
current portfolio of clients includes SMRT Corporation Limited, United Overseas Bank
Limited and Raffles Holdings Limited.
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For more information, please contact:
Graham Owens
August Consulting
E-mail : [email protected]
Tel: 6733 8873
Fax: 6733 9913
Boardroom Limited post 79% revenue gain in 3Q 2006 Results
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