INFORMATION Technology (IT) software and platform provider ARB Bhd (previously Aturmaju Resources Bhd) has posted a four-fold jump in its net profit to RM33.6 mil for its 3Q FY2021 ended Sept 30, 2021 from RM8.4 mil in the corresponding period last year.
Meanwhile, the company’s revenue stood at RM77.3 mil which is 32.6% higher than the RM58.3 mil recorded in the same period of 2020.
A filing with Bursa Malaysia today shows that the sharp improvement in earnings was mainly due to revenue growth in its enterprise resource planning (ERP) division. Moreover, the negative goodwill of RM21.2 mil which arose from the acquisition of a subsidiary also contributed to the stellar results.
“I’m confident that the group will be able to maintain the growth momentum, anchored by our IT segments,” commented ARB’s executive director Datuk Seri Larry Liew Kok Leong. “The group has taken advantage of its strong cash position to acquire the potential businesses that are able to contribute significantly to the group’s earnings.”
For its 9M FY2021, revenue and net profit stood at RM173.6 mil and RM56.7 mil, an increase of 18.1% and 139.2% from RM147.0 mil and RM23.7 mil registered in the corresponding period last year.
The higher revenue was mainly due to increased contributions from the ERP business segment of RM120.3 mil as compared to RM80.7 mil recorded in 9M FY2021.
“I think the global healthcare crisis has created an unprecedented opportunity for us as the valuation of companies and assets have come down from its peak prior to the pandemic. We have benefitted from the strong cash position that enables us to obtain a bargain acquisition,” opined Liew.
“We are convinced that the companies that we acquired will recover strongly going forward as the global vaccination roll-out continues and the world adjusts to the new normal. This will help to drive growth forward.”
According to Liew, the group’s ERP and internet of things (IoT) business segments will continue to drive alignment, focus and growth of the group as well as improve the efficiency of its partners.
“The group will continue to scout for cross-selling opportunities through its existing business networking,” he pointed out.
“We intend to participate in these high-growth new business opportunities in Malaysia by offering our cloud solutions to prospective customers. We will continue focus on executing and implementing the business strategies to ensure the company remains at the right track to deliver balanced growth and creating value to the shareholders.”
At 4.03pm, ARB was up 3 sen or 18.18% to 19.5 sen with 76.42 million shares traded, thus valuing the company at RM119 mil. – Nov 16, 2021
