GSTechnologies Ltd (LON:GST) today released interim results showing a 1.11% increase in revenue whilst the company described a period with “increasing market complexity”.
Revenue for the period amounted to US$2.59mln and operating income totalled US$2.59mln, up from US$2.32mln. Net cash from operating activities were positive, at US$20,000.
It reported a US$470,000 loss for the period, and, ended September with US$398,000 of cash and equivalents.
“GST's financial performance in the period reflected the increasing market complexity both our global and local clients operate in, particularly in a time of uncertainty with global trade wars, political upheavals, and unprecedented environmental issue,” the company said in a statement.
“Against this background and at a time when Singapore's economy slowed with GDP growth for first three quarters of 2019 falling to 0.5% from 3.2% in 2018, I am pleased that we still maintained comparable revenues to the same period in 2018.
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“Our ongoing and new ICT / security businesses continued to deliver healthy performance, in particular through recurring business with key corporate clients, maintaining stability and long-term value to the group.”
It added: “In the current year, the ICT / IDC industry demonstrated strong signs of growth in the emerging East Asian countries of Thailand, Cambodia, Vietnam and Myanmar with strong economic expansion forecast.
“This was true of Thailand, in particular, where our joint-venture partnership with a local Blue-Chip Thai Publicly Listed Conglomerate is expected to start early next year focused on our data centre business model, targeting corporate clients and government sectors locally, together with other regional clients.”
GSTechnologies forecasts sales of US$2mln to US$2.5mln for the second half, which ends 31 March 2020, with overall sales expected at US$4.5mln to US$5mln.
In terms of forward looking commentary, the company said: “the board strongly believes FY2020 to hold greater opportunities in both South East Asia and in Post-Brexit Great Britain for the group.”