Scicom (SCICOM) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 declined 9% year-over-year to RM223.99 million, mainly due to non-renewal of long-term BPO contracts as clients brought services in-house.

• Profit before tax dropped 20.4% to RM33.38 million, with net profit down 25% to RM24.35 million compared to FY2023.

• The company is pivoting towards technology-driven BPO solutions, investing in AI and value-added services to differentiate in a competitive market.

Financial highlights

• Q4 FY2024 revenue was RM44.50 million, down 22% from Q4 FY2023; profit before tax fell 50% to RM4.39 million.

• Operating expenses for FY2024 decreased 7% to RM172.41 million; depreciation and amortisation rose slightly.

• Cash and bank balances at year-end were RM21.77 million, with net cash from operating activities at RM48.44 million.

• Four interim dividends totaling 7.25 sen per share (RM25.77 million) were paid in FY2024, with a fourth interim dividend of 1.25 sen declared for payment in September 2024.

Outlook and guidance

• Management is cautiously optimistic for FY2025, focusing on AI-driven solutions, higher-margin services, and digital transformation for clients.

• Continued marketing efforts in customer lifecycle management, digital education, and Gov-tech sectors are expected.