NEXT-GEN POSTS $16.9 MILLION NET PROFIT IN FY2011
– New telecommunications-related business contributes $7.5 million to revenue
and $0.8 million to net profit
– Profit from textile business disposal amounts to $16.1 million
SINGAPORE, 31 May 2011
(“Next-Gen” or the “Group”) reported a significantly improved set of results for the financial year ended 31 March 2011 (“FY2011”). The Group has successfully transformed its traditional textile trading business to fully engage in telecommunications-related sales and services in FY2011. The new business contributed $7.5 million to Group revenue, and a gross profit of $5.9 million.
Mr. Hady Hartanto, Executive Deputy Chairman of Next-Gen said, “We are pleased to see that our telecommunications-related business is developing on track as seen in the revenue contribution it made in the full year of FY2011. This has proven that we have made a timely decision to move away from the harsh operating environment of the textile industry to the more vibrant telecommunication market.”
Next-Gen’s foray into the telecommunication business was realised through the acquisition of Multi Skies Nusantra Limited and its subsidiaries (“MSN”). Following the consolidation of financial statements of MSN, the net assets of the Group was greatly enhanced by $19.4 million as compared to the previous corresponding year (“FY2010”). The Group had paid up US$4.8 million of the total consideration of MSN; the remaining US$17.0 million was to be paid progressively to the vendor, Bright Reach International Limited (“Bright Reach”), upon them satisfying the conditions laid out in the conditional sale and purchase agreement. However, the Group had entered into a deed of variation with Bright Reach whereby Next-Gen has the option to pay US$14.0 million for the remaining consideration of US$17.0 million upon the satisfaction of the conditions.
The Group’s Administrative Expenses were $5.2 million in FY2011, compared to the $3.0million recorded in FY2010. The increase was partly due to performance shares paid to the directors and employees. However, foreign exchange losses were significantly narrowed to $0.5 million compared to the loss of $2.4 million recorded in FY2010; this was attributable to the active measures taken by the Group in managing its foreign exchange exposure. In addition, the Group managed to book a gain of $16.1 million from the disposal of its textile business and as a result, the Group’s net profit increased to $16.9 million versus $0.4 million in the previous year.
Looking ahead, the Group’s Universal Service Obligation (“USO”) business in Indonesia is expected to provide a steady stream of income for the Group. In addition, the Group has also embarked on acquisition of businesses in Indonesia and China to tap on the growth potential of these markets.
“In anticipating the region’s rising demand for telecommunication and satellite communication services, we will continue to strengthen our foothold and look out for viable opportunities to grow our business in the region,” said Mr. Hartanto.
The Group had previously announced in December 2010 that Singapore Exchange Securities Trading Limited had extended the timeline for the Group to meet the requirements to exit the Watch-List to
June 2012.
About Next-Generation Satellite Communications
Next-Generation Satellite Communications is a satellite communication solutions provider currently
engaged in the business of building, operating and leasing base station controllers for universal service
obligation (USO) sites to enable the roll out of telecommunication services in remote areas in Indonesia.
The company’s vision is to become a leading infrastructure service provider in Asia. Towards that end, it
is exploring opportunities to invest in other satellite communication infrastructure in the region, including
in the submarine cable business.
– Next-Generation Satellite Communications Limited
