Microlink gets RM56.45 mil contract from Bank Islam Brunei

TheEdge Fri, Apr 26, 2024 04:17pm - 1 month View Original

KUALA LUMPUR (April 26): Software company Microlink Solutions Bhd said on Friday that it has secured a contract worth RM56.45 million to implement and maintain a new core banking system for Bank Islam Brunei Darussalam Bhd.

Microlink’s unit Microlink System Sdn Bhd signed three agreements for software supply, service and maintenance for the project, the company said in an exchange filing. The project is expected to be implemented in one year, beginning April 24, 2024, Microlink said.

The project, which also comes with five years of maintenance and support, will contribute to revenue, earnings per share and net assets per share for the financial year ending March 31, 2025 (FY2025), Microlink added. 

Last month, Microlink received an unusual market activity query from Bursa after its shares hit a limit down. In response, the RM316 million company said it is not aware of any corporate development relating to the group’s business that has not been previously announced.

Shares of Microlink had fallen 67% so far this year, bucking slight gains of its peers, amid sharp decline in earnings at the company which is backed by the Sultan of Pahang. Bursa Malaysia Technology Index, which tracks 48 stocks in the sector, is up 1.6%.

Microlink is 9.9%-owned by Al-Sultan Abdullah Sultan Ahmad Shah. He is the largest shareholder after Omesti Bhd, which has 34.3%, and Kenanga Islamic Absolute Return Fund with a 22.1% stake.

The company reported a RM3.37 million net loss for the third quarter ended Dec 31, 2023 (3QFY2024), its first quarterly loss in four years, according to the latest available filing.

Quarterly revenue shrank to RM69.58 million, from RM73.17 million a year ago, mainly attributable to lower order fulfilments and progress billings, particularly in financial services and enterprise solutions segments.

For the first nine months of the year (9MFY2024), the group saw its net profit decline 98% to RM467,000 year-on-year from RM21.5 million, despite revenue growing 12% to RM204.05 million from RM183.03 million.

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