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Censof Partners with Microsoft to Accelerate Digital Transformation of the Public Sector in Malaysia

by Dimple Dimple No Comments

 

Kuala Lumpur, 20 May 2021 – Censof Holdings Berhad (“Censof” or the “Group”), a technology holdings company specialising in financial management software solutions, has been announced as one of Microsoft’s partners to advance the digital transformation of Malaysia’s key industries, including the public sector.

Under the collaboration, Censof will be working together with Microsoft to deliver its Government Resource Planning (GRP) system, which will run on Microsoft Azure, to meet the evolving needs of the Government and public sector. The GRP system, which is a flexible and scalable modular financial management system, redefines the future of resource planning for the Malaysian public sector while enabling the government to deliver enhanced public services with greater accountability and transparency to the people.

“For Censof to arrive at this momentous milestone with Microsoft is a testament of our work in digital transformation of the nation. This marks our initiative to strengthen Censof’s position as a significant player in providing efficient software solutions to the ministries and government agencies. We will constantly stay abreast with the latest developments on innovative technologies and continue to innovate and capitalise on our experiences, knowledge and capabilities to create and provide improvements to our existing products and solutions to support and drive Microsoft’s “Bersama Malaysia” initiative. I also value the support from Crayon in ensuring the impact of this remarkable initiative will be a positive one for our country,” said Ameer Shaik Mydin, Group Managing Director of Censof.

In line with the objective of digitalising Malaysia, this collaboration will see Censof’s renowned GRP system being integrated seamlessly, with Microsoft Azure and other data technologies. As the Government of Malaysia commits to embark on its digital aspirations, Censof’s GRP system is ready to further provide vast and greater technological advancements for the government resource planning system that will directly create a positive impact on the Malaysian government’s ability to maximise its resource and widely influence how other industries operate their businesses in the future.

The collaboration between Censof and Microsoft is made possible with the support and assistance by Crayon –a global leader in digital transformation services, and one of the few accredited Microsoft Azure Expert Managed Service Providers. “Being the nominated partner by Censof for this project is a great honour for us. We are committed to bridge the growth of our partners, and hence add value by providing end-to-end services and premium support that will reflect positively on their adoption and optimization performance,” said Harith Ramotheram, CEO for Crayon Malaysia and Indonesia.

This relationship reflects Censof’s joint commitment in supporting Microsoft’s “Bersama Malaysia” initiative, to advance the nation’s digital transformation across the public and private sectors.

“Microsoft is committed to supporting Malaysia’s MyDigital ambitions and further empower the nation’s inclusive digital economy in collaboration with our strong ecosystem of partners. The Government of Malaysia has outlined a progressive Digital-First and Cloud-First strategy for the public sector, and we look forward to working closely with Censof to help realise our nation’s digital goals, with Microsoft Azure as the trusted technology foundation for Malaysia,” said K Raman, Managing Director of Microsoft Malaysia.

Censof Declares Interim Single-Tier Dividend of 0.75 Sen

by Dimple Dimple No Comments

Full year FY2021 Highlights

Full year revenue of RM87.7 million, up by 12.6%.

PBT improved to RM29.8 million, from LBT of RM70.8 million.

PATAMI improved to RM26.8 million, from LATAMI of RM72.4 million.

Basic EPS of 5.32 sen.

Declares interim single-tier dividend of 0.75 sen per share for FY2021.

Fourth quarter FY2020 Highlights

PBT turnaround to RM13.5 million, from LBT of RM73.8 million.

PATAMI turnaround to RM12.7 million, from LATAMI of RM74.0 million.

Completion of the Subscription Agreement with Packet Interactive Sdn Bhd (Kiple Pay) to subscribe a 51% stake in T-Melmax Sdn Bhd.

Equity interest in ABSS increased to 89.07% from 58.20%.

Kuala Lumpur, 18 May 2021 – Censof Holdings Berhad (“Censof” or the “Group”), a technology holdings company specialising in financial management software solutions, announced its financial results for the fourth quarter and full year ended 31 March 2021 (“FY2021”) today.

For the full year, revenue jumped 12.6% year-on-year to RM87.7 million, as a result of higher contributions from the financial management solutions – government (“FMS – G”) and financial management solutions – commercial and small and medium enterprises (“FMS – C & SME”) business segments. Correspondingly, profit before tax (“PBT”) and profit after tax and minority interests (“PATAMI”) were RM29.8 million and RM26.8 million respectively. The significant improvement in the Group’s earnings in FY2021 were largely due to the higher profit contributions from FMS – G and FMS – C & SME of RM12.1 million and RM5.4 million, an increase by 47.5% and 126.4% respectively, as compared to FY2020. The recognition of a gain on fair value adjustment on short-term investment of approximately RM16.2 million and a gain on disposal of short-term investment of about RM2.1 million were also the positive contributing factors to the Group’s profitability. On the whole, this was a major turnaround in contrast to the loss before tax of RM70.8 million and loss after tax and minority interests of RM72.4 million in FY2020, where a substantial loss was recognised in relation to the divestment of an associate, Dagang NeXchange Berhad’s shares. Basic earnings per share for FY2021 was higher at 5.32 sen, compared to a loss of 14.43 sen in the previous year.

As for the fourth quarter 2020, revenue increased marginally by 0.6%, year on year to RM32.7 million, as a result of higher revenue generated from the Netsense Group and higher sales demand for the ABSS products in Singapore. Both fall under the ambit of the FMS – C & SME segment. More importantly, the PBT and PATAMI experienced impressive turnaround, having recorded profits of RM13.5 million and RM12.7 million respectively, from significant losses of RM73.8 million and RM74.0 million respectively a year ago. The profits were mainly attributable to improved contributions from the FMS – C & SME segments by 79.3%, savings of finance costs by RM0.7 million per quarter upon the settlement of share margin loan from MIDF and term loan from Kenanga Investment Bank Berhad, fast track of project deliverables from the FMS – G segment and a gain recognition of RM6.8 million from the fair value adjustment on its short-term investment.

The Group’s financial position remains healthy. Net assets per share improved to 15.89 sen as at 31 March 2021 from 11.51 sen twelve months earlier. The cash and bank balances in turn, surged to RM29.3 million from RM11.4 million as at end FY2020.

“I am extremely pleased that Censof has finally achieved a turnaround year after booking three consecutive years of losses. FY2021 has been a turning point for Censof where we will continue to accelerate forward. While the overall economic conditions continue to present a challenge for us with re-imposition of the COVID-19 related restrictions, Censof will remain resilient in such uncertain times. As this is only the beginning of our turnaround story, we pledge to strive and deliver the highest standard of products to serve all our customers.

“We foresee an acceleration in the shift of businesses towards adopting digitalisation with the support of grants and initiatives by the government in that agenda. As such, we are confident that the demand for technology solutions will continue to grow as we explore more opportunities to develop unique products and solutions together with our strategic alliances and partners to expand our business solutions. The collaboration with Kiple Pay via the 51% subscription into T-Melmax and the recent increased equity interest in ABSS testify our efforts in exploring synergistic partnerships in enhancing our business in a sustainable manner. We are highly optimistic Censof will achieve better financial results, in line with our strategic roadmap to continue focusing and expanding our core businesses,” said Ameer Shaik Mydin, group managing director of Censof.

The Board of Directors has declared an interim single-tier dividend of 0.75 sen per share on 552.3 million ordinary shares, amounting to approximately RM4.1 million, which shall be paid on 25 June 2021.

Censof Inks Contract Worth RM17.86 Million from the Ministry of Transport

by Dimple Dimple No Comments

Kuala Lumpur, 10 March 2021 – Censof Holdings Berhad (“Censof” or the “Group”), a technology holdings company specialising in financial management software solutions has accepted the Letter of Award from the Ministry of Transport Malaysia (“MOT”) for a contract named “Perolehan Pembangunan Sistem Pelesenan Kenderaan Perdagangan” (“the Contract”) through its wholly-owned subsidiary, Century Software (Malaysia) Sdn Bhd (“Century Software”).

 This contract, valued at RM17.86 million, involves the development of a commercial vehicle licensing system for a tenure of 36 months, commencing from 1 April 2021 until 31 March 2024. The licensing system generally caters for the application of commercial licenses for land transportation.

“This contract is a testament of our work in digital transformation and this marks our initiative to strengthen Censof’s position as a significant player in providing software solutions to the government agencies, which will ultimately contribute positively to the Group’s bottomline. With this said, I would like to express my gratitude to MOT for their trust and confidence in us as we continue to deliver and meet the standards expected by MOT,” said Ameer Shaik Mydin, group managing director of Censof.

“We will constantly stay abreast with the latest developments on innovative technologies for businesses needs and to capitalise on our new experiences, knowledge and capabilities to create and provide improvements to our existing products and solutions,” he added.

To recap, Censof was awarded a contract by the Ministry of Finance in early January this year to provide maintenance and support services for the government’s budget management information system, MyResults. The contract, which is valued at RM10.12 million, is for the tenure of 24 months, from 1 January 2021 to 31 December 2022.

Happy International Women’s Day 2021 #ChooseToChallenge

by Dimple Dimple No Comments

A challenged world is an alert world. Individually, we’re all responsible for our own thoughts and actions – all day, every day.

We can all choose to challenge and call out gender bias and inequality. We can all choose to seek out and celebrate women’s achievements. Collectively, we can all help create an inclusive world.

From challenge comes change, so let’s all choose to challenge.

Ang Hsin Hsien – We live in a man’s world, no pun intended. I learned that at times it can be quite tiring to exist in a world, by default, not designed for you. And we as women, adapt.

Digitalization offers a clean slate and a variety of opportunities for women participation from the labor force, financial markets, entrepreneurship, or even be part of the gig economy.

Armed with our softer social skills, empathy, and willingness to adapt to changing circumstances, women now have the potential to bypass some of the traditional cultural and mobility barriers, work flexibly and distantly.

So, we have gone a full circle, the world is now built for us.

 

Siti Safiah Yahaya – As a mother, daughter, wife, career lady, and in a leadership roles, we need to embrace digital technology either to educate people around us, or learn from them.

 

Lena Lee – With the increasing number of women participation in the workforce, we should embrace the power of the latest technology and implement it in our work as it proven to simplify our work and increase operational efficiency. Technology knowledge makes it more possible for women to have a career, contribute to nation’s building and still handle the domestic role.

 

Mazlina Mat Nawi – The role of women in the digital industry will boost the economy if allowed for their full participation in society. My wish on IWD2021 for all the women around the globe is for everyone to support every woman and respect everything they do because they deserve it. The world will soon learn to treat women the way they deserve to be treated.

 

Amutha – With the increased participation of women in the tech sector will boost the economy and allow for their full participation in society. Digitalization offers a variety of opportunities for female empowerment and for a more equal female participation in labor markets, financial markets, and entrepreneurship. Currently, digitalization seems to favor the female labor force that faces a lower risk of being replaced by machines, as compared to the male labor force. Women’s often superior social skills represent a comparative advantage in the digital age, and this is particularly when social skills are complemented with higher education and advanced digital literacy.

”What we women need to do, instead of worrying about what we don’t have is just love what we do have, Never be limited by other people’s limited imaginations.”

 

Dini Anggraini – The digitization of technology has greatly influenced various areas of life. Become a woman is not a barrier to new innovation. The role of women in the digital industry has grown, it is proven by many female developers, female leaders, and other professional rankings even to C-level management, which proves that women have equal opportunities and potential roles as men in contributing to the digital industry.

Happy International Women’s Day, be a person full of dreams and love.

 

Netsense Business Solutions’ CEO, Abdul Rehman, Receives Acumatica’s Most Valuable Professional Award 2020

by Dimple Dimple No Comments

Petaling Jaya. 1 March 2021 – Netsense Business Solutions’ Chief Executive Officer (CEO), Abdul Rehman was named Acumatica’s Most Valuable Professional (MVP) 2020. He is the only MVP named in Asia currently. The Acumatica MVP Program was created to show tangible gratitude to community members who actively participate and contribute in growing and improving Acumatica’s cloud ERP solution and cloud xRP platform by engaging in various activities organized by Acumatica for the benefit of its community.

The award announcement was made by Ajoy Krishnamoorthy, Executive Vice President, Products and Chief Strategy Officer of Acumatica during Acumatica 2021 R1 Virtual Launch Event. The esteemed title is awarded to Abdul Rehman in acknowledgement of the passion, commitment and support he has shown towards the continued success of the Acumatica community. Acumatica’s MVP is described as an individual who has influenced the growth and direction of Acumatica in a positive way through sheer passion and dedication. Abdul Rehman is the founder and CEO of Netsense Business Solutions’ companies since 2013. His experience in Mid-Market ERP applications, paired with his vision, leadership and knowledge in the industry has boosted Netsense’s success and growth in the recent years as ERP specialist.

“I appreciate the recognition from our technology partner, Acumatica, and I would like to thank my colleagues at Netsense and the management of Censof Holdings Berhad for their support and guidance. Receiving this honour for the first time has inspired myself and my team to strive for continuous success and growth. It is indeed a proud moment for us to be recognised and be given this award and to be the only MVP in Asia currently,” said Abdul Rehman.

Netsense Business Solutions Pte Ltd & Netsense Business Solution Sdn Bhd, subsidiaries of Censof Holdings Berhad, has presence in Singapore, Malaysia and Indonesia. Providing business solutions to more than 40,000 active users worldwide and 500+ business process automated, Netsense’s array of business solutions include ERP Software (Enterprise Resource Planning System Solutions), Intermediate Accounting Software, CRM, HR Software (Human Resource Management Solutions), Payroll, Project Management, Business Intelligence Tools, Customized Dashboards, Mobile Apps and E-Commerce Solutions that benefit 100+ SME’s.

Censof Proud To Be Part Of The Digital Initiative In Pushing The Digital Economy Forward

by Dimple Dimple No Comments

LAST week, scores of technology-related companies saw their share prices climbing ahead of Prime Minister Tan Sri Muhyiddin Yassin’s announcement of the MyDIGITAL blueprint on Friday.

Digital services and solution providers such as Revenue Group Bhd, Dataprep Holdings Bhd, GHL Systems Bhd, Dagang NeXchange Bhd, Censof Holdings Bhd and ManagePay Systems Bhd were among the top gainers, along with two obvious winners — Telekom Malaysia Bhd (TM) and AwanBiru Technology Bhd.

Prestariang Systems Sdn Bhd, a unit of AwanBiru — formerly known as Prestariang Bhd — has been appointed a managed service provider (MSP) to manage cloud services for the government.

TM, on the other hand, has received conditional approval to provide services to the government for the migration of 80% of public data into the hybrid cloud system by end-2022. This is expected to translate into lower government cost in information technology management and better efficiency in the collection and management of data.

Besides TM, the other international cloud service providers named for the task were Microsoft, Google and Amazon.

Market observers opine that the impact of upcoming contracts on their bottom lines will only be seen over a long-term period of 5 to 10 years.

“Note that the contracts that will be awarded to the said beneficiaries of Malaysia’s digital blueprint are for the long term. The impact on bottom lines will not be seen immediately, but rather, be visible only over the next 5 to 10 years. For now, we can only tell that negotiations have begun,” Areca Capital Sdn Bhd CEO Danny Wong tells The Edge.

He adds that any impact and true value arising from the deals will depend on the details of the actual contracts when they are awarded, and thereon, the earnings, which will then reflect the execution and good delivery records of these technology partners.

TM reported a 26% increase in net profit to RM329.4 million for the third financial quarter ended Sept 30, 2020 (3QFY2020), from RM261.3 million a year earlier, which is partly attributed to the working from home shift amid the Covid-19 pandemic.

Revenue for the quarter fell 5.7% to RM2.69 billion from RM2.85 billion for the previous year’s corresponding quarter.

On a quarter-on-quarter basis, its net profit increased 20% from RM274.7 million, while revenue grew 3.8% from RM2.59 billion.

The sequential increase in revenue was attributed to higher contribution from voice, internet and data services. Lower operating cost, as a result of cost optimisation programmes, contributed to the increase in net profit.

During the quarter, TM said it invested 15% of its revenue in capital expenditure (capex), amounting to RM400 million, on network optimisation.

In a filing, it said 50% of the amount was invested in network access, 17% for its core network, and the balance 33% on its support system.

In a recent CGS-CIMB’s report on TM, analyst Foong Choong Chen says investors agree with the research house that the mobile industry lacked growth, while the fixed line business projected a more positive growth outlook.

When asked if TM’s recent earnings improvement was sustainable and if there would be further upside to its share price, Foong opines that TM will continue to enjoy good growth in its fibre broadband, backhaul leasing and ICT businesses, while cost savings will see its Ebitda margin rising further from FY2019’s 35.2% to 39.5% in FY2022 forecast. CGS-CIMB raised its target price on the stock to RM7 from RM5.60 previously.

Meanwhile, AwanBiru remained in the red for the first quarter ended Sept 30, 2020, with a narrowed net loss of RM968,000, from RM3 million in the same period the previous year. Revenue was RM35.5 million, 7% lower from RM38.1 million earlier.

The group said it made substantial progress in its rationalisation plan to monetise non-core assets and reduce operating cost by disposing of non-core assets and loss-making operations over the year. This helps strengthen overall cash flow and is expected to improve future results.

RHB Research analyst Lee Meng Horng believes that there will be more opportunities in the e-government space with the launch of MyDIGITAL. AwanBiru, which offers a full suite of cloud-based products, is looking to drive and promote digital adoption in the public sector.

That said, Lee is bearish on the stock as AwanBiru’s share price has run ahead of fundamentals. This is owing to the “uncertainties on its earnings sustainability, the discontinuation of it being a Microsoft Channel Partner, and the expiry of its Master Licensing Agreement 3.0 with the Malaysian government, which contributed more than 90% of group revenue”.

“These factors could continue to undermine the firm’s turnaround efforts, despite it scoring a recent contract win,” Lee says in a report. RHB Research had previously ascribed the stock with a “sell” call with a target price of 32 sen.

While actual contracts for MyDIGITAL have yet to be announced, a significant contribution to both TM and AwanBiru’s bottom lines can be expected.

“The digital blueprint is a timely and much-needed plan to drive the country’s digitalisation economy. Stocks of online-based businesses or operations related to cloud and e-payments will stand to benefit as more announcements are made,” says Rakuten Trade Research vice-president Vincent Lau.

Digital initiatives to keep momentum in technology stocks

Worth noting is that digital banks and technology-related companies are also potential beneficiaries of the MyDIGITAL blueprint.

Lau points out that the digital initiatives will give technology stocks “legs to run” for some time after their share prices have reached fairly rich valuations. Interest in technology stocks is expected to be sustained for the long term.

“Retail participation will be sentiment driven until the actual contract awards to the intended companies. This positive [run] will flow to the second- and third-tier players, something that is encouraging as glove stocks are taking a breather.

“Everyone [technology and related players] will stand to benefit. With the advent of technology and issues such as global chip shortages, you can see the trends that will be pushing the digital economy forward,” Lau notes.

Censof Delivers Q3FY2021 Revenue of RM23.7 Million

by Dimple Dimple No Comments

Business remains sturdy with increasing demands

Key Highlights
• Q3FY2021 revenue increased by 42.2% YoY.
• PBT soared by 431% YoY.
• PATAMI reported at RM2.0 million.
• Basic EPS improved to 0.40 sen.
• Healthy financial position with an improved net assets per share of 14.35 sen and cash and cash equivalent of RM26.4 million.

Kuala Lumpur, 8 February 2021 – Censof Holdings Berhad (“Censof” or the “Group”), a technology holdings company specialising in financial management software solutions, announced its third quarter ended 31 December 2020 (“Q3FY2021”) financial results today, where revenue increased to RM23.7 million, from RM16.7 million in the corresponding quarter last year. The profit before tax (“PBT”) rose from RM0.6 million to RM3.0 million while the profit after tax and minority interests (“PATAMI”) was at RM2.0 million as compared to a loss of RM83,000 in the preceding year. Correspondingly, the basic earnings per share improved to 0.40 sen from a loss of 0.02 sen.

The revenue growth primarily came from higher project deliverables under the Financial Management Solutions – Government segment and contributions from the Financial Management Solutions – Commercial & Small Medium Enterprises (“SME”) segment, arising from the higher demand for Asian Business Software Solutions Pte Ltd’s (“ABSS”) products and revenue from the Netsense Group, which was acquired in January 2020.

On top of the higher revenue, finance cost savings of approximately RM0.7 million per quarter upon the full settlement of share margin loan from MIDF Amanah Investment Bank Berhad and a term loan from Kenanga Investment Bank Berhad in second quarter of current financial year end, and a gain on fair value adjustment of approximately RM0.5 million on the short-term investment of Dagang NeXchange Berhad played a role in boosting Censof’s Q3FY2021 earnings.

For the cumulative period ended 31 December 2020, Censof registered a 21.3% increase in revenue to RM55.0 million. Cumulative PBT was RM16.2 million, in contrast to RM3.0 million for the same period in the preceding year. The substantial increase was mainly due to a gain on fair value adjustment and a gain on disposal of quoted investment which amounted to approximately RM9.4 million and RM2.1 million respectively.

The Group’s financial position remained healthy with an improvement of its net assets per share to 14.35 sen as at 31 December 2020, from 11.51 sen as at 31 March 2020. The Group’s cash and cash equivalent also saw a surge to RM26.4 million from RM7.7 million.

“Amidst the challenging economic conditions that we are facing due to the COVID-19 pandemic, we continue to strive to deliver the highest standard of products to serve our customers, both the government sector and the SME market. Nonetheless, the pandemic has indeed expedited the migration of businesses towards paperless transaction and digitalisation. As such, we view this as an opportunity to push the adoption of technology transformation, leveraging on the demands for technology solutions in Malaysia and Singapore. With this said, we recently entered into a share sale and purchase agreement to acquire an additional 30.87% equity interest in ABSS, which will ultimately increase our stake from 58.2% to 89.07%, upon the completion of the proposed acquisition. This is a testament of our efforts as we remain committed to streamline and focus on growing our core businesses which have since produced positive results for the Group,” said Ameer Shaik Mydin, group managing director of Censof.

Censof’s Subsidiary, ABSS Forms Strategic Partnership With Storecove

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Kuala Lumpur, 3 February 2021 – Censof Holdings Berhad (“Censof” or the “Group”), a technology holdings company specialising in financial management software solutions, through its subsidiary company, Asian Business Software Solutions Sdn Bhd (“ABSS”) has formed a strategic partnership with StoreCove, a SaaS e-invoicing solution provider headquartered in The Netherlands and with offices in Germany and Australia. With this partnership, ABSS and StoreCove will provide an electronic invoicing solution to small and medium enterprises (“SMEs”) in Singapore, ensuring faster and more sustainable way to transact invoicing processes nationwide and worldwide, through the adoption of the Singapore Government’s nationwide e-invoicing initiative, namely InvoiceNow. Built on the Global Peppol Network, InvoiceNow facilitates the direct transmission of invoices in a structured digital format across the finance systems, resulting in a smoother invoicing process, faster payments and greener environment.

 The adoption of e-invoicing helps businesses to improve efficiency by minimising human errors, reducing costs, reducing payment processing period and be more environmentally friendly. StoreCove’s modern Application Programming Interface (API) provides seamless integration with its partners’ software platforms to offer e-invoicing functionality as part of its customer solutions, whereby all incoming and outgoing invoices are automatically received and sent.

 It is imperative to accelerate the use of digitalisation for SMEs in the Southeast Asia, and we are excited to partner with StoreCove; they have a great track record in helping SMEs with e-invoicing here in Singapore. Together with ABSS, as the leading accounting software provider to the Asian SME market, we know this partnership will bring improved invoicing efficiency to over 30,000 Singapore SMEs, helping them save valuable time. We have recently surpassed 1,000 InvoiceNow registrations and look forward to more businesses benefiting from sending and receiving FREE e-invoices directly from our ABSS and Financio accounting software,” said Rhys Brown, Chief Executive Officer of ABSS.

 “We are impressed by the uptake of e-invoicing in the Asian SME market and are proud to be part of this swift growth. ABSS has an experienced development team that had no difficulties connecting to our RESTful API. The Government of Singapore has stimulated the expansion of e-invoicing in the Asian market, which led to an adoption speed not seen in any other Peppol country before. ABSS, by offering InvoiceNow registration to all their customers is a key driver of this growth,” said Dolf Kars, Chief Executive Officer of Storecove.

 ABSS is the developer and leading supplier of ABSS-branded financial management and accounting software provider that supports the Asian SME markets. Their services include providing tools that simplify accounting management that extend throughout the Southeast Asia region, including Malaysia, Singapore and Hong Kong.

Censof Acquires Additional 30.87% Interest in ABSS for RM14.1 Million

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Kuala Lumpur, 25 January 2021 – Censof Holdings Berhad (“Censof” or the “Group”), a technology holdings company specialising in financial management software solutions, today announced that it has entered into a Share Sale and Purchase Agreement (“SSPA”) to acquire a collective 162,305 ordinary shares, representing approximately a 30.87% equity interest in Asian Business Software Solutions Pte Ltd (“ABSS”) from the latter’s minority shareholders.

The RM14.1 million purchase consideration was arrived at a “willing-buyer, willing-seller” basis after taking into consideration, amongst others, the historical financial performance of ABSS, the value of the proprietary software portfolio and the prospects of ABSS moving forward. The purchase consideration shall be satisfied via proceeds from a proposed private placement exercise of up to 20.0% of its total number of issued shares to third party investors to be identified later, under the general mandate pursuant to Sections 75 and 76 of the Companies Act 2016.

Based on an indicative issue price of RM0.25 per placement share, the proposed private placement can raise gross proceeds of up to RM25.1 million. In addition, the proceeds have also been earmarked to fund the working capital requirements and the estimated expenses associated with the placement exercise.

Based on the SSPA, the minority shareholders, namely Paul Alistair Jennings, Fox Equities Pty Ltd and Lum Chong Eu will dispose 117,470, 38,220 and 6,615 ordinary shares, representing 22.34%, 7.27% and 1.26% interest in ABSS respectively.

ABSS is a developer and a leading supplier of ABSS-branded financial management and accounting software that supports the Asian small and medium enterprises (“SMEs”), and cloud-based accounting product, namely Financio, catering for start-ups and entry level SMEs. Censof initially acquired ABSS back in 2015 and is presently holding a 58.20% equity interest in ABSS. Following this transaction, the stake will increase to 89.07%, while the remaining minority interest is held by Paul Alistair Jennings (5.90%) and Rhys Brown (5.03%).

“ABSS is well-established and widely known as the market leader amongst the SMEs in Singapore and Hong Kong. The company has delivered continuous strong growth and contributed to Censof’s earnings since our initial acquisition in July 2015. We are pleased to have reached this agreement (with the minority shareholders) that essentially increased our equity interest in ABSS to over 89%.”

“The acquisition is in line with our strategies and is a compelling opportunity for us to expand our business in the SME segment, as well as strengthening our footprint in the Asian market. We look forward to benefit from the upside and robust prospects that ABSS holds and are confident that this strategic investment will provide Censof with sustainable profitable growth and concurrently accelerate our position in the SME market within the Asian region in the near term. With this said, the proposed private placement exercise is the most cost-effective manner for us to raise funds without incurring interest expenses as compared to bank borrowings,” said Ameer Shaik Mydin, group managing director of Censof.

“ABSS is delighted to recognise increased investment by the Censof group. Following a strong financial performance the past 12 months, this investment will ensure ABSS is well placed to deliver future growth and accelerate SME Accounting automation across South East Asia,” said Rhys Brown, chief executive director of ABSS.

Censof Bags RM10.12 Million Contract from Ministry of Finance

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Kuala Lumpur, 6 January 2021 – Censof Holdings Berhad (“Censof” or the “Group”), a technology holdings company specialising in financial management software solutions, through its wholly-owned subsidiary, Century Software (Malaysia) Sdn Bhd (“Century Software”) has accepted the Letter of Award from the Ministry of Finance (“MOF”) to provide maintenance and support services for the Malaysian government’s budget management information system, MyResults.

The contract, which is valued at RM10.12 million is for the tenure of twenty-four (24) months from 1 January 2021 to 31 December 2022.

“We are honored to be entrusted by MOF to be the provider of the maintenance and support services for MyResults on the Outcome-Based Budgeting for the government of Malaysia. This project was developed by Century Software for the MOF and was completed back in May 2019. Following the completion, we were awarded with the maintenance and support services in December (2019). Today, we are proud that we are once again being entrusted to provide the same services for another 2 years. We truly appreciate the confidence which MOF has placed in us as this fundamentally testifies our technical capabilities and deep expertise to deliver the end results. Being an innovative technology company, we will continue to enhance our solutions and systems in response to evolving technologies, going forward,” said Ameer Shaik Mydin, group managing director of Censof.

MyResults is an Outcome-Based Budgeting platform, of which high-level national strategies are linked to specific budget programmes and activities. This aims to improve the government’s resource management endeavors while enhancing transparency and accountability. As this budget system is integrated across the various ministries, government officials are able to plan their budgets more effectively.

Moving ahead, Century Software continues to strive for excellence in their products offerings. Over the last three (3) months, the Company has successfully secured three (3) new Government Resources Planning (GRP) contracts with the Board of Quantity Surveyors Malaysia, Yayasan Guru Tun Hussein Onn, and the Medical Device Authority with the total contract sum of RM1.38 million. In addition, Century Software has also secured upgrades services for its existing clients, namely the National Visual Arts Development Board, Lembaga Juruukur Tanah Malaysia, Malaysia Productivity Corporation, Bintulu Port Authority, Lembaga Pelabuhan Kuantan, and Railway Assets Corporation, bringing the total contract sum to RM4.69 million.