Trading Update and Notice of Results
17 March 2015
RapidCloud International plc (AIM:RCI), the computing services, web-hosting and web-solutions provider based in Southeast Asia, announces that it is trading in line with market expectations.
In 2014 the Company executed its revised strategy to convert third party associates in the Philippines and Thailand into operating subsidiaries through management control. This will result in consolidation in the accounts which will show an increase in revenue in the year.
In addition, following the Company's successful acquisition of Exxelnet in August 2014, RapidCloud has successfully fast-tracked expansion into Singapore, the world's fourth largest financial centre, where demand for the Company's products and services is strong. In the period since acquisition, RapidCloud Singapore has performed in-line with management expectations in terms of profit contribution for the period and offers Digital Marketing services to its customers, particularly in the area of Search Engine Optimisation (SEO). The total number of clients now exceeds 42,000, following the successful integration of RapidCloud Singapore.
The Company therefore expects to report revenue of RM18.25m, an increase of approximately 60% over 2013. Net profit, before exceptional costs relating to the acquisition, is expected to show growth in line with market expectations.
The current financial period has started well with strong uptake of RapidCloud's products and services to date. The strategy to target larger enterprises, in addition to expanding core SME clients, is progressing well as the Company executes its expansion strategy across territories in South East Asia.
Notice of Results
The Company expects to announce its preliminary results for the year ended 31 December 2014 in the week commencing 25 May 2015.
Raymond Chee, Managing Director of RapidCloud, said: "2014 was another year of significant progress on a number of fronts for RapidCloud and I am delighted to announce trading for the year shows both operational and financial progress with full year results expected to be broadly in line with market expectations for the second consecutive year. We look forward to continuing this progress in the current year with growing confidence."
For further information, please visit www.rapidcloudasia.com or contact:
|RapidCloud International Plc
Raymond Chee, Managing Director
David Cotterell, Chairman
|WH Ireland, Nominated Adviser and Broker
|Tel: +44 (0)20 7220 1666|
|Walbrook, Financial PR and IR
|Tel: 44 (0)20 7933 8792
RapidCloud, one of the few integrated subscription-based computing solutions providers in Malaysia that offers its services through all three currently available segments of cloud computing. The Company is based in Southeast Asia and is one of the few solutions providers in the region to deliver its offerings through all three available Cloud Computing segments, i.e. Software-as-a-Service, Infrastructure-as-a-Service and Platform-as-a-Service.
Formed in 1999 the Company has a well-established cloud offering with a customer base of 37,000. These are predominantly SMEs but also include blue-chip clients such as Deloitte, BAE Systems and Canon, for which RapidCloud’s extensive R&D department creates bespoke software solutions.
RapidCloud currently has operations in Malaysia, Thailand and the Philippines and has plans to expand into Indonesia. According to industry research commissioned by RapidCloud from Frost & Sullivan in 2013, the Cloud Computing industry in Asia Pacific is expected to grow at a CAGR of 49.6% between 2013 and 2015, giving a market size of US45.6 billion by 2015.
RapidCloud International plc was admitted to AIM on 14 August 2013.