By LYDIA NATHAN / Pic By TMR File
Radiant Globaltech Bhd is confident the acquisition of two new companies will contribute to the company’s growth and revenue in the second quarter (2Q) this year.
Last December, the retail technology solutions provider acquired computer programming and software consultancy Adaptive POS Sdn Bhd (APSB) and content management solutions provider Infoconnect Commerce Sdn Bhd.
Radiant Globaltech MD Paul Yap (picture) said typically in its environment, the 1Q sees its net margin lower compared to the rest of the quarters.
“After the acquisition, we were able to immediately reap the benefits of our corporate exercises by securing Jollibean Foods Pte Ltd. We have also fully rolled out the front-end point-of-sales (POS) equipment and cloud-based back end, as well as mobile retail services to all its 26 outlets in Singapore,” Yap said.
The company posted a net profit of RM569,000 with total revenue of RM13.82 million for 1Q ended March 31, 2019.
“This is usually due to the long holidays and the Chinese New Year, also for most of retailers’ budgets are cleared at year-end and not the beginning.
It is not considered seasonal, but from what we’ve seen it is low,” he said to reporters after the company’s post AGM in Kuala Lumpur yesterday.
Yap said the company also absorbed some of the cost from its two new subsidiaries and has not seen any contribution from both in the past three months.
However, he expects it to pick up for the rest of the year in terms of margin and revenue, especially after securing Singaporean-based Jollibean Foods, which was a POS under APSB.
The purchase of Jollibean Foods allows the company to venture into the food and beverage, while with Infoconnect, it provides an avenue to go into the non-retail segment such as manufacturing and industrial markets.
Yap said other expansion plans for the firm will include strengthening its footprint in the South-East Asian region, particularly in the neighbouring countries.
Radiant Globaltech is currently in Vietnam and Cambodia, which contributes about 10% of the company’s revenue yearly.
“It will all depend on the right timing. Looking at the company’s history, we usually enter markets with potential customers. This is to ensure we can confidently be sustainable.
Next, we will look at countries like Indonesia, Thailand and Myanmar.
“Malaysia is still the biggest market at this point for the company, but we are very optimistic about the future. Our business is quite unique because it provides software, hardware and solutions which most of our peers don’t,” Yap said.
According to him, the hardware segment is currently the largest contributor to the company’s revenue, but Radiant Globaltech will focus on solutions and services in the future.
Additionally, the company will roll out software solutions for some 140 fast food chain stores both in Singapore and Malaysia.