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Scicom to secure one big contract annually for growth momentum (New Straits Times 2017)

13 Nov 2017 (Mon)

KUALA LUMPUR: Business process outsourcing (BPO) provider Scicom (MSC) Bhd aims to secure one big contract every year to sustain its growth momentum,

 

Chief executive officer Datuk Seri Leo Ariyanayakam said the fact that the company is diversified across all facets augurs well with its growth plan.

 

He also emphasised that Scicom is unfazed over the expiry of its 15-year tax exemption beginning November 6 this year as it has a clear strategies to drive business growth in the long term.

 

“The trick is to get one new big business every year, and that’s how you sort of maintain your growth momentum.

 

“I wouldn’t necessarily agree that there’ll be impact. We have a lot of businesses in the pipeline. It’s just a matter of time to converge,” he told reporters after Scicom annual general meeting here today.

 

He said Scicom is resilient in the sense that is has multinational clients, a diverse suite of products, and work across different markets.

 

“We are quite unique in that perspective. We are sort of recession proof, product proof. We are doing different things and continue to diversify as a company,” he said.

 

According to MIDF Research report recently, Scicom has not made any losses prior to and since listing.

 

From financial year 2014 (FY14), the company included a new stream of income from the provision of back-end solutions to EMGS (Education Malaysia Global Services), which is under a multi-year concession, that started since 2013.

 

Although without a formal dividend policy, Scicom has been generous with its dividend payout.

 

The company has paid out more than 70 per cent of its profits since FY14.

 

Asked if the company will be able to provide shareholders with generous dividend payout after the tax exempt came into effect, Leo said, “I don’t see why we can’t do that. On average, we have been doing 70 per cent over the last few years, so don’t see that as a problem”.

By Farah Adilla / New Straits Times  | November 13, 2017 : 14:57HRS MYT