GSTechnologies Ltd (LSE: GST), the integrated information and communication technology infrastructure solutions provider, is pleased to announce the Company's results for the year ended 31 March 2021.
Period heavily impacted by the consequences of the Covid-19 pandemic, although a recovery seen in the second half, particularly in the fourth quarter.
Total income for the year of US$3.41 million, a reduction of 25.1% from the prior year (2020: US$4.55 million). However, total comprehensive loss for the year reduced to US$0.33 million (2020: loss of US$0.46 million).
Appointment of two new executive directors in January 2021, Jack Bai and Shayne Tan, together with an investor group led by Jack Bai taking a 20% stake in the Company through a placing of new shares, who will led the Group's blockchain technology related activities.
Establishment of wholly owned subsidiary in UK, GS Fintech Ltd and in Singapore, GS Fintech Pte Ltd in February 2021 to facilitate the planned expansion into blockchain related technologies and services.
Post Period Highlights
Signed a collaboration agreement with Wise Mpay, the Singaporean blockchain payment solution provider, on 28 May 2021, with a view to Wise MPay providing the Company with software and services to facilitate the Company's plans to develop new higher-growth synergistic business areas focussed on blockchain technology, particularly those applicable in the banking and wider financial services sector.
The events that happened during the 2020/2021 financial year were unprecedented and whilst improvements have been seen, the Covid-19 pandemic is not yet over. This health crisis has had an enormous impact on every aspect of our lives, but I am pleased to report that in such a difficult environment GST's employees stepped up to the challenge.
With the onset of the pandemic our top priority became the health and safety of our employees and customers. We also immediately implemented strict cost controls and cash preservation measures in order to run the business, as far as possible, at a 'cash flow break even' position whilst the full impact of the pandemic was assessed. Our main trading subsidiary, EMS Wiring Systems Pte Ltd ("EMS"), also utilised appropriate Singapore Government Covid-19 related economic assistance and relief programmes where appropriate.
As reported in our interim results, released in January 2021, the first half of the year saw a 70% decrease in revenue compared to the same period in the previous year, primarily due to the delay or cancellation of projects in light of the impact of Covid-19. However, I am pleased to report that the second half performance, and in particular that in the final quarter of the financial year was a significant turnaround. Overall revenue for the year of $2.83 million was decline of 37% compared to the prior financial year. Through careful management of our costs and other income in the form of grants of US$0.58 million, we are pleased that the total loss for the year was contained to $0.33 million, compared to a loss of $0.46 million in the prior year.
Despite the challenges brought by the pandemic, GST has always sought to innovate and explore new areas of business employing disruptive technologies that can create shareholder value.
In our EMS business one example was the award of a grant valued at approximately US$200,000 from Enterprise Singapore, to develop a prototype liquid film cooling system for use in data centres. By using EMS' liquid cooling method we believe we can help businesses manage the total cost of data centre and computing asset ownership by reducing the cost to provide and maintain a high degree of cooling efficiency. Once commercialised we believe this solution will be attractive to both new and existing data centre operators and EMS is well placed to provide both the solution, together with ongoing service, maintenance and training support.
Whilst the Company remains focussed on developing the existing business of EMS, the Company's goal is to also focus on new higher growth synergistic business areas. After careful consideration we concluded that the Company's strategy should include seeking to enable and enhance the current Internet of Things ("IoT") and ICT offerings through the application of new highly scalable disruptive technologies, in particular enterprise blockchain solutions and services.
As part of this strategic move, Jack Bai and Shayne Tan were appointed as Executive Directors of the Company in January 2021, together with an investor group led by Jack Bai taking a 20% stake in the Company through a placing of new shares. Subsequent to the appointment of Jack and Shayne we also incorporated new 'GS Fintech' subsidiaries in the UK and Singapore to help facilitate the Company's planned expansion into blockchain related technologies and services, particularly in the financial sector.
Post period end we advanced these activities further with the signing of a collaboration agreement with Wise MPay, the Singaporean blockchain payment solution provider, with a view to Wise MPay providing the Company with software and services. Through the collaboration between GST and Wise MPay the Company plans to launch a borderless neobanking platform providing next-generation digital money solutions that we outlined in our announcement on 28 May 2021. We are very pleased to be working with Wise MPay and I look forward to reporting on our continued progress in due course.
I believe our ability to add a pipeline of meaningful innovations will fuel our future growth and we are very excited by the potential for blockchain enabled financial services, coupled with the continuing innovation of the EMS team.
I believe GST has weathered the pandemic well and has proved its flexibility and resilience in dealing with an unprecedented and unforeseeable situation, together with continuing to innovate and seek appropriate new opportunities.
In particular, the appointment of Jack Bai and Shayne Tan to the Company's board has allowed us focus on new higher growth synergistic business areas focussed on blockchain technology, particularly those applicable in the banking and wider financial services sector. We believe that pioneering next-generation digital money solutions based on blockchain technology will provide GST with the opportunity to enhance its current offering and enable it to offer differentiated cutting edge technology solutions to a bigger client base.
I believe that we have the right strategy in place to drive forward both our EMS and GS Fintech businesses and that GST is extremely well positioned for the future.
In closing I would like to take the opportunity to thank all our staff for their outstanding commitment and hard work during the year, helping us to overcome the challenges of the pandemic.
Tone Kay Kim GOH
Chairman You may read our full year financial report below: