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The Group's revenue for the current quarter is RM38.1 million, which was RM2.6 million or 7% higher than the immediate preceding quarter of RM35.5 million. The higher revenue for this quarter can be contributed to higher revenue from Software & Services and Talent which is explained in more details in the notes below:
The Group recorded profit before tax of RM11.3 million, in contrast to a loss of RM0.7 million in the immediate preceding quarter mainly due to net effect of the following:
i. Software & Services and Talent recorded revenue of RM37.4 million, which was RM3.3 million or 10% higher from the previous quarter of RM34.1 million. However, Talent portion of the segment recorded revenue for the current quarter of RM0.6 million, which was RM0.7 million lower than the preceding quarter of RM1.3 million mainly due to many training programs scheduled for the period being deferred as cases of COVID-19 infection in the country continued to rise during this quarter.
Despite recording higher revenue, this segment's profit before interest and tax was lower at RM2.4 million for this quarter as compared to RM2.7 million for the immediate preceding quarter. This was mainly due to higher cost for contract fulfillment incurred in this quarter as well as lower activities for training programs which typically would have yielded higher profit margin.
ii. Employment services recorded the same revenue as per previous quarter of RM80,000 mainly derived from the vocational training and certification program at Prestariang Skills Training Institute. The segment recorded a lower loss before interest and tax of RM34,000 as compared to a loss before interest and tax of RM169,000 in the previous quarter in line with the lower activities for the segment following the cessation of manpower management services project in Pengerang.
iii. The Concession segment has ceased operation in January 2019 and has stopped incurring operational cost since the end the financial period ended 30 June 2019. Following which cost attributable to this segment is primarily for legal cost relating to the claim against The Government of Malaysia ("GOM") as well as statutory and compliance cost.
iv. Revenue for this segment for the quarter is consistent with the previous quarter as it was derived from management fees charged to subsidiaries for the Group shared services cost. The substantial profit before interest and tax of RM11.3 million for this segment in this quarter compared to a loss of RM0.7million in the previous quarter was mainly due to the net impact of a gain from disposal of PESB of RM17.6 million less one-off provision of impairment loss for property and equipment amounting to RM5.1 million.
Strong cash position
We made substantial progress in our rationalisation plan to monetize non-core assets and reduce operating cost. This is evidenced from disposals of non-core assets and loss-making operations over the last 12 months which had improved our overall cashflow.
We have completed the fund-raising exercise from placement of shares and rights issue of shares in November 2020 where we raised gross proceeds of RM63.2 million. We have recently announced the disposal of our office building in Cyberjaya for RM24.2 million. When completed, the disposal is expected to result in annual cash saving of RM3.4 million plus surplus cash of approximately RM6.0 million to be channeled as working capital for operations.
From operations, we managed to record positive cashflow of RM6.1 million for the six (6) months ended 31 December 2020. This was achieved despite significant settlement and reduction of our trade creditors made during the quarter as we also managed at the same time to increase collection of payments from our customers.
With the fund-raising exercise, monetization of non-core assets and cash from operations, our cash raising will be in excess of RM70 million. The strong cash position will give us the resilience needed as we rebuild our business with new product lines and services in the coming quarters.
Rebuilding revenue base with more products and service offerings
The termination by Microsoft of our wholly owned subsidiary Prestariang Systems Sdn Bhd ("PSSB")'s membership in the Microsoft Partner Network is expected to result in revenue contraction in the immediate term. Nevertheless, we have the necessary capital and buffer to remain resilient as we rebuild our business with new products and services.
Armed with a wider range of products and services from our principals, we are going deeper in our relationship with our customers from mostly managing software licenses into providing multiple Cloud products and services and change management to improve the customers' operational process and drive innovations in their digital transformation journey. We have also expanded our talent business from training to include job placement and upskilling and reskilling.
We have the capability, financial reserves from the recent corporate exercise and products and services offerings, to be a key player in tapping the vast opportunities in the digitalisation process in Malaysia. This includes providing the necessary ecosystem with latest technology working together with our global technology partners as well as offering right talent to drive digital adoption, which is aligned to the MyDigital Initiative and Malaysia Digital Economy Blueprint. On this premise, our Board is of the view that our Group is in good position to capitalise on the task of meeting the market requirement for technology and talent services to spearhead our business growth.